Falmer Funding

[Simster]

So the bloke isn't that comfortable in front of a camera!!! Neither am i.

To be fair, Perry's job clearly requires media interaction.


In stark contrast to the role of part-time steward.

 

[steward 433]

To be fair, Perry's job clearly requires media interaction.


In stark contrast to the role of part-time steward.

Why does Martins role require media interaction? How many other chief execs do you see in the media? Hardly any because it's usually the chairman!!

 

[BensGrandad]

I am very optomistic about the coming season and am sure that we will get promotion but not so optomisitic about the funding of Falmer. After the hard work put in by many both paid and un paid to get permission for Falmer it would be a great shame if it was all in vain because the club did not have the money or nobody with that kind of money available. Having said that, there is one of the clubs benefactors who could finance Falmer himself and not worry about the cost too much. Whether he would be prepared to do so is another matter.

The simplified maths is that a vast amount of the repayments of the mortgage, probably the majority of it, will come from gate revenue so it would follow that if the costs go up then the money from gate revenue would need to rise; whether it be in actual ticket price or numbers attending and one affects the other, it is an egg and chicken situation.

 

[Simster]

Why does Martins role require media interaction? How many other chief execs do you see in the media? Hardly any because it's usually the chairman!!

Eh? Perry is employed by the club to deliver a stadium. Everybody knows that.

 

[steward 433]

I am very optomistic about the coming season and am sure that we will get promotion but not so optomisitic about the funding of Falmer. After the hard work put in by many both paid and un paid to get permission for Falmer it would be a great shame if it was all in vain because the club did not have the money or nobody with that kind of money available. Having said that, there is one of the clubs benefactors who could finance Falmer himself and not worry about the cost too much.

The simplified maths is that a vast amount of the repayments, probably the majority of it, will come from gate revenue so it would follow that if the costs go up then the money from gate revenue would need to rise; whether it be in actual ticket price or numbers attending and one affects the other, it is an egg and chicken situation.

The funding will not be the issue.

Repaying it might be if we do not get the crowds

 

[Pavilionaire]

I would expect that our break-even crowd figure might have to rise because of the recession causing lower demand.

Albion football is greatly overpriced right now and I don't expect prices to get much cheaper in a £45-£50 million stadium.

In order to get 13,000 fans on a regular basis I believe the style of football we play will need to attract, in time, an additional 3,000 fans alone.

 

[The Large One]

I am very optomistic about the coming season and am sure that we will get promotion but not so optomisitic about the funding of Falmer. After the hard work put in by many both paid and un paid to get permission for Falmer it would be a great shame if it was all in vain because the club did not have the money or nobody with that kind of money available. Having said that, there is one of the clubs benefactors who could finance Falmer himself and not worry about the cost too much. Whether he would be prepared to do so is another matter.

The simplified maths is that a vast amount of the repayments of the mortgage, probably the majority of it, will come from gate revenue so it would follow that if the costs go up then the money from gate revenue would need to rise; whether it be in actual ticket price or numbers attending and one affects the other, it is an egg and chicken situation.

Er, hang on, a couple of things here.

One, several 'tier-one' banks are insterested in this project, but you're not confident?

Two, what rising costs?

 

[The Large One]

I would expect that our break-even crowd figure might have to rise because of the recession causing lower demand.

Albion football is greatly overpriced right now and I don't expect prices to get much cheaper in a £45-£50 million stadium.

In order to get 13,000 fans on a regular basis I believe the style of football we play will need to attract, in time, an additional 3,000 fans alone.

It does depend on what extra revenue the club can generate.

For instance, Brighton & Hove City College is going to be a significant financial contributor to the project.

 

[steward 433]

It does depend on what extra revenue the club can generate.

For instance, Brighton & Hove City College is going to be a significant financial contributor to the project.

As will the stadium naming rights, The £5.3million we have already got from SEEDA, Catering contracts etc

 

[Pavilionaire]

I have every confidence the stadium will be built. If investment can be found to pump into stadia in shiteholes like Derby, Darlington, Coventry and Swansea then, of course, someone somewhere will cover the cost of a stadium in a much more desirable, glamorous location like Brighton.

 

[BensGrandad]

Er, hang on, a couple of things here.

One, several 'tier-one' banks are insterested in this project, but you're not confident?

Two, what rising costs?

1. My bank were interested in lending me £10m to buy my old bosses company but when they saw the figures and really analysed the business they lost interest. The company was subsequently sold to London Inns (Later to become London and Edinburgh Inns) who went into liquidation 2 years after buying his company, so the fact that a bank is interested is no guarantee that they will lend the money.

2. The original cost of the stadium was estimated at £30m it is now, according to people on here, £46m I would assume that is due to rising costs rather than larger profits for the construction company.

 

[steward 433]

2. The original cost of the stadium was estimated at £30m it is now, according to people on here, £46m I would assume that is due to rising costs rather than larger profits for the construction company.

Correct but the costs are decreasing daily as the prices of oil and steel continue to slide.


All 3 companys will put in very competitive tenders as all 3 will want the job to keep thier companys cashflow turning

EDIT: Steel prices down 4% and oil down 0.5% today

 

[The Large One]

1. My bank were interested in lending me £10m to buy my old bosses company but when they saw the figures and really analysed the business they lost interest. The company was subsequently sold to London Inns (Later to become London and Edinburgh Inns) who went into liquidation 2 years after buying his company, so the fact that a bank is interested is no guarantee that they will lend the money.

