Brighton lose bank funding for Falmer, or something similar

[Drizzlecake]

I remember Martin Perry on SCR being repeatedly pressed on the issue about the funding - he, obviously, would not say where the funds were being sourced, but he emphasised the point that the Albions financing was totally ringfenced from any "credit crunch" or bank collapse fallout and all was in place.

If that is what he says, then that should be good enough.

 

[Notters]

I remember Martin Perry on SCR being repeatedly pressed on the issue about the funding - he, obviously, would not say where the funds were being sourced, but he emphasised the point that the Albions financing was totally ringfenced from any "credit crunch" or bank collapse fallout and all was in place.

If that is what he says, then that should be good enough.

 

[Martlet]

There's another (financial - so look away now if not interested) angle to this that might be worth considering.

In the current climate, the amount of debt you can raise for any sort of project, particularly in development phase, is considerably less than it was a year or more back. The original Falmer projections would have been based on the available debt 18 months ago.

The way the debt markets are now, debt for development projects is far more difficult to raise than for developed operational assets.

It strikes me as highly likely that in the face of trying to raise debt when there isn't much available, the Blooms have decided to bridge the financing gap caused by the current conditions, with the view of refinancing the debt (bringing in more bank finance) upon the stadium becoming operational and the debt terms getting better.

This has to be a sound commercial premise, and imho we should be grateful for their support in all of this.

Frankly for DK, MP et al to have made true on their promises, lining up a stadium project with full planning permission, funding and contractors working full pelt right now is bloody impressive, and they've got my full support.

 

[Chicken Runner61]

I can't see what all the fuss is all the time the work is continuing.

I think the fact that Buckingham have started work and are on site at the moment is all that matters.

I suspect that we proved funding was available when we needed to and provided the funds to get the project started when we needed to and will continue to do so so long as we can.

It is quite possible that due to the credit crunch the money that was in place dissapeared but I don't think anyone involved with the club is to blame as there are many organisations that have put on hold or cancelled projects in the last six months.

Just calm down and until you see or have it confirmed that the work has halted don't worry. It is quite possible that someone at the club has had to guarantee payment because the original funding disappeared but they obviously did as the work goes on.

If the crunch continues we may have problems down the line but we shall have to cross that when we get to it.

 

[Steve Foster]

There's another (financial - so look away now if not interested) angle to this that might be worth considering.

In the current climate, the amount of debt you can raise for any sort of project, particularly in development phase, is considerably less than it was a year or more back. The original Falmer projections would have been based on the available debt 18 months ago.

The way the debt markets are now, debt for development projects is far more difficult to raise than for developed operational assets.

It strikes me as highly likely that in the face of trying to raise debt when there isn't much available, the Blooms have decided to bridge the financing gap caused by the current conditions, with the view of refinancing the debt (bringing in more bank finance) upon the stadium becoming operational and the debt terms getting better.

This has to be a sound commercial premise, and
we should be grateful for their support in all of this.

Frankly for DK, MP et al to have made true on their promises, lining up a stadium project with full planning permission, funding and contractors working full pelt right now is bloody impressive, and they've got my full support.

Spot on I say. Do you think that the club should make an announcement on the matter as to the financing? What have they to loose!

 

[Notters]

Spot on I say. Do you think that the club should make an announcement on the matter as to the financing? What have they to loose!

Well I've just said why twice, but if you'd like me to repeat it again...

 

[Knotty]

Spot on I say. Do you think that the club should make an announcement on the matter as to the financing? What have they to loose!

I don't see why they should. If they wish it all to remain confidential, that's their prerogative. It's not a case of having anything to lose, these are confidential matters that need only be known by shareholders, investors, lenders and those involved in planning and building.

It's their company and their stadium, not ours.

 

[The Large One]

Spot on I say. Do you think that the club should make an announcement on the matter as to the financing? What have they to loose!

The confidence of their backers, perhaps?

In reality, we have to play a waiting game - we have no choice in that.

