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. tommytwiststommyturns



    20:41 on


    26 October, 2012


    googy – I know, who still calls them discos?! :-)



    Who starts a sentence with “suits me Sir”.



    It may be midlife campness.

  2. Magnificentseven on



    20:41 on


    26 October, 2012


    googy – I know, who still calls them discos?! :-)







    yhats what I was thinking! is it an over 50’s disco!!!!!! he is picking the boy up from???

  3. Blantyretim.



    I received the info re Johann Murdoch.But you still haven’t sent me The Jinky Boy’s current e-mail address.

  4. alex thomson‏@alextomo



    Info received tonight about the Rangers hate-site we featured will be passed it to Strath Police who told #c4news they take this seriously.

  5. OG –



    I watched the online extended interview earlier. Breathtaking stuff. But I saw an earlier post from you indicating that the stuff to be on the TV news would be just as impressive?

  6. setting free the bears



    I’m a bit too tired to go into much detail – just a finger in the air guess at the one in five titles.



    All I would say is that Rangers did their 9 in a row while Celtic were a shambles. Any successes since then (and most of them were marginal) were due to financial doping.



    If both clubs play by the rules, we are a bigger entity.



    BTW, other people could do a better prediction by me but I’ve been up since 5 a.m. so the brain has gone into lockdown mode.

  7. Hi I am CelticRollerCoaster and for some bonus points at the start of the quiz can anyone tell me………..



    Which team in Scotland is deeed?



    Which team is nearly deeed?



    And for a bonus point which team from Edinburgh is nearly deid ken?

  8. Jobo, sorry if I misrepresented that, it wasn’t my intention. It was a broader piece, as you saw, which complimented the detailed online VT.

  9. Off the subject.


    How the hell do you open a Fray Bentos pie. I have had to open one of those tins and they are impossible.


    Conventional tin openers are food and drink to these super tins.



    I nearly lost a finger getting the top off. Even considered opening the tool box for heavy duty power tools.



    I have decided start a new diet fad. The Fray Bentos pie diet. You are guaranteed to lose at least 1000 calories just opening the tin. It also takes the best part of an hour and you are so knackered you fall asleep while it is cooking.



    The pastry puffs and burns and you end up throwing it in the bin. Result 1000 cals lost and none taken on.

  10. I wish AT had put the part played by TFPL on national tv and exposing his complicity in the intimidation of certain people rather than on channel4’s website,though shocking and disturbing it lessened the impact by not being seen nationally I think

  11. OG –



    can’t get too much of a good thing so I’ll watch the actual TV piece later. if only I could drag myself away from this football fiesta that is Motherwell v Hibs…

  12. Paul 67



    Well done on unearthing this little gem this evening. A great example of real investigative journalism at work.The similar excellent efforts to investigate what is going on at Ibrox by AT,Phil and Mark Daly also deserve praise.



    It seems that nobody else in the Scottish media is prepared to ask real, relevant questions on this debacle.The good and the great in Scotish society also are keeping stumpf.They need to wake up and smell the sh1te. The news is lads that this one is not going away and yez can’t keep your heads down forever.



    Following AT’s report this evening we may have a better understanding why, at least some of these people, are afraid to come forward and dig into the Rangers dungpile. Any criticism or questioning of the financial wrongdoing is met by literally personal attacks or threats of the same. The Laptop Loyal also play their part by either their silence, wilful ignorance or, in the worst cases, the disembling of the truth in support of the mob and their masters.



    Can the Rangers/Sevco fans be fooled again by yet another shyster ? All evidence points to the fact that they can, and very easily.No intelligent person could come to any other conclusion. From our point of view the Perfect Storm is about to descend on Ibrox for the second time in a year and the victims of the last one are lining up to be victims again. At least after Hurricane Katrina the city and people of New Orleans embarked on changes to try and ensure that when the next hurricane hit they could try and limit the damage by increasing the size of the Levees etc. AT Ibrox the fans have done absolutely nothing but mimic the same destructive behaviour which so badly served them when Whtye took over.



