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. HighlandBhoy


    16:33 on


    26 October, 2012



    Great post Highland Bhoy, maybe you can also help practically, drop us an email at weeoscar4life@gmail.com there is plenty going on and the fundraising is even more important now.



    Remember the Race Night on the 17/11 still a few tables left – £7 per head, email at the above address to reserve tickets or buy a horse/trainer/jockey @ £5







  2. ArranmoreBhoyLXV11 on

    Bunga Bunga or Hail Hail as we say in Glasgow.



    Paul great article . The story keeps giving..




  3. South Of Tunis on




    ” Nobody seems particularly outraged at this ”



    True ————- My experience suggests that many are hoping that the unelected Bilderberger will stay . Opinion polls suggests that if he were to stand for election , he would win handsomely.



    Current democratic choice of future leader is Beppe Grillo —– he is a comedian by trade .



    I was in Rome last night . Dined in a wee trattoria —- nice waitress told me that if I wanted a receipt the bill was 47 .50 . If I didn’t want a receipt the bill would be 40 euros.



    In Catania this morning —- 2 espressos / 2 pastries . Total cost 4.20 . Guy gave me a receipt for 60 cents . . I said — ” The Receipt is wrong” He said ” I know “

  4. Beamishismypint on

    Can someone explain who currently owns ipox and is offering to sell it and lease it back? please.

  5. pabloh_AKA_NEIL LENNON on

    Shurely that pound mishter whyte paid now not looking sho shilly now mish munnipenny



    Fleeshing hunsh left right & shentre

  6. tommytwiststommyturns on

    CSB – nice words from HighlandBhoy. The Knox family certainly needs everyones prayers to help them through ridiculously difficult circumstances.



    On a more practical level, the family can be helped by contributions to the ongoing WeeOscar4Life fundraising campaign. Our race & auction night in the Kerrydale Suite on Saturday, 17th of November will help to provide the family with much needed funds.


    Tickets are £7 each and tables seat ten.



    If you can’t attend the race night, then why not buy horses or jockeys at £5 each. There will be prizes for the winning owners and jockeys!



    Race night tickets, horses or jockeys can be purchased by sending an e-mail to WeeOscar4Life@gmail.com



    Come along and have a great night inside Celtic Park while helping out a vulnerable young family.


    It’s what being a Tim is all about !






  7. Tambourine Bhoy on




    I’ve consumed a beer or 2 today and I’m struggling to digest this (the article, not the beer).



    Could you please ‘dumb it down’ a bit in as few words as is required?



    Any feedback most appreciated.




    Keep it rollin’ folks.




  8. A Ceiler Gonof Rust on

    Petec, thanks for the kind offer of a match ticket. It wont be necessary though as I have two seats in 402 for myself and young ACGR. A very nice gesture, much appreciated. I’ll buy you that voddy one day:-)




  9. Dontbrattbakkinanger on

    Parkheadcumsalford- I understood about 0.5% of it; but you’re right, not only is it bad news but they’re scrapin’ the cah together for a Parks Dept funeral.

  10. Hi Paul,



    Sounds like the back up plan to raise finance if the share issue is unsuccessful. A fantastic scoop that I’m sure the MSM will be all over ;-)



    Inevitably, they will ask Mr Green if he has leased Ibrox? He will quite rightly deny it and you will be denounced as a liar.



    What they should ask, of course, is whether he has had any contracts prepared which would allow such as leasing agreement as revealed on your website. If he lies… well I’d be interested how that affects any legal action if the whole thing goes belly up (again)



    I guarantee they won’t ask.




  11. garcia lorca



    the epl teams are all in agreement about sticking to the ffp rules, except for man city who look like they are going to fall into line

  12. Parkheadcumsalford



    Assuming the intention is to keep the club going, it means they need an injection of cash, and are prepared to mortgage the clubs future to get it. This may be a back up in the event of an unsucessful share issue (i.e. Green’s “underwriting”).

  13. A Ceiler Gonof Rust on

    Sipsini, I love the island. I’ve been going there since I was about 11 or 12 years old. My most recent visit was in june this year with my bro PC67 and our boy’s for some trout fishing on Loch St Clair (Tangusdale). Even took mama ACGR over. She’d not been for over 30 years.



    Love the beauty of the place, the people and the fact that it’s virtually free of hunnery. The castlebay bar is a riot. I saw the vatersay boys there a few years back and it was bouncing. I’ve also been in there during a match v the deid heids. What an experience that was.