2. The original cost of the stadium was estimated at £30m it is now, according to people on here, £46m I would assume that is due to rising costs rather than larger profits for the construction company.

1. You're not comparing two similar things. Falmer - a bricks and mortar development - is a far better proposition than a company that the banks could see was on the verge of going bust. The Falmer figures and business plan look good, it would seem. So your comparison holds no water.

2. The £30m figure is irrelevant. All of the negotiations with the financial institutions are being done with regard to the higher figure.

 

[BensGrandad]

1. You're not comparing two similar things. Falmer - a bricks and mortar development - is a far better proposition than a company that the banks could see was on the verge of going bust. The Falmer figures and business plan look good, it would seem. So your comparison holds no water.

2. The £30m figure is irrelevant. All of the negotiations with the financial institutions are being done with regard to the higher figure.

The first instance it was a very succesful company with 15 freehold pubs fully paid for and earning a very good profit. The business was sold in 2000 and the banks foresaw a down turn in pubs and profits for the coming years, with disposable income being spread through other areas than pubs. The company that bought it was a very succesful company but they overstretched their mark and the down turn in pub trade meant that a lot of their tennants and leassees couldnt pay the rent etc and as a result they suffered financially. Who is to say how the attendances at football matches will go during the next 50 or 60 years of a mortgage.

The initial negotiations to ensure that funding would be available would have been made prior to the LDC troubles when the estimated price was £30m and the club were confident then but now the price has risen are they still as confident of being able to repay the loans. This would, I would think, affect the banks attitude to the lending of money.

 

[The Large One]

The first instance it was a very succesful company with 15 freehold pubs fully paid for and earning a very good profit. The business was sold in 2000 and the banks foresaw a down turn in pubs and profits for the coming years, with disposable income being spread through other areas than pubs. The company that bought it was a very succesful company but they overstretched their mark and the down turn in pub trade meant that a lot of their tennants and leassees couldnt pay the rent etc and as a result they suffered financially. Who is to say how the attendances at football matches will go during the next 50 or 60 years of a mortgage.

The initial negotiations to ensure that funding would be available would have been made prior to the LDC troubles when the estimated price was £30m and the club were confident then but now the price has risen are they still as confident of being able to repay the loans. This would, I would think, affect the banks attitude to the lending of money.

60-year mortgage? Bloody hell, no bank is THAT mental.

As a side issue, I don't recall any statements saying that the stadium would cost as little as £30m. The lowest one I ever saw was £44m. I remember that at the Public Inquiry, the club believed it would be borrowing £29m, but I suspect that figure has gone up. Even Steward 433's estimate at £46m (I don't know how he knows, when the final figure hasn't been arrived at yet) SEEMS low, especially as Dick is saying 'over £50m'.

 

[Lord Bracknell]

1. My bank were interested in lending me £10m to buy my old bosses company but when they saw the figures and really analysed the business they lost interest.

That seems to confirm that the "one man" business plan doesn't impress bankers.

 

[BensGrandad]

60-year mortgage? Bloody hell, no bank is THAT mental.

As a side issue, I don't recall any statements saying that the stadium would cost as little as £30m. The lowest one I ever saw was £44m. I remember that at the Public Inquiry, the club believed it would be borrowing £29m, but I suspect that figure has gone up. Even Steward 433's estimate at £46m (I don't know how he knows, when the final figure hasn't been arrived at yet) SEEMS low, especially as Dick is saying 'over £50m'.

How can anybody have the tumerity to argue with you but I am sure that I have read that in the initial stages, when it was first suggested the figure quoted was £30m. I have also read that the mortgage could be for as long as 75 years because if I remeber correctly at the time thjere was a post on NSC about how many people supporting us now would see the day the final payment is made and I stated that none of my children would but hopefully Ben who is 14 would.

Lord B.

The reason that the bank refused it was because unlike London Inns I didnt have property to that value as the 15 freehold pubs would only have been worth about £6m and the bank could see that the licensed trade would struggle during the early 2000s and I am grateful that they did.

Similarly there is no gaurantee that we will get 14k or 15k people in the stadium each game which may make the banks think hard about lending the money which according to TLO is all done and dusted.

 

[The Large One]

How can anybody have the tumerity to argue with you but I am sure that I have read that in the initial stages, when it was first suggested the figure quoted was £30m. I have also read that the mortgage could be for as long as 75 years because if I remeber correctly at the time thjere was a post on NSC about how many people supporting us now would see the day the final payment is made and I stated that none of my children would but hopefully Ben who is 14 would.

'If I remember correctly...' Now you're just making things up.

Your memory isn't you most reliable asset.

You seemed to remember work had to start by December or we'd lose our planning permission as well.

 

[Alex Alex Dawson oo! oo!]

Similarly there is no guarantee that we will get 14k or 15k people in the stadium each game which may make the banks think hard about lending the money which according to TLO is all done and dusted.

But the banks etc won't be lending money to BHAFC to build the stadium; it will be to the Community Stadium Company (a separate legal entity).
The stadium that the CSC will build and then own is neither intended to be just a football stadium nor for the sole use of the Albion (eg Community College Campus).
Who knows who the owners/major shareholders of the CSC might be in 2010 either? I wouldn't be surprised if some of the money raised wasn't swapped for CSC equity (ie shares) at some point - isn't that what a company convertible loan note facility is all about? As has been posted previously, the CSC set up one of these in March of this year (for £30M I think).

 

[algie]

To be fair, Perry's job clearly requires media interaction.


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