stadium delayed

[steward 433]

BG Because it isn't exclusively stadium use. The college and uni's will be sharing part of the use.

This could still attract a huge sum of money from grants etc

 

[Chicken Run]

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!!

IMHO if you swapped the word sell with lease it would sound more credible.

 

[Uncle Spielberg]

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!!

With respect mate that is not the case. Not at all. People are very keen as much as before if not more so to borrow money, the demand is still there, that is not why the thing has ground to a halt. Banks and lenders do not want to lend money until they know the full extent of the US property and mortgage problems and how far down things are going to go down here.

The big banks and lenders are not desperate to keep their money turning over, quite the opposite, they major banks and lenders have basically written this year off, people say there's a good chance they will write next year off but I think things will improve by late spring 2009.

Lenders will still make profits just collecting the mortgage and loan payments from their existing book, they don't need to lend more money to make a profit.

 

[Uncle Spielberg]

IMHO if you swapped the word sell with lease it would sound more credible.

Steward's analogy is completely flawed I am afraid.

 

[Chicken Run]

Steward's analogy is completely flawed I am afraid.

I know, but he has loads of analogy's so he's bound to be wrong somtimes

 

[Lord Bracknell]

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 ?

Lending money for a community asset (stadium / college) is never going to be assessed by the same criteria as an asset where exclusively private use (housing) is the end product. A bank might even consider becoming a stakeholder in a community asset.

 

[Uncle Spielberg]

Ed I do not know the ins and outs of commercial finance so I am sure you are right

 

[steward 433]

Steward's analogy is completely flawed I am afraid.

Why is it though? Stockturn is one of the key elements of any retail business.

 

[Uncle Buck]

Financing will not be a problem.

If you are going to make comments like this, please back them up with facts.

I know you like to think you know more than the rest of us, so please give some facts.

Thanks.

 

[Uncle Spielberg]

Why is it though? Stockturn is one of the key elements of any retail business.

Selling cars and stock is not the same as lending money.

 

[Uncle Spielberg]

If you are going to make comments like this, please back them up with facts.

I know you like to think you know more than the rest of us, so please give some facts.

Thanks.

I think you are correct on this one Piers.

 

[BigGully]

Lending money for a community asset (stadium / college) is never going to be assessed by the same criteria as an asset where exclusively private use (housing) is the end product. A bank might even consider becoming a stakeholder in a community asset.

The odd million quid here and there maybe.

But arent we needing them to lend us 10's of millions of pounds ?

Banks aint THAT cuddly. C'mon !!!

 

[Uncle Buck]

I think you are correct on this one Piers.

I feel a tad let turn that you are agreeing with me, please do not let it happen too often...

 

[Uncle Spielberg]

I feel a tad let turn that you are agreeing with me, please do not let it happen too often...

I can assure you it is unlikely to become a common occurence

 

[Chicken Run]

Why is it though? Stockturn is one of the key elements of any retail business.

Yes of course accept the stock we are talking about is capital lending which in the current climate is high risk!!! Hence lending institutions at present would actualy prefer to hang on to their stock

 

[Lord Bracknell]

Ed I do not know the ins and outs of commercial finance so I am sure you are right

Thank you.

As it happens I do speak from some (admittedly second-hand) knowledge. When my old man worked for a bank, they lent money to the Northern Clubs Federation Brewery to build their new brewery at Dunston. The deal involved the bank taking a stake in the business and he ended up as a member of the board of directors.

Running a brewery! It couldn't get any better as far as my family is concerned.

 

[steward 433]

Selling cars and stock is not the same as lending money.

Good stockturn will impress lenders!

 

[Uncle Buck]

Good stockturn will impress lenders!

Well the Withdean attendances are not going to be a good example of good stock turn are they?

Carry on.

 

[Chicken Run]

Good stockturn will impress lenders!

Go up two reps, lenders rationale and risk assesment is a very different animal today than that of 12 months ago!

 

[countrygull]

The odd million quid here and there maybe.

But arent we needing them to lend us 10's of millions of pounds ?

Banks aint THAT cuddly. C'mon !!!

I agree with that: but most of all what this thread shows is that no-one on this board, not one of us, has more than the smallest inkling about the financing of the stadium. It remains cloaked in secrecy for `commercial reasons` - which is fine and necessary. But none of us should therefore be surprised if it does hit problems, because since those financial plans were put in place, the whole finance world has been in turmoil and the rules of 12 months ago are not the rules now. I can't say whether the finances are stable - the only people who can are Martin Perry and the board - and of course their job, outwardly, is to put the best possible shine on things to keep everyone's confidence up. But there must be a chance that the finances, or some part of them, will fall down. I don't know and I certainly hope not - but in this financial climate, there are no certainties.