Funding of a potential new stadium

[Black cats lad]

I'm a Sunderland fan and I'm interested in your ground situation.

A new, modern stadium would obviously generate more revenue than the City Ground with extra hospitality, food/drink sales in the concourses, events, concerts etc but how could the club benefit given how expensive stadiums are to build?


Won't the loan repayments eat up any extra revenue generated from the stadium?

Thanks

 

[Strummer]

It doesn’t matter, Forest won’t need it when they’re back in the second tier next season.

 

[Quntib Hollox]

I'm a Sunderland fan and I'm interested in your ground situation.

A new, modern stadium would obviously generate more revenue than the City Ground with extra hospitality, food/drink sales in the concourses, events, concerts etc but how could the club benefit given how expensive stadiums are to build?


Won't the loan repayments eat up any extra revenue generated from the stadium?

Thanks

You’ll find most of us slashing their wrists on the premier league thread.

 

[Mr. Blonde]

You've picked a very poor time to start this thread there

 

[Bonfy177]

Won't the loan repayments eat up any extra revenue generated from the stadium?

I’d imagine we’d incorporate the tried and trusted Derby County model where we get in debt up at our tits then pay back 25p in the £1.

While ya on i need ta have a word about Steve Cooper, personally I wanted shot of him from day one, lad’s a charlatan, doesn’t like pease pudding and reckons Roker beach is average, I wouldn’t touch him, Neil Warnock is available…….just saying.

Thanks

 

[Redemption]

I'm a Sunderland fan and I'm interested in your ground situation.

A new, modern stadium would obviously generate more revenue than the City Ground with extra hospitality, food/drink sales in the concourses, events, concerts etc but how could the club benefit given how expensive stadiums are to build?


Won't the loan repayments eat up any extra revenue generated from the stadium?

Thanks

Yes. And no.

From a cashflow perspective, that's exactly what will happen.

From a PSR perspective, it's revenue.

But, as others point out, it may be moot anyway.

 

[Quntib Hollox]

Put it this way, Newcastle will probably win a trophy before we see any stadium development.

 

[Flaggers]

I’d imagine we’d incorporate the tried and trusted Derby County model where we get in debt up at our tits then pay back 25p in the £1.

While ya on i need ta have a word about Steve Cooper, personally I wanted shot of him from day one, lad’s a charlatan, doesn’t like pease pudding and reckons Roker beach is average, I wouldn’t touch him, Neil Warnock is available…….just saying.

Thanks

Pfffft.

You lack AMBITION, Bonfy.

If we take the Leicester approach, we can buy a new stadium and then only pay 5% of the actual cost.

So a few local businesses go under and the occasional hard working business owner takes their own life due to depression..so what.

 

[Master Yates]

This bloke asks a lot of questions about Forest for a Sunderland fan….


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[Quntib Hollox]

This bloke asks a lot of questions about Forest for a Sunderland fan….


Sent from my iPhone using Tapatalk

Aye we don’t loik strangers round ‘ere

 

[congo_red_49]

Won't the loan repayments eat up any extra revenue generated from the stadium?

Who said we're financing it through a loan?
Seeing as FFP prohibits the owner actually spending on players, he might as well direct his money into the stadium instead. Gotta get that tax write-off somehow.

 

[Chappers85]

Aye we don’t loik strangers round ‘ere

 

[Bryn Gunn]

Put it this way, Newcastle will probably win a trophy before we see any stadium development.

I don’t think the Main Stand will hold up for another half a century…

 

[Cloughie1975]

I don’t think the Main Stand will hold up for another half a century…

Not judging by the sizes of some of the beer guts at the turnstiles.

 

[Rockabilly]

Not judging by the sizes of some of the beer guts at the turnstiles.

Are you talking about Forest or Newcastle, Cloughie?

 

[eh shag]

we won’t be moving - although breakdowns in negotiations are down to the club not Nottingham city council….. NFFC are not an easy organisation to work with in a professional capacity and up until recently have had a bunch of inept puppets in senior positions making decisions on complex matters like stadium expansion and negotiatons on property related matters which they ultimately don’t understand… ask the boat club.

