New ground for Liverpool ruled out - can we really expect Falmer anytime soon?

[WestStandLad]

Liverpool's dilemma is that to fund the new stadium they need to sell the existing one. And the credit crunch means that no-one is interested in buying it, at the price that Liverpool expected.

Simple, really.

Part of the reason that Liverpool obtained planning permission was that a huge bulk of the exsisting Anfield stadium was to be opened as parkland. The plan is to have some shops, a hotel and a few other developments but the current ground will become 'Anfield Plaza' with 'the pitch' being kept as an open park space. They are not looking to sell the land to anyone nor would they be allowed to.

 

[Lord Bracknell]

Your Lordship

Could you confirm whether the initial infrastructure works to be started in December are being paid for by the club or by the SEEDA grant? Also will the Buckingham Group do these works or a seperate contractor?

Thanks

My understanding (and that is all it is) is that the works starting in December will be paid for by the Club and that Buckingham are the main contractor.

 

[Mendoza]

Liverpool's dilemma is that to fund the new stadium they need to sell the existing one. And the credit crunch means that no-one is interested in buying it, at the price that Liverpool expected.

Simple, really.

they already started work on their new ground though, they had the diggers on site and everything

 

[Lord Bracknell]

Part of the reason that Liverpool obtained planning permission was that a huge bulk of the exsisting Anfield stadium was to be opened as parkland. The plan is to have some shops, a hotel and a few other developments but the current ground will become 'Anfield Plaza' with 'the pitch' being kept as an open park space. They are not looking to sell the land to anyone nor would they be allowed to.

But that is the part of the development that is affected by the credit crunch.

I'll take your word about the ownership of the land. I should have said that it was the development value of the land that was a key factor in raising the funds for the new stadium.

 

[WestStandLad]

But that is the part of the development that is affected by the credit crunch.

I'll take your word about the ownership of the land. I should have said that it was the development value of the land that was a key factor in raising the funds for the new stadium.

That's fair enough. I just thought you meant the sale of the current ground was the bulk/all of the money for the new one.

For the price Falmer is going to cost I'd of thought investors would be falling over themselves to get involved even in the current climate. I just hope the club don't make promises/deals that are going to cripple them in the future. Building Falmer should not be 'at all costs'.

 

[eastlondonseagull]

May have been mentioned on here but I couldn't see it for all the Harty threads...

Rick Parry announced last week that plans for the new ground for Liverpool have been shelved for the time being due to the current economic climate.

If Liverpool are having seconds thoughts what hope do we have for financing Falmer?

Difference is, Liverpool already have a perfectly good stadium. Not worth the risk.

.

 

[Theatre of Trees]

Also factor in the point that the owners of Liverpool are already £105 million in debt just buying the club. The whole move and redevelopment involved rescheduling these initial loans into the cost price of the stadium in order for them to get some return by the end of it.

 

[WestStandLad]

Also factor in the point that the owners of Liverpool are already £105 million in debt just buying the club. The whole move and redevelopment involved rescheduling these initial loans into the cost price of the stadium in order for them to get some return by the end of it.

Hicks and Gillet aren't in debt at all. The club is. Hence the protests up there. The majority of the refinancing debt was placed on a company they set up when they brought the club called 'Kop Holdings'. Kop Holdings have LFC as their only asset so in effect the club took on the entire £350m. Hicks and Gillett are yet to put in a single penny of their own money. It's RBS' money they've used and the club/supporters are the ones who will have to pay it back. No one will lend them anymore in the current climate so the stadium project (Of which they stated on arrival would be "Started in 60 days") is shelved.

 

[Storer68]

Liverpool's dilemma is that to fund the new stadium they need to sell the existing one. And the credit crunch means that no-one is interested in buying it, at the price that Liverpool expected.

Simple, really.

added to which is the Gillette's whole financial arrangement for buying and running Liverpool FC has been one to load it with a huge amount of debt.

the total cost of a new stadium to Liverpool Fc could run to HALF A BILLION
pounds

 

[Cheshire Cat]

Part of the reason that Liverpool obtained planning permission was that a huge bulk of the exsisting Anfield stadium was to be opened as parkland. The plan is to have some shops, a hotel and a few other developments but the current ground will become 'Anfield Plaza' with 'the pitch' being kept as an open park space. They are not looking to sell the land to anyone nor would they be allowed to.

This is essentially true but the arrangements are complicated and getting more so

http://councillors.liverpool.gov.uk/Published/C00000282/M00005789/AI00028954/$SI3NewAnfieldTheRestorationofStanleyPark.doc.pdf

This was the position 2 years ago

http://councillors.liverpool.gov.uk/Published/C00000282/M00005789/AI00028954/$SI3NewAnfieldTheRestorationofStanleyPark.doc.pdf

and this was the position 1 year ago.

Since then Liverpool FC have failed to find the cash for their element of the development, and as a resultthe overall public funding for the whole regeneration of this area of north Liverpool is at risk.

 

[trueblue]

Hicks and Gillet aren't in debt at all. The club is. Hence the protests up there. The majority of the refinancing debt was placed on a company they set up when they brought the club called 'Kop Holdings'. Kop Holdings have LFC as their only asset so in effect the club took on the entire £350m. Hicks and Gillett are yet to put in a single penny of their own money. It's RBS' money they've used and the club/supporters are the ones who will have to pay it back. No one will lend them anymore in the current climate so the stadium project (Of which they stated on arrival would be "Started in 60 days") is shelved.

This, according to Rogan Taylor a couple of weeks back, is the nub of it. It's all about risk. And Liverpool's owners and the club already have so many loans outstanding that they're not a good prospect in the current climate.

That's why Falmer is different. Banks need to lend money to make profits - that's not changed. From what Perry said, let's say Albion will need a 70% mortgage (an entirely unsubstantiated guess)... maybe the banks would rather lend the Albion £45 million, than hand out 300 individual mortgages. If the business plan is strong, it could well be a better bet from their point of view.. and although it sounds like a lot of money, as the last few days have shown, in banking terms it's a drop in the ocean.

 

[scotjem]

I do think we should be making some contingencies in case things get really bad.
During the 1930's Depression the unemployed of Horsham all got together and built a new swimming pool.

So who on here can get their hands on an old JCB ?

 

[dougdeep]

I love the way Richie goes awol, then comes back to ask questions that have been done loads of times before. Perhaps somebody should show him the search facility.