Contracts for all sorts of aspects of the project are still to be signed, and, seeing as we have only just received planning permission, I'd be amazed if the final, final bill has been worked out. Until then, no financing packages are going to be signed off.

When they are, doubtless we'll hear.

 

[Alex Alex Dawson oo! oo!]

Contracts for all sorts of aspects of the project are still to be signed, and, seeing as we have only just received planning permission, I'd be amazed if the final, final bill has been worked out. Until then, no financing packages are going to be signed off.

It was also said at last weeks planning committee meeting, in response to the CPRE whinge about a Business Plan not being publicly available, that this and the associated financing cannot be confirmed until planning permission has been granted (eg no-one's going to sign up to lend you any money unless you have planning consent).

 

[Storer68]

Spot on I say. Do you think that the club should make an announcement on the matter as to the financing? What have they to loose!

and what happens if the price goes down.

the club would want to renegoiate the price of the stadium.

But if they have made a public anuncement now as to how much money they wouldn't be able to. Once the tenderers know have available for the project, you can bet your life that the contractors would ensure that the contracts that had not been signed were priced right up to the announced limit.

 

[Chicken Runner61]

and what happens if the price goes down.

the club would want to renegoiate the price of the stadium.

But if they have made a public anuncement now as to how much money they wouldn't be able to. Once the tenderers know have available for the project, you can bet your life that the contractors would ensure that the contracts that had not been signed were priced right up to the announced limit.

It doesn't work that way. Its not like ordering a kitchen or bathroom and even they normally cost more than quoted when the extras get added on. A lot of the stuff won't be priced until nearer completion. Look at the Olympics or Wembley- why do you think projects like that go over budget.

 

[Steve Foster]

Insider Ask the Club hasn't responded to this post from yesterday?

 

[El Presidente]

Insider Ask the Club hasn't responded to this post from yesterday?

Monday is usually his day off

 

[The Large One]

Insider Ask the Club hasn't responded to this post from yesterday?

He hasn't been on the board today.

 

[Giraffe]

I can't see what all the fuss is all the time the work is continuing.

I think the fact that Buckingham have started work and are on site at the moment is all that matters.

I suspect that we proved funding was available when we needed to and provided the funds to get the project started when we needed to and will continue to do so so long as we can.

It is quite possible that due to the credit crunch the money that was in place dissapeared but I don't think anyone involved with the club is to blame as there are many organisations that have put on hold or cancelled projects in the last six months.

Just calm down and until you see or have it confirmed that the work has halted don't worry. It is quite possible that someone at the club has had to guarantee payment because the original funding disappeared but they obviously did as the work goes on.

If the crunch continues we may have problems down the line but we shall have to cross that when we get to it.

It's what I have being saying since before Christmas and you'd think the way some were reacting on here I was accusing DK of murder!!

 

[Giraffe]

He hasn't been on the board today.

question wqs posted at 2.23pm yesterday, he was on here at 9.49pm last night. So he has seen it. Guess he is spending some time deciding on a diplomatic answer!!!

 

[steward 433]

question wqs posted at 2.23pm yesterday, he was on here at 9.49pm last night. So he has seen it. Guess he is spending some time deciding on a diplomatic answer!!!

Or getting clarification on the facts?

 

[The Large One]

question wqs posted at 2.23pm yesterday, he was on here at 9.49pm last night. So he has seen it. Guess he is spending some time deciding on a diplomatic answer!!!

Or he didn't feel like phoning up on of his bosses and asking him a question he really didn't feel like asking him - nor would he receive any appreciation for asking it - on everyone's day off.

Especially when any answer coming back would almost certainly be responded to a 'that's confidential'.

How many times do people have to be told that the financial situation is confidential, and that therefore we won't be told, and yet that still doesn't penetrate the shallowest of layers?

60 million I guess.

 

[El Presidente]

Or getting clarification on the facts?

Facts? This is NSC, whenever have we let the facts get in the way of a binfest?

 

[steward 433]

Facts? This is NSC, whenever have we let the facts get in the way of a binfest?

Sorry bad me