Sale and leaseback of Ibrox, Murray Park, Heads of Terms


I have a Heads of Terms document for the sale and leaseback of Ibrox, Murray Park and the Albion Car Park.

The purchase price for all three assets is £7.285m.  In addition to this there is a £6.9m loan provision with 15% interest payable monthly (£985.5k annually).  Initial rent for all three properties is £1.8m.  The 20-year lease provides for upwards-only reviews every five years by either 2% p.a. or RPI, whatever is greater (so assuming RPI is less than 2% each year, after five years, rent would be £1.987m).

Annual costs for rent and interest would be £2.835m.  Current season ticket sales are reported to be approximately 36,000 with a standard adult price of £286, income net of vat will be around £8.5m.

Although the top line figure for both sale and loan is £13.835, “the initial payment will be less 3 years rent [£5.4m] to compensate for the lack of guarantee covering the rental payments”, so monies paid would be £8.435m as the first three years rent is deducted from the total.

Crucially, rent is to be securitised against ticket receipts and the new landlord is to be granted “first charge on the season tickets”, so, just as Craig Whyte planned with Rangers, Sports Direct FC would collect ticket money before passing it on to the security holder.

If the buyer attains planning permission for residential properties at Murray Park, a provision releases the seller from having to repay the £6.55m loan and cancels future interest payments.  This speculative clause would release the club from punitive interest repayments but would require them to find a reasonably priced ash park to train on.  Perhaps the Albion Car and Training Park.

“The tenant” will be able to buyback the stadium.  In year one the price would be £10m (they would still owe the £6.55m loan).  The set price increases by 12% p.a. for 10 years, so the year-10 price would be £27.7m.  Thereafter “price will revert to Market Value but will not be less than £20m”.  The market value of Celtic Park is around £50m.  There is no buyback provision for Murray Park or the Albion Car Park.

The deal is on the table but will not be signed before the share issue, or if “the tenant” wins the Euromillions Jackpot (that’s not a euphemism for Champions League money, I mean the actual lottery), or finds some magic beans.

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  1. Lance Armstrong, Silvio Berlusconi, precedents now set. Bet you they wished they lived in the best little bigotted country in the world.



    (Is Berlusconi a kafflik name?)

  2. Posted on here a few times it was advertised as a ‘unique property deal’ by Duff&Phelps to all interested parties.

  3. Gordon J



    I reckon that Ticketus in some form or another are involved as the only way they can get their money back is to put bums on seats.



    if you can do this by a) charging a rent for each seat and then b) creaming off some of what you then charge a bum to rent the rented seat for 90 minutes, then you have more or less guaranteed a return on the original advance until it clears.



    It all reminds me of a story of how hunters kill wolves by draping meat over sharpened blades. The wolves cut their tongues as they attack the meat then gorge on their own blood until its spent.




  4. Call me stupid. But am I the only layman who needs this explained more thoroughly?



    Is this a potential deal?



    Does it mean Charles Green/Sevco are skint and need to sell the crown jewels to last this season?



    Cheers in advance.

  5. So Greene sells to Ashley.



    Ashley leases to Greene.



    Ashley is the landlord and Greene is the tenant.




  6. O.G. T4 this story came up a couple of months ago on here, I spoke with a friend of mine who is/was one of the West teams doctors also ex Celtic doctor. I asked him if he had heard this, his answer was absolutely under no circumstances would the West swap/sell to murray park. That was his opinion and from our conversation it had clearly been doing the rounds in the clubhouse.




  7. Gordon J – I agree. Who produced this doc and who is the potential purchaser? The £13.8m question!

  8. Ernie Lynch.



    That’s how it seems to me.



    …..whilst Govan turns into a warzone of Manchester proportions…….

  9. philvisreturns



    16:36 on 26 October, 2012



    South Of Tunis – It’s remarkable how swiftly Berlusconi’s fortunes changed for the worse after he suggested Italy might leave the Euro. (thumbsup)





    Did he really do that?



    Wow, at least he wasn’t flying like the Polish Government.



    Geo Politics at play.

  10. NFL sticking it to Schuster on sky sports news. ” after 16 minutes I was thinking what will Schuster be thinking about how we are playing I better change it” then states he is a failed coach theres a lot of them in Spain and here.



    Tell it like it is NFL.




  11. tommytwiststommyturns on

    mighty tim – thanks for the update.



    Nice to see the cheeky chappy being shown up for the coward he is on Channel 4 news.




  12. Is this a Green/Ashley/Ticketus deal,with Craigy Bhoy cut out of any deal? Could be why he’s smoking out all the big players?

  13. philvisreturns on

    petec – He did, and within 4 months he was replaced as Prime Minister of Italy by an unelected EU functionary, who then formed a government full of unelected EU functionaries.



    Italy is no longer a democratic country. It is run by an unelected Bilderberger who owes his position to the EU, not the Italian people.



    Nobody seems to be particularly outraged at this. (thumbsup)

  14. Another day , another disgrace.



    The hellmouth has well and truly opened and this cess pit of an orginisation that has poisoned and polluted everything it has touched continues to unravel before our very eyes.



    I only wish my father and grandfather where alive to see this .



    We are immensely fortunate to be living in these historic times.

  15. Joe Filippis Haircut on

    I can see big trouble ahead for newco and Charles Green if they dont raise the 50 million through the share issue.I have repeatly asked where is the funding coming from to run the stricken club? and no answers are forth coming I can see them going into financial melt down unless of course they can produce information publicly to show otherwise. H.H.

  16. Celtic Soul Brother- Supporting Kano 1000 on

    Great article Paul.



    See below superb post from the end of the last blog from a new poster-should be read.