    Keep up the good work Paul. At least you are trying to tell the victims they are about to be mugged again. You just can’t talk to some people though!



  13. googybhoy – Putting the Fray Bentos pie in the nicrowave a la Broadfoot should take the lid off.



    It may also take the lid off your house.



    Disclaimer – don’t do this at home – this is a joke.



    I suppose everybody here knows that Fray Bentos are Uruguayan rather than Argentinian.

  14. How To Finance Buying a Football Club


    Written by Harry Brady


    Thursday, 04 October 2012 21:05



    So you’ve spotted a large football club on it’s knees. It’s in administration with such huge debts that liquidation is inevitable. Fortunately none of the local worthies want to be the guy who puts the final nail in the coffin, so whilst they’re all standing around playing chicken, you nip in with a ridiculously low bid for the business. You pretend to have the best intentions but you slip in a clause that gives you total control in the event of liquidation. The inevitable happens, the club goes bust and you are now the proud owner of a shiny new club…except you’re not really. You don’t have much cash, you just spotted a good way of making money and persuaded some Venture Capitalists to invest. All VC’s want their money back inside 5-7 years and at a good rate of return; they took a risk so they want double their money back. You have some further problems too. The “insolvency event” means you’re down at the bottom tier of football – hardly a great income generator AND your fantastic plan to sell all the top players was scuppered by some pesky legislation called employment law. The final problem is the issue the local worthies had – the locals don’t like the guy who made the club go bust.




    So you own this nice football club with big stadium and facilities, but like all big modern clubs you will have big screens and academy facilities so even doing nothing burns cash.




    The problem is your plan is and was always short term so you and your investors need to get their 100% return and quickly so just how will you do that?




    First up – create a myth and siege mentality. Persuade the locals that the football team and the business are somehow not linked. The BUSINESS went bust but the football team lives on. Next repeatedly suggest that anyone who tells you differently is the enemy, in fact scrap that EVERYONE is the enemy full stop and only you can save the club. Football fans love that siege mentality. From Fergie at Aberdeen to Mourinho at Real it’s a tried and tested technique. Remember – everyone is out to get YOUR club.




    Now we have this in place the real business of making money can begin. You have assets and a good revenue stream, let’s make it work for you.




    Sale and Leaseback



    The club need to play somewhere and you’ve created a “maintaining the history” myth so you can illustrate to investors that you’re not going to play in a spare stadium the city may have. That’s a fairly secure tenancy.




    Sell the ground and rent it back for 20 years. The investor will want a hefty rent however because you’ve gone bust once and if you do it again the ground may be worthless. So you manage to keep the rental level at 25% of the purchase price. But how…?




    Securitise the Season Book Sales



    A wheeze unsuccessfully tried by Craig Whyte at Rangers, but you never know you might find football fans stupid enough to let you do that. So the 25% rent level can be guaranteed from ticket receipts and a first charge on the season tickets income for those 20 years.




    Plough Up The Training Ground



    The problem is football grounds are not really worth that much. Yes in London Arsenal could get a handsome premium but many of the UK’s older clubs have grounds in former industrial areas. These brownfield sites are may only be worth £7m – £8m. That won’t be enough so what could you do? You have a spanking new training complex. Like Man City and others this was set up in modern times, close to where the players live and in a far more desirable location than your stadium. But the training ground probably specifically prohibits residential AND you’ll lose your new found goodwill if the locals discover your plan, so what to do?




    BORROW a similar amount to the stadium value and simultaneously apply for residential planning consent (the lender will want to be absolutely sure you’re doing this so no sham applications you cheeky monkey you). If consent is received within 3 years of completion you hand over the training ground and the debt is expunged. During those three years you’ll have a hefty interest rate again (as much as 15%) and if planning isn’t granted you’re up shit creek as you’ll still have the principle to repay – and don’t forget you’ve just secured season books for 20 years above!!!!