A deal hasnt been struck with the boat club or on the leasehold/freehold of the city ground because NFFC are impossible and irrational and inconsistent not to mention derisory in the proposals made vs real world value. Laughable when you consider what we have spent on the likes of hwang and Biancone being far more than offers made on the freehold of the city ground. Leaking it to the press to put pressure on NCC isn’t going to change the outcome.

If they can’t manage a basic negotiation re above they certainly won’t be able to procur a complex set of events and development of finding, negotiating and securing a new stadium site and actually getting planning consent not to mention getting the damn thing built.

I fully expect no extension of the main stand and no move and continual polishing of what we have

 

[YellowBelly Red]

Going forward, I can see a new state of the art, all singing football stadium costing the best part of £1 billion.

That's some outlay without a strategic long-term plan in place. And that's not something you associate with Nottingham Forest!

 

[Redemption]

Going forward, I can see a new state of the art, all singing football stadium costing the best part of £1 billion.

That's some outlay without a strategic long-term plan in place. And that's not something you associate with Nottingham Forest!

Assuming this is Newcastle's new stadium you're soothsaying?

 

[YellowBelly Red]

Assuming this is Newcastle's new stadium you're soothsaying?

Everton's new ground is going to cost northwards of £750 million, and that was started some years ago,

Obviously there are many variables but these are the mind-boggling figures that we are talking about.

 

[Quntib Hollox]

Everton's new ground is going to cost northwards of £750 million, and that was started some years ago,

Obviously there are many variables but these are the mind-boggling figures that we are talking about.

Who’s actually paying for it? The new owners 777 are shysters by all accounts and owe billions.

 

[Strummer]

Who’s actually paying for it? The new owners 777 are shysters by all accounts and owe billions.

Many of the new stadia in the UK are developments wholly funded by the clubs, offset in part by commercial sponsorship and naming rights (as int he Arsenal‘s Emirates Stadium, for example).

Spurs are also looking for a commercial partner, but to the surprise of absolutely nobody, Daniel Levy has yet to strike a deal with anyone.

Over here, it is much more common for stadiums to be owned either by the local government, wholly, or in part with their tenants, and funding for improvements is done collaboratively (which shares the cost, and the risk).

 

[Notcher]

Who’s actually paying for it? The new owners 777 are shysters by all accounts and owe billions.

There's a clusterfuck coming with them. A lot of their funding stream has been pulled and I believe their credit rating has been downgraded a couple of times over the last few months.

As soon as they start being unable to meet repayments on debt that is going to put a spanner in the works for their proposed purchase. They won't be able to meet the criteria for the fit and proper persons test for a kick off.

You're then left with a club laced with debt well north of £500M. They'll go into adminstration before anyone else buys them. Why pick up a club with a £500M debt to service when you can wait for it to go into admin and repay far less.

 

[Rubics]

There's a clusterfuck coming with them. A lot of their funding stream has been pulled and I believe their credit rating has been downgraded a couple of times over the last few months.

As soon as they start being unable to meet repayments on debt that is going to put a spanner in the works for their proposed purchase. They won't be able to meet the criteria for the fit and proper persons test for a kick off.

You're then left with a club laced with debt well north of £500M. They'll go into adminstration before anyone else buys them. Why pick up a club with a £500M debt to service when you can wait for it to go into admin and repay far less.

Think it’s just a matter of time once 777 are refused by the premier league - probably kick the can down the road this season into next. They seem to be good at that!

 

[Quntib Hollox]

There's a clusterfuck coming with them. A lot of their funding stream has been pulled and I believe their credit rating has been downgraded a couple of times over the last few months.

As soon as they start being unable to meet repayments on debt that is going to put a spanner in the works for their proposed purchase. They won't be able to meet the criteria for the fit and proper persons test for a kick off.

You're then left with a club laced with debt well north of £500M. They'll go into adminstration before anyone else buys them. Why pick up a club with a £500M debt to service when you can wait for it to go into admin and repay far less.

Someone will take it on at those figures. The new ground is at least 3/4 complete and the chance to buy a top end club even if they’re in the championship would entice someone.

 

[Notcher]

Someone will take it on at those figures. The new ground is at least 3/4 complete and the chance to buy a top end club even if they’re in the championship would entice someone.

I can't see it myself. Nobody needs a football club and certainly not one laced with that amount of debt. They'll all wait and hope it goes into admin to pick it up at a fraction. Sad but true.