  14. mighty tim



    MT , Just in from work and heard that piece on SSN, could’nt believe my ears had to rewind it to hear again. I would like to hear the whole interview looks like some hack sprang the question, good reply from Neil though, who do you think he was meaning in this country….?


    BTW , I did’nt hear anyone complaining about Inter Milans and more recently Chelsea’s back to the wall performances at the camp nou, or Chelsea’s performance against Bayern.


    Fecking hate these hurtin hun churnalists.




  15. Meanwhile on FollowFollow a thread discussing this article has been chopped….



    Truly incredible…. Have they learnt nothing????



    Just because you don’t like the messenger does not automatically mean you ignore the message.



    ‘Nothing to see here… move along… there are no tanks….’




  16. Vandalgrease 16:45 on


    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.



    Add me to this list.


    I find myself excited and happy but only because of others who understand the ramifications of Paul’s headline article are!


    That’s what you get for not staying on to 5th year at school.



    SPF (In the dark)

  17. Neil canamalar Lennon hunskelper extrordinaire on

    Croupiers wanted, experience of first team football an advantage

  18. good afternoon cqn


    Berlusconi sentenced to four years in prison for tax evasion(will appeal)Good company Al Capone,anybody else who we can think of that might be added to list mmmmmmmmmmmmmm

  19. Thor, God of Thunder on

    By Odins nipples Paul this is great news. Tell every Cream Bun you know to cash in their premium bonds and invest. Repayment terms like that in this day and age cant help but make this audacious business venture a success. Less informed fools would probably stick their meagre shekels into popcorn, jelly and ice cream, but not the enlightened. As for Greengrass, do not worry too much about him, he’s only my brother Loki up to mischief…. I always get him in the end. On a side not as I lurked I read that someone found the the tanks in one of the footer adds a bit annoying. So did I at first but then I imagined them as parking at the foot of a marble staircase and I felt a lot better. On a further side note, can you get jelly and ice cream flavoured popcorn?

  20. Over on the Bears Den they are treating the story as a spoof. Reckon a Tim produced the entire thing.

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

    I sneaked a minute earlier today to read the Alex T blog and was astounded at it. Not so much at what has happened, more at the fact that it’s out in the open.



    And then I get home to read this. Good grief.






    16:45 on


    26 October, 2012


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






    I need help here as well. It sounds like the end to me. Are they really facing the Very End now?

  22. The Prince of Goalkeepers on

    Paul67, what a scoop, absolute dynamite.



    Wouldn’t Charles be better off going to Wonga?

  23. Ahem.






    One newspaper report this morning claimed Green’s consortium were prepared to consider all options to protect their investment – including sale and leaseback of the club’s Govan stadium and training complex in Auchenhowie.


    However, in a statement, the RFFF said: “As agreed between Charles Green and the RFFF, certain business sensitive information cannot be disclosed at this time.


    “The RFFF is, however, able to announce that it secured a commitment from Charles Green that he and his consortium will not be mortgaging nor disposing of any of the property assets of Rangers Football Club plc.


    “There will be no arrangement whereby the football club will be required to pay any rental/leasing costs for the use of the property assets now or in the future”

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

    I feel very stupid for not being able to grasp the significance of this. The words appear simple enough and I think what has me stumped is the Who is leasing to who?



    Then I saw this





    17:25 on


    26 October, 2012



    Inevitably, they will ask Mr Green if he has leased Ibrox?



    …..and the cogs began to turn.



    This document referred to in the OP – I assumed it was a proposition. Is it in fact the deal Green already has? Is he the tenant? Who is the owner – Whyte? One of his companies?




  25. obonfanti1888



    17:39 on 26 October, 2012




    I think you’ll find that Mr Greene’s commitment was given ‘in terms of the debate’, and as such, doesn’t count.

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

    Scrub that. I’m more confused than I realised.



    Who owns Ibrox? Does Sevco really own Ibrox?

  27. How many scoops is that now Paul67 ? :) In a way you and your informants are helping the fans of sevco as they would be paying out to green thanks to JimTraynor and his media spinning lackies.



    So effectively Der Bomber was right. Green owns nothing but is the named tenant. So is it Whyte or Ticketus who own the assets ? Ticketus being part of the Octopus group tells me they never get done over so all very interesting. Green plans then own using more sevco fan money to acquire the assets to then probably sell back at a profit down the line. Brilliant.

  28. alex thomson‏@alextomo



    #c4news tonight: the book editor, football club, QC and 32 journalists – just some of the people suffering from Rangers criminal underclass

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