    Buy Back



    As you can see all of this is about short-term cashflow but if you’re in it for the long haul you’ll want to get your assets back after all as any Leeds fan will tell you, securing a debt facility to build your team is pretty difficult if you have no assets so you would stick in a buy back option on the assets. You would want to have a buy back option on the Stadium for say the first 10 years post completion. The problem is your investors are in it to make money and they would really much prefer the revenue so it would probably be based around a starting level circa 50% more than you sold it for with a purchase formula increasing annually by 12%, thereafter reverting to Market Value but no less than circa £20 million.




    But you took out loans on your training ground so that’s gone forever oh and if you’ve got car parking, well that’s a guaranteed revenue stream AND one day it’ll get residential planning easier than anything so you’ll not get that back either.




    As you can see, buying one these distressed clubs (such as Portsmouth in England) may appear straight forward but the challenges of getting the money out are difficult. Craig Whyte managed it because we have a very gullible press in this country. Once bitten twice shy however and I’m sure they are on their guard. Whyte’s plan was really simple and eventually he got found out. The stuff above – a similar plan to that hatched by those who destroyed Leeds would be slightly less obvious but I just couldn’t see ANYONE getting away with it. Could You?




    So if you’re thinking of buying a football club, make sure you pick a big enough one to do all of the above.

  15. harryhoodsdugbitme on

    As an old Holyrood bhoy I walked past Cathkin Park in the 70’s on the way home most days. I never ever thought the site of it on C4 news would make me laugh as much as it did. Zombie land fit for an old dead football team. Just perfect. Millions of borrowed pounds don’t come without a charge and any form of bricks and mortar plus a revenue producing stadium stream just might help sweeten the deal. Anyone think that a bank would lend that kind of money without a security? Me neither. Bomber was spot on. Really stupid huns. HH.

  16. petethebeat



    20:59 on


    26 October, 2012


    googybhoy – Putting the Fray Bentos pie in the nicrowave a la Broadfoot should take the lid off.





    No one is that stupid although did consider putting half opened tin in the oven.



    Hope I have not opened a can of worms?




  17. Embdy having beers per match tomorrow



    My bhoys home from Uni ..we’re going to the game ..seems Juniors taken a notion or bevvy since he’s been away ,….unsure where he gets that craic from :-))

  18. 1 Mexican Wrestler El Loco



    2 Paul Lambert, 2 Sausage Rolls and a Loofah



    3 Sure it’s a quite nice team to play for



    4 Haddock



    5 a)Clostridium Perfringens b) Diarrhoea c) Campylobacter d) Gordon Duffield Smith



    6 Coat hangers and empty ginger bottles

  19. *THE KING VIC 67* on

    “Some men fight for silver, some men fight for gold…….. The zombies are fighting for the land the sevco’s stole”

  20. blantyretim



    21:05 on 26 October, 2012





    bin it, pure mince so it is…




    It should be added to the ESA test.



    “Mr. Smith frae Bentos was observed opening the tin in under two hours so on his manual dexterity gets Nil points”

  21. Ghents



    We quiz for yeez if you’re interested ..



    Name the all time top scores in the EPL in each position



    Team is 4-4-2 …with two wingers ..and it includes the GK

  22. 67Heaven ... I am Neil Lennon..!!.. Ibrox belongs to the creditors on

    I’ve just finished work, and sitting down to read Paul’s article, I nearly fell of my seat. It’s all kicking off now…..



    Is this ‘public’ now ?…….this will condemn any share issue to the bin…. Looks to me as though Ticketus currently own these assets (they must have been security on the ‘advanced’ money)…Dooooooooo Doooooooooo



    Off to read back…..Hibs 2 up against murderwell….. All good news tonight

  23. googy


    thanks for the reminder…o((



    week of and 3 appeals on my return on Monday…