Falmer; The sequence of construction

[The Large One]

But their quoted level of debt was I think £29m. That is not a million miles away from the amount of debt we will be taking on as a club (inc. existing loans). It doesn't matter how that debt got there, it is the repayments that matter. Average Southampton attendance this season is 17,573 and yet they are on the brink of extinction. Can you see us getting that figure in Div 4? And that's not taking lower TV rights and merchandising into account. I don't mean to be doom and gloom but you have to admit it is slightly worrying. Let's put it this way, would you lend the club your life savings right now to fund Falmer?

The point I'm making is that it sounds like - from what the other NSCers are saying - is that the stadium isn't the central reason for their problems. It's the apparent fact that they can't service the debt because they were still spending like they were a Premiership club - and that's what has got them into the poo.

In other words, they'd have been in the poo whether they'd have had a new stadium or not, just that having the stadium means an EXTRA debt to service - not necessarily the main one. By the sounds of things, proper financial management would have steadied the ship.

At least that's the way I'm reading it.

 

[Lokki 7]

The point I'm making is that it sounds like - from what the other NSCers are saying - is that the stadium isn't the central reason for their problems. It's the apparent fact that they can't service the debt because they were still spending like they were a Premiership club - and that's what has got them into the poo.

In other words, they'd have been in the poo whether they'd have had a new stadium or not, just that having the stadium means an EXTRA debt to service - not necessarily the main one. By the sounds of things, proper financial management would have steadied the ship.

At least that's the way I'm reading it.

No doubting they have been poorly manged financially speaking, but they have been out of the prem several years now with no big names remaining. All existing contracts will probably have been agreed in the Football League era rather than the Prem but as you say we have no details so it's pure speculation.

I'm sure Norwich Union thought it was a good and sound loan to Southampton (currently £24m outstanding) back in 2001 but it turned out not to be the case.

 

[Napper]

Isn't our break even figure 12k anyway ?

 

[Icy Gull]

Isn't our break even figure 12k anyway ?

That would depend on what the board are expecting us to pay for tickets I guess. Priced right I reckon we could sell close to that in season ticket sales in our 1st year there as long s we are not in League 2.

 

[Caveman]

How have Huddersfield managed to keep going in the lower leagues? They got a new stadium and have massively under acheived.

 

[Lokki 7]

How have Huddersfield managed to keep going in the lower leagues? They got a new stadium and have massively under acheived.

20,928 average attendance so far this year. If we get that we'll be fine. Reckon we might in the first year of Falmer.

 

[Curious Orange]

I can't believe people are still arguing about the design and cost of the stadium even though it is actually being built!! Now!!

 

[The Large One]

It's not the cost we're worried about.

It's how we're going to pay for it.

Doubtless the figures have been worked out.

 

[ManOnTheRun]

20,928 average attendance so far this year. If we get that we'll be fine. Reckon we might in the first year of Falmer.

Sorry to be pedantic Lokki but their HIGHEST att of the season is 20,928 ... Their ave is actually 13,287.

 

[Curious Orange]

It's not the cost we're worried about.

It's how we're going to pay for it.

Doubtless the figures have been worked out.

I should imagine so... In any case, I would assume that servicing the debt is a problem for the the company that owns the stadium rather than the Football Club itself. The Football Club would merely be a tenant (albeit one who is also a large shareholder).

 

[Lokki 7]

Sorry to be pedantic Lokki but their HIGHEST att of the season is 20,928 ... Their ave is actually 13,287.

Not pedantic at all, quite right. Sorry I was doing 2 things at once and looked at the wrong column. Doh. No wonder my jobs under pressure.

 

[theonesmith]

It's not the cost we're worried about.

It's how we're going to pay for it.

Doubtless the figures have been worked out.

Exactly, I'm pretty sure as someone said earlier in this thread that the whole project isn't an exercise in gambling. If funding is extremely close to being signed off then I'm sure the details will be revealed by the club. Also as others have said there are alternative streams of revenue to be considered- increased advertising, other events, more television screening as it will be much more hospitable to visiting media.

 

[The Large One]

...and a decent bar, please.

 

[Sweeney Todd]

Can't we just trust Mr Knight and Mr Perry to get on with the job and finish it according to the latest timetable? Neither man would gamble with the future of the club. The whole project has been costed and paid for. That is what we have been told. That is the reality.

 

[The Grockle]

anyone who doubts the financial viability of falmer should look at mkdons and stadiummk. Milton keynes is a souless place with little to attract away supporters, mkdons as a club has had to build a fan base from almost nothing yet so far this season they have achieved an average attendance of 10480. This would be the least we can expect imo

 

[Insider]

But Doncasters ground is more than fit for purpose to support Championship football and expandable.

If Hulls ground cost £44m, and that wasnt even their money, can we afford to sadlle ourselves with a 1/3rd extra on top?

I am talking basic commercial sense here, what happens if we are in debt £65m and in Div 1 in 5 years time with crowds of 10,000?

For a start land is much cheaper in Hull, Doncaster and Colchester!

 

[Albion Dan]

I don't know. Are you worried someone is going to pull the plug because we are '£65m' in debt?

Or are you going to take into consideration that the debt will be managed over a given period - 15/20/25 years - and that assuming we keep on track with servicing the debt, we ought to be OK?

Im worried that costs have escalated way beyond the initial numbers and we are going to be hamstrung for generations just trying to service a debt on the ground. It concerns me that there appears to have been no evaluation on how we might be able to make things more scalable in order to make the amounts of cash more manageable should event stake a turn for the worse, and that other clubs appear to have acted maybe more prudently.

Maybe Im wrong but it feels like a big gamble all the time that the repayment is secret.

 

[Lord Bracknell]

Hull City spent much of the 2002/03 season struggling to avoid relegation into the Conference. I expect they thought that their brand new stadium was a complete waste of space.

This year, they managed to cram 24,924 in to watch a league game against Arsenal.

 

[Storer68]

Im worried that costs have escalated way beyond the initial numbers and we are going to be hamstrung for generations just trying to service a debt on the ground. It concerns me that there appears to have been no evaluation on how we might be able to make things more scalable in order to make the amounts of cash more manageable should event stake a turn for the worse, and that other clubs appear to have acted maybe more prudently.

Maybe Im wrong but it feels like a big gamble all the time that the repayment is secret.

Got a mortagage? It the same thing.

and if you think we've got worries, look at Liverpool trying to get to a new ground

 

[Lord Bracknell]

Short of employing Pricewaterhousecoopers to advise the Club on stadium funding issues, what more could they have done to plan for this investment?









Oh.