Falmer funding....again

[Herr Tubthumper]

The funding was all in place and garanteed before Buckingham signed the
handing over contract.

Is this the case? The last I heard from Perry about 4 weeks ago was that the board had a robust case, no concerns over the funding and it would flow as and when it was needed. The comments did not actually say it was in place.

 

[Arthur]

The contract is between the club and contractor. No one else will get to see it. I wish some people would just get a grip, and accept (for now) that we have been told everything is in place. IF things go tits up further down the line, then rightfully people can point fingers and say " I told you so". But in the meantime the stadium is going ahead as scheduled, and until any announcements, we can expect it to be done in 2011. People are right to be cynical, because it has taken SO long to get this far. If we the fans have been told the funding package is in place, then we have to accept that at face value.

When have we been told everything is in place? Actually when have we been told anything is in place?

 

[The Large One]

A world recession, with the inevitable tumbling of the metal exchanges was on the cards before the contract was signed, so I don't know if the club pushed for any downward adjustment. The arches were abandoned only because of the rise in the steel price, so if the price reverts to near it's former level, we will have lost out big-time.

The contract is signed, and the steel is at a set price. If the price of steel goes back up, it's Buckingham that takes the hit - not the Albion.

 

[RexCathedra]

They may not even take a hit -- Buckingham is a big enough outfit to be able to hedge against a rise in the price of steel...

 

[Gritt23]

If Buckingham were that sure we would not be able to finance the construction, they would not have accepted terms.

Not necessarily true at all. Buckingham and everyone else is keen for some turnover to maintain their business right now. The length of these contracts mean that main contractors can never be 100% sure all with remain financially stable with the client for the whole length of the project, so they just ensure that they are always ahead of expenditure. They'll have arranged a set of stage payments, and agreements on applications for payments that will ensure they would always have made some sort of profit even if it was to come to a halt at any stage.


Not saying any of that will happen, but just pointing out that a main contractor signing a contract doesn't provide any cast iron guarantee that all will be well with the finances. On that score, we just have to take the clubs word for it. They are not obliged to furnish us with the details.

 

[Uter]

One man with very close connections to the club could pay for Falmer and just put a dent in his personal wealth. I am not saying that he will but he could if he wished.

I'm guessing you don't want to say, but who is this?

The only multi-millionaire I can think of with strong links to Brighton is founder of Capita, Rod Aldridge, however I don't know if he has any connections to the club, but he is certainly rich enough to make a substantial contribution to Falmer. He is helping to fund the Falmer academy.

 

[The Large One]

One man with very close connections to the club could pay for Falmer and just put a dent in his personal wealth. I am not saying that he will but he could if he wished.

And if he doesn't wish to, he won't.

Which makes your post kind of pointless.

 

[Lord Large]

I am sure the funding will be ok.

People are right about the Buckingham Group being happy enough as long as they have been given proof Brighton can pay for the first stages etc.

But, having had the best part of a decade to sort it all I am pretty confident Dick Knight et al have every base covered. Money might be tight and we might see a drop in on the pitch investment when the reall building gets underway but the stadium will get finished - which is the most important thing in the long-term.

 

[Giraffe]

Hate to chip in on this but we're just going over old ground again. Simply the whole funding is not in place and this has been confirmed by the club, albeit through insider in my question to Ask the Club.

Insider answered my question on this in December with a direct quote from MP as follows:

The funding is now flowing for the stadium - and the Board have agreed to enter into the building contract because they are now very confident that it has in place a strong business case, which has been supported by independent consultants and advisors, which will give us access to the funding when it is required.

The plan does include a mortgage but the borrowing is at a level which is realistic and affordable even in the current extraordinary conditions in the financial markets.

Giraffe is right in that the heavy expenditure does not commence until next April although we will be ordering the steel very soon to ensure that it is fabricated in time for a commencement on the steel frame next June.

Now this does not mean that we won't get funding, but it does mean all that is in place is sufficient to cover the work that is being done now, hence fair to say funding is flowing.

The key is whether the club will get funding from the banks in the current climate. My guess is that at the moment there is no way, but this might change by June, when the significant stadium work is due to commence, when hopefully bank funding will have thawed a bit or else we are all f***ed.

Sadly because of the delays the club missed the boat a bit and therefore did not have signed up funding in place prior to the bank turmoil. They have therefore had to wait and see what happens.

