Guest SBG Posted August 16, 2013 Share Posted August 16, 2013 I'm aware that the battle for our club involves a massive propaganda wagon well under way and i'll take this with a pinch of salt. However, barring the club ceasing to exist, this is the Rangers supports worst nightmare. 0 Quote Link to post Share on other sites More sharing options...
alexscottislegend 2,090 Posted August 16, 2013 Share Posted August 16, 2013 You only have to look at Coventry City to see the dangers of involving your club stadium in any kind of leaseback scheme. They had a perfectly good home (Highfield Road) which they sold for housing in return for renting a brand new arena which was owned half by the local council and half by a local charity. Now they are having to play home games 35 miles away and the club is in admin. 0 Quote Link to post Share on other sites More sharing options...
alexscottislegend 2,090 Posted August 16, 2013 Share Posted August 16, 2013 (edited) Would be a massive risk. Purchaser would want a double digit yield if they were picking up maintenance costs, so in less than a decade the money raised would be gone forever. More importantly, we'd be offering a hostage to fortune - what would we do when the initial lease comes up for renewal and the owner decides to jack up the price? Move to another 50,000 seat stadium in Glasgow? Think this one is just nonsense. See my post on this. That is just what happened this season to Coventry. Edited August 16, 2013 by alexscottislegend sp 0 Quote Link to post Share on other sites More sharing options...
True_Ger_1872 2 Posted August 16, 2013 Author Share Posted August 16, 2013 As i said in my original post - it was just rumours doing the rounds so I am treating this with a pinch of salt also. The theory of the scheme would be that we sell the assets for a cash lump sum which would keep the club afloat for the remainder fo the season (if rumours are to be beleived about cash running out by Christmas!). we would then lease back the stadium at a vlaue per year with the option of a buy back within the first year (which would make this a short term cash solution) and if we opted not to buy back within the first year, then the sale vlaue would increase year on year. What would also have to be taken into account is the interest repayments on such a scheme! Anyways, the chat has went quiet on this which could mean one of two things: a) its a lot of scaremongering; or b) the rumour is being substantiated before it is made more common knowledge. 0 Quote Link to post Share on other sites More sharing options...
Darthter 542 Posted August 16, 2013 Share Posted August 16, 2013 Lifted from a Rumour site: Rumour that there will be a sale and leaseback of Ibrox, Murray Park and the Albion Car Park. Supposedly the buyer will pay £7.3m for all three properties and, in addition, will provide a loan to RFC of £7m at an interest rate of 15% p. a. Rent will be reviewed every five years, on an upwards only basis, either at RPI or 2%, whichever is greater. RPI is currently 3. 3% RFC will take a lease for the stadium and the car park on a 20 year lease at an initial rent of £1. 8 per annum. Interest on the loan works out at £1m per annum, so rent plus interest would be £2.8m p. a. Top line figure for both sale and loan is £13.8m, however, the first three years rent (£5.4m) will be held back as no one is prepared to guarantee the rent, so actual cash into the business will be £8.4m. If the new owner of the properties attains planning permission for residential properties at Murray Park within three years of the deal being signed, a provision releases the RFC from having to repay the outstanding portion of the loan. If planning permission is achieved after three years, no element of the loan is forgiven. Rents will be guaranteed from ticket receipts and a first charge on the season tickets income will be granted. RFC has the option to buy-back the stadium (only). If the stadium is bought-back in year one the cost will be £10m. Thereafter the purchase price will increase by 12% p. a. until year 10. After year 10 the right to buy-back the stadium will be at “Market Value but no less than £20m”. Should RFC buy-back the stadium, the lease will remain in place for Albion Car Park at a rate of £250k p. a. (subject to same rent review arrangements). This will generate enough cash to see out the season. Sell Ibrox, Murray Park & Albion carpark for £7m, then have an option to buy back Ibrox ONLY for £10m within the 1st year - didn't know that Wonga were now doing property deals???? I'm not the greatest financial mind out there (constantly skint), but even I can see how bad a deal that would be.... 0 Quote Link to post Share on other sites More sharing options...
der Berliner 3,290 Posted August 16, 2013 Share Posted August 16, 2013 Yeah ... sell it for a cheap 10m to King, who lets us play there for free until the end of the season, with the obligation that Green and Co. leave the ship next summer for good. (Looking for the correct smiley to end that line of thought now.) 0 Quote Link to post Share on other sites More sharing options...
Davie P 4 Posted August 16, 2013 Share Posted August 16, 2013 Lifted from a Rumour site: Sell Ibrox, Murray Park & Albion carpark for £7m, then have an option to buy back Ibrox ONLY for £10m within the 1st year - didn't know that Wonga were now doing property deals???? I'm not the greatest financial mind out there (constantly skint), but even I can see how bad a deal that would be.... Seems to me that there is a huge amount of detail in there for a rumour. Hope to God I'm wrong. 0 Quote Link to post Share on other sites More sharing options...
BrahimHemdani 1 Posted August 16, 2013 Share Posted August 16, 2013 The lunatics must be running the asylum now if this is anything more than an elaborate hoax. You would need to be utterly desperate to sell three long term assets to generate enough cash to see out the season, quite apart from the figures not making sense. There are more holes in this than (well make up your own metaphor). 0 Quote Link to post Share on other sites More sharing options...
Zappa 0 Posted August 16, 2013 Share Posted August 16, 2013 It's got to be nonsense. 0 Quote Link to post Share on other sites More sharing options...
aweebluesoandso 290 Posted August 16, 2013 Share Posted August 16, 2013 One side or the other throws these hypothetical scare stories out to the internet to frighten the Bears. Even if it doesn't scare the more clued up Bears it keeps the pot stirring. 0 Quote Link to post Share on other sites More sharing options...
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