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. Pages:
  2. 1
  3. 2
  4. 3
  5. 4
  6. 5
  7. 6
  8. 7
  9. ...
  10. 21

  1. obanfanti-“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”


    I wonder if Green will be happy to chat about that one.

  2. The CEO of the SFA walked out of a meeting with the criminal class of Sevco



    Pity he doesn’t want to tell us about the armageddon he faced across the table that day



    AT not getting any info from the authorities quelle suprise

  3. So after the first year the entire loaned amount has been returned thanks to the 3 year guarantee thingummy, but interest at 15% continues to be charged?






    And the loaner has assets secured against the rest.



    An astonishingly bad deal that would only be considered by those with one or two last pieces of silver to pawn.



    Desperate stuff.

  4. To clarify:



    This document was prepared by Green?



    He plans to do the deal with Ashley, for example, and get his initial investors a whack of cash back immediately?



    And Ashley (or A.Nother) can then go ahead, exploit the Murray park and car park assest if they so wish, whilst taking in rent from the Zombies?



    Someone point out my errors/clarify?

  5. The Prince of Goalkeepers on

    Sounds like this is an option to raise more working capital after the IPO, particularly if that doesn’t go well. On the basis of Paul’s article it seems safe to assume that at this point Sevco Scotland own the stadium, training ground and car park, but I don’t see any mention of the proposed buyer in Paul’s article.



    Could it be Octopus/Ticketus? Just a thought…

  6. How come we’re getting all these leaks the week before the FTT tribunal decision is made public?

  7. Petec,



    Interesting opinions. Don’t think the BBC are any better than Murdoch because they are complicit in all the middle east issues. The newsnight about Syria other day was the most blatant piece of propaganda yet with a cut and paste job of ‘rebels’, unknown people paraded in studio as representatives of Free Syria and Paul Wolfwitz, the ultra neocon part of the criminal cabal who planned the middle east civil unrest policy back in 1999.



    No mention of weapons being supplied by USA through Turkey, factually proven, or CIA working with Al Queda and paying them to stop in Libya now and move to Syria, also on record.



    p.s. Italian prime minister is a non exec of Goldman Sachs, same as Samaras in Greece. If only it was our long haired hero instead.

  8. Just got email from Celtic warning roadworks still in place near stadium,Springfield Rd at London Rd i think,worth checking out.

  9. jimmybhoycampbell on



    13:07 on


    26 October, 2012



    just got back in from the lovely Glasgow sunshine… and freezing wind :)



    thanks, appreciated

  10. itsabouttim



    17:54 on 26 October, 2012



    Wasn’t a lady judge by any chance ol Silvio get every were

  11. Citibhoy Shoulder to Shoulder with Neil Lennon on

    Standing next to Charles Green at London City


    He has just called “Malcom” who could that be


    …. Quote ….


    “what the deck is going on


    This has come out 1 hour after a private roadshow”



    “I’m not happy …… ”


    I bet he is not



    Chap with him barking away in what I think may be Arabic



    I think they might just be a tad p’d off Paul



    Any Journos want to ask Charles he will be coming off the 18.10 from London City in about 70 mins

  12. ArranmoreBhoyLXV11 on

    Who sabotaged the CQN?



    Loved the linking of Sevco with Third Lanark!!



    Reality check




  13. Enter………………………ra Bommmur,



    stage left?……






    *crosses fingers*

  14. I have been reading The Boss, a very good insight into Sir Furious.



    very good read actually.



    one thing sticks out midway of his tenure and that was the PLC , and the creation of FC United as the “custodians” of the real United, in their eyes.



    If I was unlucky enough to be a Zombie Sevconian Not Handsome person, I really would be sickened by all thats gone on and going on. I would be seriously tempted to walk away and start somewhere else.



    They blind loyalty, non questioning, meek acceptance of everything inside the big hoose, no matter who the master is

  15. Will that horrible mob ever bottom out?



    They seem to be eternally tumbling into the abyss with all manner of horrors and nightmares noting their progress and circling for the final soul stealing.



    Rot In Hell Rangers!

  1. Pages:
  2. 1
  3. 2
  4. 3
  5. 4
  6. 5
  7. 6
  8. 7
  9. ...
  10. 21