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. Mea Culpa –



    bsr messed it up ;-)



    the 3 former clubs (as in ‘no longer exist’) are Thiurd Lanark, Airdrie and Rangers

  2. •-:¦:-•** -:¦:- sparkleghirl :¦:-.•**• -:¦:-• on

    Mea Culpa


    12:40 on


    27 October, 2012




    Read it again. Take particular note of the word “former” ;)

  3. Vic posted this on twitter last night:



    Victor Wanyama ‏@VictorWanyama



    For those who are still asking, i am happy and enjoying my football here

  4. Mea Culpa/Jobo



    bsr messed it up ;-)



    the 3 former clubs (as in ‘no longer exist’) are Thiurd Lanark, Airdrie and Rangers



    Made the same mistake before and was immediately publicly scalded



    *shakes head*

  5. Ticket CHECK


    Zombie mask CHECK


    Betting slip with Efe to score anytime in 90 mins CHECK



  6. Have you seen that there’s a new movie called “Cockneys v Zombies” ??



    The mind truly boggles at that one…



    Give us 6 today Celtic, let’s put Killie to the Sword..

  7. bsr – glad to see you’re taking this like a man and not, for example, having a cheap shot at my spelling…


    It’s a cracking sunny but cold day in Glasgow for a game of football.



    Just an hour to go. Hoping for a bumper crowd to cheer the Celtic on after their midweek exploits.




    It took until the next day for me to really appreciate what a great experience it was. When Villa hit the post I really started to believe it was going to be our night. So it was a bit of a sore one to take on the night, funny how your expectations change as the game went on.



    All really positive comments about the team and fans from friends and colleagues here. Its been great! Everyone wanting to talk to you about Celtic ;)



    It was also nice to catch up with friends and family from back home. Really tempted to go to Lisbon now as its pretty cheap from Barca.



    How about yourself? Were you over for it?



    Looking forward to tuning into Celtic tv for the Killie game. Hoping Miku opens his account.




  10. I had the misfortune of seeing the programme for last weeks Glasgow derby, Sevco v QP.


    Banner headline “140 years history of Integrity and Dignity”.


    Aye them and QP.




    They are not for changing.


    Dragged kicking and screaming it will need to be then.


    Right, match time.




  11. Just read the main article Paul…very interesting. Would love to see this particular scenario playing out…would love it. Also enjoyed the “ash park to train on” comment…from £700m super domes to ash parks in a flash. For any FF-ers lurking, my hopeful joy is not because I dislike oldco or newco…it’s cos I dislike cheats and ‘business’ men like Murray and Greene. Imagine finding your salvation in someone like Ashley?!

  12. Joe Filippis Haircut on

    A good away win for Hibernian last night if they keep up there improvement they could finish second with Celtic top Hibernian second Green and Whyte would be the colours to have.I hope Lennie plays a few youngsters today to give them experience. H.H.

  13. Neil Lennon is ainm dom (nohunlover) on

    Meant to say, saw the RTE reality show during the week with Nicky Byrne (from Westlife) where 10 Irish boys compete to win a contract with Celtic. Great PR move for the club in Ireland. Facilities looked amazing, also great to see John Kennedy feature.





    Yeah, I was over with my youngest son (12). Had a great time, arrived on Sunday so had a few days to enjoy the city: Hotel, food and drink were great.


    Pre match we went to Icaria beach then La Boqueria, to try and cure his allergy to fresh food ! Fair play he had a smoothie and fresh oysters (his choice).


    His resulting facial contortions had me, the stall-holder and some tourists in stitches.



    The match itself was wonderful experience, even up in the gods the view was good. Would have been good to get out with a draw, but in all honesty, we didn’t hold the ball throughout, let alone in the last 10 minutes to warrant a point.


    Felt Samaras may have been able to.



    Like you I thought we might have escaped, against the odds, when they hit the post.



    I’m going to the game in the next few minutes, so enjoy the match.



    Hail Hail

  15. Right,



    thermal vest – check


    McGrain t-shirt – check


    extra t-shirt – check


    long sleeved green thick cotton shirt – check


    hooped jumper with bif turn up collar – check


    scarf – check


    hat – check


    gloves (leather so I can still clap loudly) – check



    Only problem now is fitting in behind my steering wheel.



    4-nil today with Miku to get his first goal for us.




    Sounds like a great experience and few days for you and your son. Fair play to him for trying oysters! I love them now but at 12 I imagine my reaction would have been very similar.



    Yeah, I must admit when Sammy went off I thought we would struggle. Especially in Europe, he is so important for getting us possession higher up the pitch.



    Likewise, hope you have a very pleasant and enjoyable afternoon.




  17. Right, here it is, the team for today.



    Very interesting line-up, looking forward to the game on this sunny afternoon.



    Forster; Matthews, Wilson, Mulgrew, Izaguirre; Forrest, Kayal, Ambrose, Ledley; Commons, Miku (LB)



    Come on you Bhoys in green.