Do we rent the stadium?

[Robot Chicken]

I was having a discussion with someone online and they told me the Albion rent the stadium. I wasn't sure he was right and he posted the following. So what's the situation? Do we pay rent to Tony? Do we pay rent to the council?

windows 7 print screen

 

[Guy Fawkes]

If i've got this right, we do to a holdings (?) company (one of several that control / oversee various parts of the clubs operations) The club is split into several different companies, it's designed to prevent the ground being lost if another part fails and goes bust, limiting risk

 

[Lord Bracknell]

Or does Brighton and Hove Albion Football Club Limited rent the stadium from Brighton and Hove Albion Holdings Limited?

 

[StonehamPark]

Or is it the yearly, interest-free payment, from the club to Tony Bloom?

 

[Thunder Bolt]

Or does Brighton and Hove Albion Football Club Limited rent the stadium from Brighton and Hove Albion Holdings Limited?

That, plus we pay ground rent to Brighton Council as the land is leasehold.

 

[Hillian1]

Simple answer is yes.

We rent it from another company owned by Tony Bloom.

 

[Lord Bracknell]

Simple answer is yes.

We rent it from another company owned by Tony Bloom.

Who is this "we" of whom you speak?

 

[RustyKent]

Who is this "we" of whom you speak?

It is us.

 

[Alex Alex Dawson oo! oo!]

I was having a discussion with someone online and they told me the Albion rent the stadium. I wasn't sure he was right and he posted the following. So what's the situation? Do we pay rent to Tony? Do we pay rent to the council?

windows 7 print screen

Brighton and Hove Albion Football Club Ltd (Regd Company No 00081077) is the legal entity incorporated in 1904. The nature of its business (as listed at Companies House) is "Activities of Sports Clubs" so essentially BHAFC Ltd is the football club. It is also the member of the Football League so therefore it is BHAFC Ltd that has to comply with the rules of the FL, eg FFP.

Your contact is correct; BHAFC Ltd rents the Amex Stadium and the Lancing Training Ground for £1M and £333,333pa respectively (as per the BHAFC Ltd 2014/15 Accounts snapshot) and from The Community Stadium Ltd (Regd Company No 04612364). CSL was set up in 2002 and the nature of its business (as listed at Companies House) is "Operation of Sports Facilities"; the company accounts for 2014/15 state CSL's turnover to be £1,333,333. In the notes to these accounts (under Tangible Fixed Assets - Note 8) it is stated: "Land and Buildings includes the cost of a premium of £5,300,000 payable for the lease of the stadium land. This lease is for a 125 year period from 29 August 2009." Presumably this is the amount that was paid to B&H City Council for the land and it is being depreciated through the CSL accounts at £106,000pa over a 50 year period (like the stadium build costs).

Both BHAFC Ltd and CSL are wholly owned by Brighton and Hove Albion Holdings Ltd (Regd Company No 02649319) in which the majority shareholder is Tony Bloom, with 90%+ of the equity. It is the accounts of this holding company (ie not the football club entity) that are normally published on the club website.

 

[Robot Chicken]

So if the Albion go to the wall, the stadium can't be touched? If Tony Bloom goes bankrupt then the stadium can't also be touched? So it would be available to any phoenix club that might be formed afterwards? Far thinking.

 

[Alex Alex Dawson oo! oo!]

So if the Albion go to the wall, the stadium can't be touched? If Tony Bloom goes bankrupt then the stadium can't also be touched? So it would be available to any phoenix club that might be formed afterwards? Far thinking.

What do you think would happen to his personal shareholding in BHA Holdings Ltd under this scenario?

 

[Lenny Rider]

Rightly put in place to stop any chance of a Falmer Retail Park, I think the phrase once bitten twice shy springs to mind.

 

[El Presidente]

The Stadium is owned by The Community Stadium Company Ltd, which has the same directors as the Albion. All of TCSC Ltd's income comes from renting out the stadium & Lancing to the Albion.

Should the hotel be approved at Falmer I would imagine that it too may be owned by TCSC Ltd, or another subsidiary created.



Brighton & Hove Albion Holdings owns 100% of the shares of Brighton & Hove Albion Ltd and TCSC Ltd.



In the holding company accounts the rental income of TCSC Ltd and the rent paid by B&HA Ltd are offset against each other, so nothing appears in those accounts.

 

[Seagulltonian]

It's all very clever, and hopefully all protected.
Although losing £18 Mill a year isn't the best thing, but it can come off the profit when we reach the promised land of the Premier League in 2017

 

[Mr Putdown]

If Tony Bloom goes bankrupt then the stadium can't also be touched? So it would be available to any phoenix club that might be formed afterwards? Far thinking.

Far thinking? If Tony Bloom were to go bankrupt then the stadium would almost certainly be sold off to the highest bidder seeing as he owns around 90% of the shares in the holding company.

 

[El Presidente]

So if the Albion go to the wall, the stadium can't be touched? If Tony Bloom goes bankrupt then the stadium can't also be touched? So it would be available to any phoenix club that might be formed afterwards? Far thinking.

I recently did some advisory work for a consortium buying an English football club. When asked about my football allegiance I of course mentioned the Albion, and was told that TB is worth 'more than Bet 365'. I can't see him going bust any time soon if that is the case.

 

[Boy Blue]

I recently did some advisory work for a consortium buying an English football club. When asked about my football allegiance I of course mentioned the Albion, and was told that TB is worth 'more than Bet 365'. I can't see him going bust any time soon if that is the case.

How much is Bet 365 worth

 

[cooliobhafc]

Revenue £1.5 billion[1] (2015)

 

[Yoda]

How much is Bet 365 worth

Over £800m in 2013.
http://www.dailymail.co.uk/news/art...assing-925-million-fortune-just-13-years.html

 

[Mr Putdown]

Circa £675m in 2015

https://companycheck.co.uk/company/04241161/BET365-GROUP-LIMITED/financial-accounts