Either the "individual" who is supposedly funding some of the stadium will have to cough up some more or at least his share earlier or the club will have to hope that banks ease their current funding policies. I suspect a combination of both will enable the club to continue with work, although I think they will need the slack they have built into their timetable to have the stadium ready in on the scheduled opening date.

 

[brighton bluenose]

what concerns me is the way money and work is at the moment for everyone is whether half way through the staduim we get "oh we run out of money"

bhadeb being negative - quelle surprise!!

 

[Nottseagull]

The contract is signed, and the steel is at a set price. If the price of steel goes back up, it's Buckingham that takes the hit - not the Albion.

So you're confirming that the contract price was adjusted to reflect the drop in steel prices?

 

[e77]

In summary, we only know what the club have told us ('funding is flowing'), we aren't going to find out more unless Martin Perry signs up on NSC, gets drunk one night and spills the beans (hello if you're reading, Martin) and even if he did no one would believe him.

 

[The Large One]

So you're confirming that the contract price was adjusted to reflect the drop in steel prices?

I don't know about 'adjusted' - just 'agreed'.

It depends on when in all this palaver the agreement was made.

 

[Nottseagull]

I don't know about 'adjusted' - just 'agreed'.

It depends on when in all this palaver the agreement was made.

I suspect we agreed the price when steel was around its peak, and have lost the arches as a result.

 

[The Large One]

I suspect we agreed the price when steel was around its peak, and have lost the arches as a result.

The price of steel had more than DOUBLED from the original estimate.

It's still way above the original price now - hence the re-design.

That's when you haggle.

 

[The Large One]

The key is whether the club will get funding from the banks in the current climate. My guess is that at the moment there is no way, but this might change by June, when the significant stadium work is due to commence, when hopefully bank funding will have thawed a bit or else we are all f***ed.

I still think you're overlooking one critical point.

The project is a commercial where the risks are vastly reduced in comparison to most projects because the supprting commercial consideration is in education - not a deflated and moribund private housing market. Nor is it in leisure, something else suffering at present. In that sense, because the risk is lower, the proposition would that more attractive to the banks.

 

[BensGrandad]

And if he doesn't wish to, he won't.

Which makes your post kind of pointless.

I was just pointing out that there is money behind the club, which most people seem to disagree about. Nobody knows whether if called upon this 1 individual would stump up the lions share of the costs. The thread asked if we had anybody with the required amount of money close to the club and the simple answer is yes.

 

[wehatepalace]

Who ? Or am I being thick and it's blatantly obvious !

 

[Uter]

Anyone seen 442 this month? They have published a footballing rich list (top 20 below). I haven't seen the full list as you have to buy the magazine to see that. No one associated with the Albion in the top 20 unsurprisingly, but there are a few surprises there (Cheltenham!). Just goes to show having a rich owner is one thing, but having one prepared to invest is another.


1 Sheikh Mansour bin Zayed Al Nahyan (Man City) £15billion
2 Lakshmi Mittal and family (QPR) £12.5bn
3 Roman Abramovich (Chelsea) £7bn
4 Joe Lewis (Tottenham) £2.5bn
5 Bernie and Slavica Ecclestone (QPR) £2.4bn
6 Stanley Kroenke (Arsenal) £2.245bn
7 Alisher Usmanov (Arsenal) £1.5bn
8= Lord Grantchester & the Moores Family (Everton) £1.2bn
8= Dermot Desmond (Celtic) £1.2bn
10= Lord Ashcroft (Watford) £1.1bn
10= Malcolm Glazer and family (Man Utd) £1.1bn
12 Simon Keswick (Cheltenham) £966m
13 Trevor Hemmings (Preston) £900m
14 Mike Ashley (Newcastle) £800m
15 Randy Lerner (Aston Villa) £750m
16 Tom Hicks (Liverpool) £700m
17 The Walker Family (Blackburn) £660m
18 Mohammed Al Fayed (Fulham) £650m
19 Sir David Murray (Rangers) £600m
20 Steve Morgan (Wolves) £400m

 

[Gazwag]

but there are a few surprises there (Cheltenham!). Just goes to show having a rich owner is one thing,

Just because somebody is worth £966m doesnt mean they have liquid assets to put into a football club of £966m. £950m could be in land and property or a valuation of a business asset.