    16:33 on


    26 October, 2012


    First time poster, just felt the need to put down my feelings regarding Wee Oscar. I have followed the situation closely over the past few months as I know a lot of others have.


    It goes without saying how much of an inspiration the wee man and his family are but they are much more than that, the courage and bravery that they show shines through even in the darkest times.


    They bring out the very best in people, not just in the Celtic Family but also in the wider community.


    On a personal level they have changed my outlook on life to the extent that I dont worry about the crap that goes on but concentrate on the good things i.e family and friends.I can honestly say that knowing about the wee man and his family has made me a more grounded and less selfish person and for that I am grateful.


    If ever a family deserved a break it is this family because they have given so much to other people without realising it,I hope and pray that they get that break soon.


    I am sure that it will happen, we can all help through prayers to whichever God you believe in or if you have no God through thinking about them at this time.


    God bless them and look after them.




  17. A trio of Rangers fans who chanted sectarian abuse at the new club’s first game have been given fines and football banning orders.

  18. mighty tim, 16:47


    I had forgotten about until today it but at the time I saw some interesting documents that made me think a longer term game may being played out.

  19. There’s a bit in The Simpsons when Homer secures his dream job in a bowling alley. He needs to increase footfall or lose his job. We see him reading an advanced marketing boo, then marketing for dummies, then looking up marketing in the dictionary…



    That’s how I feel when I read the post. I could read it all day and still not have a clue…



    Oh, and Homer’s travails ended thusly…




    [Homer is trying to think of a way to increase business at the bowling alley]


    Homer: Of course!


    [Cut to outside the bowling alley, Homer is firing a shotgun into the air while people around him run away, screaming]


    Homer: Bowling! Bowling here! Get your bowling! Who’s ready? Bowling!


    Lisa Simpson: Mom, make Dad tell the story right!


    Marge Simpson: That’s what really happened.


    Lisa Simpson: Oh.

  20. As was mentioned earlier by WG killie haven’t won at CP since 1955 and as he stated even during some of our poorest times, in fact they would have been wearing blue and white hoops back then.



    I had a wee gander at their record since then and the following has occurred since a killie team managed by ex-Celt Malky MacDonald and containg former Celts Alec Rollo and Willie Toner won 2-0 on December 10, 2005.



    The Celtic side was: Beattie; Haughney, Meechan; Conroy, Evans, Peacock; Higgins, Fernie, Sharkey, Collins, Mochan, BTW I believe the Conroy at right half was the father of Mike who played at centre-half in the riot final against the Zombies.



    Since then killie have won the League once, runners up 4 times, won the SC once and been runners up twice, runners up 4 times in the SLC, Inter Cities Fairs Cip semi-finalist, International Soccer League (played in the US) runners up and Tennents Caledonian Cup (played at the pox) winners.



    I realise that there is a huge dislike among Celtic supporters for the club some daub (well I do) kilmasonic and knights templars but 4 of their managers were Celtic legends



    James Edward McGrory, Malky MacDonald (twice) Willie Fernie and Tommy Burns.



    Incidentally the reserves won 2-1 at Rugby Park that day with the following team: Bonnar, Fletcher, Goldie, McPhail, Stein, Duffy, Craig, McVittie, McAlindon, Ryan, Auld.

  21. Magic article, wish I’d stuck in at school so I could write like that. 6 years at secondary school fighting over kola-kubes Disney cut the mustard.

  22. BOOM……….?????




    as i have long expected all along not all the cards are on the table


    the main question who is holding the joker ?



    my bet is the hero craigy boy



    even with £100 million extra funding they had under minty they still came second


    what next another arms race to go back into administation




  23. Good stuff Paul. I always assumed that was the game but lost the trail of who held the title ( or the deeds as Bomber would have it ).


    There has been a lot of comment on here after the Barcelona game highlighting Celtic’s efforts particularly bringing focus to the disparity in the respective club’s financial profile. Barcelona are a wonderful football team but a poorly managed business with debts in excess of £500M.


    Where is Financial Fair Play( FFP ) is the cry.


    Well tonight’s London Evening Standard features a piece from the Arsenal AGM held yesterday.


    Arsene Wenger spoke passionately about FFP and pleaded with fans to be even more patient. Arsenal have won nothing for 7 years although they did make the Champions League Final, nearly won it if it had not been for the intervention of oor Henrik.


    Their CEO Ivan Gazidis ” ran a gauntlet of scorn ” when he claimed that Arsenal would reap the benefit of their prudent ( yes, I know, it’s all relative ) business model within 2 years as the impact of FFP kicked in.


    Wenger enlarged on these sentiments. ” My job is to deliver a team with the resources we have and I have never complained about that. I want the club paying players from it’s own resources and there is no shame in that. It is important that we keep our strength and stay United for the good of Arsenal”.


    Wise words. I hope the timeframe proves correct because what is good for the Arsenal business model is good for Celtic. If FFP does kick in it will be drains up time for those clubs with debt mountains.


    November is set to be a lovely month- no matter the weather!

  24. philvisreturns



    16:54 on 26 October, 2012



    Fear not m8, I am outraged but what can you do with a press like Murdoch’s feeding crap all over the place.



    Mary Whitehouse is ma kind of woman now, didn’t realise it back then as she was just an old lady gibbering before she died, nah she cared more about society than anyone else but she was ridiculed. A relevant tangent.csc



    I brought the dodgy old Bilderbergers to the fore as soon as I joined this excellent site, the CFR is more worrying though.



    Who is Salmond getting funky with? Murdoch. Independence to get into the European Union. Oh dear.



    HH buddy.

  25. pabloh_AKA_NEIL LENNON on

    Shurely mishter whyte ownsh the asshetsh and hash come back to remind them he’sh the man with the cardsh

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