The credit crunch and Falmer

[warsaw]

Am I the only one getting ever so slightly worried about the current world financial climate and possible effects on funding for the new stadium?

From the BBC website today: 'Investor confidence has been hit by Bear Stearns' problems. Markets from New York to Tokyo have recorded heavy losses in reaction to the emergency bailout of US investment bank Bear Stearns over the weekend.

Today the Bank of England on Monday made an extra £5bn ($10bn) available for UK banks to borrow to ease credit fears. Banks scrambled to access the funds and the Bank of England's offer was nearly five times over-subscribed.'

In a 'normal' financial climate I would expect the banks to be falling over themselves to lend us the money. But now? Not so sure.

Perhaps somebody can re-assure me?:

 

[The Large One]

It's ALL going to be alright.















































Is that OK?

 

[El Presidente]

I don't think any commercial bank would be over keen to lend money to a loss making business such as the Albion regardless of the credit crunch.

In the meantime, I suspect the club is going to use as many alternative sources of funds as possible.

 

[Alex Alex Dawson oo! oo!]

I don't think any commercial bank would be over keen to lend money to a loss making business such as the Albion regardless of the credit crunch.

In the meantime, I suspect the club is going to use as many alternative sources of funds as possible.

The Albion won't own the stadium but will rent it?

 

[csider]

Ask Heather Mills for a contribution??

 

[Bry Nylon]

Its a fair question, and I guess at the moment nobody really knows the answer. Companies that previoulsy offered credit facilities to other businesses are withdrawing such facilities with immediate effect, whilst banks are getting very picky about how and to whom they lend funds, and at what rate.

I guess the Albion face three main issues here. Firstly, if the short / medium term economic outlook is as bleak as being suggested, it is going to be harder and harder to hit the 'breakeven' figure of 12'000, as people find their personal finances squeezed and fortnightly football becomes something of a luxury.

Second, if banks lend you money to buy a house and you can't make the repayments they end up with a house they can sell. Not ideal, but they have a marketable asset. If the Albion default, they end up ...err - a 22'000 seat football stadium in Sussex. Not sure how attractive that proposition would be to a consortium of banks at a time when they are not especially overkeen to lend anyway.

Third, with the construction boom in east London ahead of the olympics, costs of materials and labour are going to be right at the upper end of the scale as there will be huge demand and limited supply.

Having said all that, I'm still confident that the Falmer team will get the funding in place.

 

[warsaw]

Interesting point about construction costs. Could it be possible that construction costs will take a tumble? Maybe some large planned projects will be shelved......

Anyway, thanks TLO for putting my mind at rest: yahoo:











































Is that OK?[/QUOTE]

 

[BensGrandad]

Ask Heather Mills for a contribution??

Is her Ex the only scouse with no interest in football? He could afford to buy his localish club and build the stadium and still not make a big hole in his wealth.

 

[Publius Ovidius]

The only thing that concerns me about the stadium construction is where the steel is going to come from.

we are going to be building a stadium in England when the construction of the Olympic complex is going ahead and India and China are buying everything up at the moment from wheat to feed their pigs to steel to build their Cities.......I am sure I know who is going to have first dibs should their be a squeeze!

 

[Barrel of Fun]

I thought it was going to be an Eco-Stadium made from hemp and wheat.

I wonder what the real cost to us, in terms of increased prices, loss of revenue, renting, Withdean improvements, the planning case and so on, stands at? It is quite conceivable that Archer/Stanley/Belotti, LDC and the SoS have a lot to answer for!

 

[Harty]

I don't think any commercial bank would be over keen to lend money to a loss making business such as the Albion regardless of the credit crunch.

In the meantime, I suspect the club is going to use as many alternative sources of funds as possible.

Do you think we can rule out the Russian mafia at this point?

 

[Scoffers]

The only thing that concerns me about the stadium construction is where the steel is going to come from.

No problem, just ask QPR for the Steel