Structadene

Will Structadene accept payment in bitcoin? Maybe we could all put a tenner in the next big bitcoin thing Elon Musk is driving up and in a few seasons we have enough to pay everyone's season ticket with outside chance of putting the stadium into a supporters trust. :lol:
 
Interesting to see this pop back up. When I was back last I sat next to someone who was pretty well connected in the property market. He told me, the club was offered the ground for around 40m(GBP) & that year on year, that price reduces as the SD contract runs down. So, from a commercial perspective it makes sense for the club to sit and wait as the contract runs down and the value declines. At some point, there will be a willingness to pay an agreeable sum.
 
ianhensman said:
Interesting to see this pop back up. When I was back last I sat next to someone who was pretty well connected in the property market. He told me, the club was offered the ground for around 40m(GBP) & that year on year, that price reduces as the SD contract runs down. So, from a commercial perspective it makes sense for the club to sit and wait as the contract runs down and the value declines. At some point, there will be a willingness to pay an agreeable sum.[/QUOTED

just need a long term plan then - not many owners around like that
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Kenya Cherrie said:
Always remember this from an Arsenal fan on his first visit to our ground.

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How does being a smaller club coming up divisions make you not a football town? What a TART and typical prem arrogance that unless your top 6 you are not real. Like many on here I’ve been all around England and Wales watching us play in the bottom leagues and imo the REAL fans are found in the lower leagues. Easy to support a huge team with tons of success. Try getting up early traveling to some northern dump in the freezing cold to sit in a cattle shed and watch some turgid stuff but still enjoy it
 
The Flying Picket said:
That sounds like the Ryan Fraser and Joshiua King scenario. We let their contracts run down and then got nothing for them. Brilliant business. AFCB may not be business savy, but Structadene certainly are.
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I'm not disagreeing with you about AFCB's apparent business savy (or lack of), however in fairness to the club, they did try and get Fraser on a new contract for some time, and with no one coming in for him, what were they really to do...

Josh King has been done to death also... We took a punt on keeping King to help us stay up and it failed... The club would have been strung up if we let one of our leading line go in the run in to a relegation scrap...
 
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ianhensman said:
Interesting to see this pop back up. When I was back last I sat next to someone who was pretty well connected in the property market. He told me, the club was offered the ground for around 40m(GBP) & that year on year, that price reduces as the SD contract runs down. So, from a commercial perspective it makes sense for the club to sit and wait as the contract runs down and the value declines. At some point, there will be a willingness to pay an agreeable sum.
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It sounds like SD want the club to pay the remaining lease in full plus a hefty residual amount for the freehold. By all accounts (only from what I've read on here tbh) the rent is around £500k pa with 16 years remaining. If that's true the residual amount they want is over £30m, which is way too high. Its not like SD are just going to waive the residual value once the lease runs out and hand it over to the club.
 
SlowDownDerek said:
It sounds like SD want the club to pay the remaining lease in full plus a hefty residual amount for the freehold. By all accounts (only from what I've read on here tbh) the rent is around £500k pa with 16 years remaining. If that's true the residual amount they want is over £30m, which is way too high. Its not like SD are just going to waive the residual value once the lease runs out and hand it over to the club.
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The rent is around £500K now I think, the original deal was £30K per month increasing in time. The lease remaining is 9 years. we have done 16 out of 25 years.
 
SlowDownDerek said:
It sounds like SD want the club to pay the remaining lease in full plus a hefty residual amount for the freehold. By all accounts (only from what I've read on here tbh) the rent is around £500k pa with 16 years remaining. If that's true the residual amount they want is over £30m, which is way too high. Its not like SD are just going to waive the residual value once the lease runs out and hand it over to the club.
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Doesn't really matter how long the current lease is, it's an investment property so it's value is equivalent to all the future leases ( factoring in any cost obligations they have to maintain anything) and any cost or benefit of what happens when it won't be used by someone as a stadium. Therefore, so much of its value is wrapped up in the likelihood of a follow on lease, the amount of such a lease, and what permission they might get (and how quickly) if the club moved and they wanted to turn to housing. Uncertainty over these might make them move their money to something with a more certain return sooner rather than later.
 
ChampagneCherry said:
Doesn't really matter how long the current lease is, it's an investment property so it's value is equivalent to all the future leases ( factoring in any cost obligations they have to maintain anything) and any cost or benefit of what happens when it won't be used by someone as a stadium. Therefore, so much of its value is wrapped up in the likelihood of a follow on lease, the amount of such a lease, and what permission they might get (and how quickly) if the club moved and they wanted to turn to housing. Uncertainty over these might make them move their money to something with a more certain return sooner rather than later.
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Well yes, that's the conventional way of valuing a commercial property but that doesn't fit in with what Ianhensman claims the bloke next to him said, which admittedly doesn't sound right to me.

In fairness though there are complications in this case because the residual value isn't clear. The club is the only likely party that would sign a new lease for the property as it stands and they are also the potential purchaser in this case. They can use this as leverage in negotiations with the threat that they walk away after the lease runs out. The potential of the covenant being lifted is also tied up with the future of the club therefore the value of the property should the club leave is uncertain.
 
If SD really wanted 40m as a purchase price, I wonder if it isn't just some sort of calculation based on, say, how much money would you need to (very conservatively) invest to guarantee perpetual income of at least 500k/yr?
With 40m, you'd be generating that income even with only a 1.25% return. However, SD knows they have the upper hand so wouldn't want to change the deal unless it improved their position. If they got middling or even lower-end market returns on 40m, they'd be averaging a much higher income than they're getting now from rent.
Even 20m with 3% rate of return gets them more money than they're getting now in rent.
 
SlowDownDerek said:
Well yes, that's the conventional way of valuing a commercial property but that doesn't fit in with what Ianhensman claims the bloke next to him said, which admittedly doesn't sound right to me.

In fairness though there are complications in this case because the residual value isn't clear. The club is the only likely party that would sign a new lease for the property as it stands and they are also the potential purchaser in this case. They can use this as leverage in negotiations with the threat that they walk away after the lease runs out. The potential of the covenant being lifted is also tied up with the future of the club therefore the value of the property should the club leave is uncertain.
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Aren't you placing too much emphasis on the strength of a covenant? If afcb didn't exist I'm sure that legal bods, in conjunction with greedy councillors and NIMBY residents could get it overturned quite easily.
 
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