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.

Click here to read the fabulous CQN Magazine for free, or strain your eyes squinting below. You can also buy a hard copy of the magazine here from Magcloud.

[calameo code=000390171a36dad35d58c lang=en page=60 hidelinks=1 width=100% height=500]
Click Here for Comments >

About Author


  1. 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,

  2. 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.




  3. 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)

  4. Jobo Baldie


    13:52 on


    27 October, 2012





    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.

  5. PL on now –



    very happy with the young squad, and the acadamy is now producing as well.

  6. 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.

  7. 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.

  8. he is a very intelligent guy,



    do you fear EPL or further afield might sniff around for your manager ?

  9. win the league, be in the champions route, and we can qulify again, and celtic need to be part of any changes.