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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Good to see Miku get a start, hope he gets his first goal for the Hoops
Indio
Hooper missing today.
Indio
Just shows how strong a squad we have, that is still a very good team, even with a few top guys missing
Indio
Mon the Beram…
Big Vic on the bench today.
Thought we might have seen Tony Watt start, but he is on the bench as well.
Indio
Live interview with Peter Lawell coming up on Radio Scotland now.
Also Cowan & Cosgrove just played this Michael Marra song – never heard it before great work.
When King Kong Came to Glasgow,
C’mon Miku let’s get this thing started…
Wanyama ?
Off to the game now, prediction of 3 – 0 to the Hoops.
Big Efe with a goal in the second half I hope, want to see that somersault celebration.
Indio
Celtic Football Club @celticfc
#Celtic subs: Zaluska, McCourt, Lustig, Rogne, Watt, Wanyama, Hooper (LB)
#Celtic: Forster; Matthews, Wilson, Mulgrew, Izaguirre; Forrest, Kayal, Ambrose, Ledley; Commons, Miku (LB)
Jobo Baldie
13:52 on
27 October, 2012
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
——————
where you going bud the south pole ?
or does our amatuer weather man know something we dont ?
ps – traffic havoc around the collapsed london road being reported, if your going park away from the ground and walk a bit.
COME ON YOU BHOYS IN GREEN
PL on now –
very happy with the young squad, and the acadamy is now producing as well.
the academy is a multi million pound expense.
and over the period the management team has also progressed, NFL has all the attributes to be a great celtic manager.
now seeing the real Neil Lennon, the public image of him was not the best, but we know who he is , and the public sees it now.
he is a very intelligent guy,
do you fear EPL or further afield might sniff around for your manager ?
Neil Lennon loves this football club. Its part of him, he loves it.
John Park has done an excellent job,
pic any number for Victor 20 million upwards, might be 30 million next week.
salaries now very more bonus related.
champions league is were we should be,
no active discussions about a european league.
win the league, be in the champions route, and we can qulify again, and celtic need to be part of any changes.
empty seats are economic decision, not enough money to go around.
it will take rangers 3/4 years to get back, no reconstruction.
good interview.
new portical asked