steward 433
Back and better
Totally different type of project.
We are not borrowing in excess of £360 million are we?
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stadium delayed
- Thread starter newhaven seagull 85
- Start date
Totally different type of project.
We are not borrowing in excess of £360 million are we?
Alex Alex Dawson oo! oo!
Primary data is fact
Really?
According to the Liverpool Echo recently (June) , Kop Holdings Ltd who own Liverpool FC via a fairly tortuous structure, recently reported a loss of £33million for the year ending 31 July 2007.
How do you define "hand over fist" then?
Flavor Flav
Get those trousers off!
Anyone see on Skysports news they had a huge section on the delay, when brighton's stadium was delayed we get nothing
Twinkle Toes
Growing old disgracefully
My heart goes out to the poor Scousers. They must be pig-sick of having to watch their football at that Anfield shithole.. 
Alex Alex Dawson oo! oo!
Primary data is fact
Some quotes from a Liverpool Echo article (June 9th 2008):
"The club’s £350m loans may also have to be refinanced as early as January, meaning another intensive search for backers by Hicks and Gillett may need to begin again almost as soon as the season kicks off."
"The accounts also reveal that the owners wrote off £10.3m when they scrapped the club’s design for a new stadium after their takeover, and the likelihood of work beginning any time soon on the new stadium is remote."
I really don't think you are in a position to be commenting on business matters.
the credit crunch WILL adversely the time scales and cost of the project.
There are 2 major factors why the economic conditions of the moment are not conducive to building a big stadium
1) The rocketing prices of commodities will increase the cost of the project
2) borrowers will be asking lenders to put down more equity now than when the plans were first drawn up.
despite the spin from the club I'm still slightly concerned about how the club will secure financing for this project....
steward 433
Back and better
Financing will not be a problem.
Mendoza
NSC's Most Stalked
On my next update to the land at Village Way North, Falmer
They have now cleared half of the excess cutting, and the field has more of a yellow tinge to it now, rather than its previous green.
Overhead conditions still humid, overcast and dry. The big orange crane in the next field has also rotated through 45 degrees
They have now cleared half of the excess cutting, and the field has more of a yellow tinge to it now, rather than its previous green.
Overhead conditions still humid, overcast and dry. The big orange crane in the next field has also rotated through 45 degrees
Silent Bob
( ͡° ͜ʖ ͡°)
- Dec 6, 2004
- 22,172
This is due to the nature of the takeover though - it was a leveraged buyout rather than some oligarch using his personal fortune - and then the American owners lumped all that debt they used to buy the club, onto the club.
Withdean Wanderer
Banned
Put it on a relative scale though, and throw in the fact that we're LOSING money....
Lord Bracknell
On fire
That's hardly fair. Over the years, some of the Falmer For All team got to be very matey with the Sky Sports reporter who was covering the story. And we still get waves from his cameraman whenever he shows up at Withdean.
Barrel of Fun
Abort, retry, fail
Coming back to your 'credit crunch will not affect the project'.
Surely, we will not get such favourable lending rates if the other part of the business of the lender is suffering (i.e. the housing sector lending) and wil end up costing us more.
steward 433
Back and better
As long as the BoE don't put up interest rates then we should be OK. Infact the banks are more likely to lend as it keeps their money moving and earning!
Lord Bracknell
On fire
Banks make money by lending. Their customers in the housing development business don't want to be borrowing right now. Therefore the banks are desperate to find alternative customers who will borrow. I think that helps the negotiations.
steward 433
Back and better
The Large One
Who's Next?
In this instance, I think I'll take my cue from people who are part - directly or indirectly - of the project, rather than from you, thanks.
Withdean Wanderer
Banned
I thought the credit crunch issue was because the banks had no money to lend?
steward 433
Back and better
No it's because of other economic factors such as inflation, Job market etc
This means fewer people are borrowing money leaving banks desperate to keep their money turning over.
Look at it this way you have 200 cars at £10000 each and you don't sell any you have dead money not earning anything.
Sell each car for £8000 you make less money but at least you make some!!
Alex Alex Dawson oo! oo!
Primary data is fact
OK but that's a decision that the club's owners were perfectly entitled to take isn't it?
Whatever the merits or relevance of the leveraged takeover are, the club itself now owes £350M, will require another £M x Y for the new stadium and the "main" company has recently posted an annual loss of £33M, the majority of which, if not all, is related to the activities of Liverpool FC.
As the original poster said:
"Unlike Brighton though, Liverpool aren't losing money hand over fist while they are still playing at their current stadium!"
I do not fully understand, why NOT being associated to any housing projects and only an exclusively Stadium project is seen as anything that should calm the nerves.
If at present the market dictates that it is unlikely to raise finance as the final selling price might be considerably less than the total cost of building it, therefore ensuring a stonking loss and therefore no willing lender, why is any new stadium seen as insulated from the same analysis.
If you accept that any projected attendance figures might currently seem unlikely, then we must share the same obstacles as others.
At least a repossessed house is an asset that will at some stage return some of its value in the short term whilst probably recovering all of its value over a longer term. There is always an active market for housing.
I am trying to work out why financiers would find a 22,000 all seater stadium an advantage whilst considering lending money to that project ?
If at present the market dictates that it is unlikely to raise finance as the final selling price might be considerably less than the total cost of building it, therefore ensuring a stonking loss and therefore no willing lender, why is any new stadium seen as insulated from the same analysis.
If you accept that any projected attendance figures might currently seem unlikely, then we must share the same obstacles as others.
At least a repossessed house is an asset that will at some stage return some of its value in the short term whilst probably recovering all of its value over a longer term. There is always an active market for housing.
I am trying to work out why financiers would find a 22,000 all seater stadium an advantage whilst considering lending money to that project ?