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Sale and leaseback of Ibrox, Murray Park, Heads of Terms

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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. Once A Bhoy..... on

    A few quick questions re the blog post.

     

     

    1. Who is in possession of the agreement?

     

    2. Who is in line to sign for tenancy?

     

    3. Who is signing as landlord?

     

    4. Has cash for the deal already been passed between involved parties?

     

     

    Brilliant work Paul…..I don’t expect you to answer if it would affect sources but maybe some of the Bhoys have an idea/suggestion re the parties involved.

  2. was anoyne listening to the snyde phone in tonight,i caught a bit driving home

     

    from work where they mentioned a rumpus about what a guy,Robert, said

     

    before he got cut off,anyone know if it was a big deal

  3. prestonpans bhoys on

    Jobo Baldie

     

    21:21 on

     

    26 October, 2012

     

     

    What is wrong with EK apart from too many round abouts? I spent my first 18 years in Killie now………………I’ll stop!

  4. googybhoy ♥ Celtic

     

    20:55 on

     

    26 October, 2012

     

    Off the subject.

     

     

    RE Fray Bentos

     

     

    The joke in the 60’s about Yogi (the original) going to Big Jock and saying :

     

     

    ‘Boss, I want a rise.’

     

     

    ‘Why John,’

     

     

    ‘I’ve heard that Juventus are after me.’

     

     

    ‘Nah, John, it’s no’ Juventus, it’s Fray Bentus.’

     

     

    BTW, as a complete coincidence I had a Fray Bentos steak and kidney last night. Only because it was past it’s sell by date. You just use a tin opener to take off the top, put it in the oven, cook it for 30 minutes and get 500% of your daily intake of fat. Enjoy!!!

  5. The Comfortable Collective on

    gordon64 21:25 on26 October, 2012

     

     

    Aye, including his agent. If Celtic consider him a £25m player, are they paying him the wages of a £25m player.

  6. Once A Bhoy

     

     

    Before Paul gives you sensible answers, I’ll have a go:-

     

     

     

    1. Who is in possession of the agreement? The Masons

     

     

    2. Who is in line to sign for tenancy? A single mother with 4 weans

     

     

    3. Who is signing as landlord? John Bomber Brown

     

     

    4. Has cash for the deal already been passed between involved parties? The pound that passed from Whyte to Murray and, then from Green to Whyte, is now in the possession of a goat who is ashamed of what he did to earn it.

  7. Every half knowledgable Tim you and I know have been saying all summer, autumn and now near as damn it winter, that the admin and liquidation was just the beginning of a few years of watching pure comedy gold unfold over at Sevcoville.

     

     

    Every story is so big it is hard to know where to start.

     

     

    But the bottom line is, they are dead, their new club is on very very shaky ground indeed and in all honesty, if it was my club I would by now be forming a committee to start a new amateur club called FC Celtic or something like that to keep the spirit of my club alive even where the physical reality of it was beyond rescue. But they won’t because they don’t get it, they don’t want to get it.

     

     

    Unfortunately the butt of our mirth are not the reflective inward looking types. They will not take our humour kindly, they will not heed our warnings, so expect along with the comedy some pretty OTT backlashing from the Old Sevconian Underclass.

     

     

    Surely one of you smart dudes could do a Gangnam Style parody on Sevco:

     

     

    Sevco Style

     

     

    Ibrox Style

     

     

    ‘We have an underclass,

     

    they send bullets through the post,

     

    when people tell the truth

     

    They want to turn them in to toast…..’#

     

     

    Yes, someone more talented that I will need to do it as you can tell.

     

     

    All the Sevconians can sing it and pretend they are riding a big White horse like that bisexual Dutch dwarf they all love so much………

  8. (ref: previous thread) As the storm over the Tommy Burns funeral comments has died down, those who are happy about it should scroll past – BUT Kev Jungle did not impugn in any way the memory of TB. Mind you, I didn’t care for his comment (so what?) & loved the one from Dobbo.

  9. This is a tribute to a mhan I never had the privilege of knowing, but was always impressed by, thanks to his unique contributions to the debate about Oldco/Deadco/Sevco/Rentco.

     

     

    He called himself Corsica. He seemed to know Corsica well.

     

     

    This is a song in Corse, called Neither on Earth Nor In Heaven.

     

     

    http://www.youtube.com/watch?v=KSN4Hwu22EE

  10. Tim Malone Will Tell on

    The biggest mistake the SFA made in all of this was to try and appease the huns.

     

     

    If it had been squarely put that the club was dead through it’s own mismanagement but that they were welcome to start again then we would have been looking at a totally different scenario.

     

     

    Appeasing scum never works…

  11. MurdochauldandHay, 21:36

     

    I appreciate that, but there are some on here who unless they have everything will have nothing. Where is Andrew67 these days anyway?

  12. Anyone watching this Derren Brown thing? If that’s for real it’s pretty shocking what their doing to the guy. How can his own parents allow that to happen. Surely can’t be for real!!!

  13. 67Heaven ... I am Neil Lennon..!!.. Ibrox belongs to the creditors on

    Just saw the murderwell goal that the ref deemed not to be over the line……now, if you had been the zombies, the ref would have given a goal, Ian ……..which it was, ya wee soul….

  14. The Spirit of Arthur Lee on

    Chas and Dave tribute on BBC Four

     

     

    You got a beautiful chin, you got beautiful skin, you’ve got a beautiful face, you’ve got taste.

  15. Not watching but I’d be fairly certain anything Derren Brown does isn’t real, I mean he’s called Derren and magic isn’t real.

  16. 31003 exactly what I was thinking that is awful doing that to him!! He will think he is at a Sevco game!!

  17. Comfortable Collective

     

    I see where your going with your post.

     

    VW signed a contract and has been outstanding.

     

    He has now been offered a vastly improved contract which

     

    he does not feel meets his expectation.

     

    We have been here many times before

     

    and we know how the story ends.

  18. Bhoys,some help please,i have read the lead article a couple of times,

     

    but i still cant fathom out the gist of it all,can someone tell me what its all

     

    about and how bad it is for zombie fc

  19. And just in case anyone brings it up again …

     

     

    Francis Andrews has the same condition as Kyle Lafferty, Mike McCurry, Alex O’Hara, Connor McGhie et al.

     

     

    “Think my name sounds Timmy? I will show you new levels of unTiminess.”

  20. just watched the full interview on c4 website……compelling stuff

     

     

    surely this must make headlines tomorrow….not

     

     

    hail hail

  21. 67Heaven ... I am Neil Lennon..!!.. Ibrox belongs to the creditors on

    Sport breaks out in Scottish Football, and ain’t it good …….. Miss the Zombies.. ???????????HaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHa

     

     

    WWWWOOOOOWWWWW … JUST HEARD SAMMI IS OK…..(hateley says it’s just like signing 2 new players)……… Thank God Sammi is OK …….THE MAIN MHAN, FOR ME

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