• The forums will be unavailable for a few hours on Saturday 6th June, when they do return they will initially be in a degraded state with some features missing, but normal posting/reading will be possible. The main website will not be affected by these updates.
    New user registrations are currently disabled.

Stadium refinancing idea

Status
Not open for further replies.
ajryan86 said:
Can it guarantee 2.5 million a year per hotel? I think that will only be with further investment in the city of Sunderland to make it a place to visit. I'm sure with some European grants to improve the city it will make life easier... oh hang on. Although with brexit and global warming we could make Roker the Benidorm of the North.
Click to expand...
Other cities are available.

Slow joe said:
Concerts and stuff.
Click to expand...

How often do we have those on average?
 

Ginger John said:
Stupid idea IMO. I'm not keen on using the asset of the ground to borrow money. Look what happened to Coventry.
Click to expand...
This is different. They’d be replacing asset value with different asset value.

Imagine living in a git big house that you own outright. You remortgage half and use the money to buy some letting houses to generate an income.

You still own the same value of assets. But now you also have a cash stream.
 
EchoMan said:
This is different. They’d be replacing asset value with different asset value.

Imagine living in a git big house that you own outright. You remortgage half and use the money to buy some letting houses to generate an income.

You still own the same value of assets. But now you also have a cash stream.
Click to expand...
But you would be gambling on the asset value of the hotels, they may be a success but theres every chance they wont be
 
robbied1 said:
Would many people remortgage their house to buy a business?? I know of two people that did and both lost their houses. Its always a gamble, and im not sure the amount of money generated is worth the gamble. The best thing any club can do is own their ground outright
Click to expand...
As I said earlier they’d have to make sure that what they bought was profitable.
 
Lord Potts said:
I am sure Mr Donald can be trusted but he is unlikely to own SAFC for ever. It's what might happen 10 -20 years down the line that concerns me . Quite a few clubs have hit the buffers because they did not own the ground that they played on. Be satisfied that the ground is an asset that the Club can depend upon and has control over raising money on it is not such a great idea.
Click to expand...
I’m sure they would love to get Sunderland back in to the PL and sell up. It would be an amazing return for them.
Once in the PL I can’t see what’s in it for them. As they haven’t got the funds to help us compete and dropping back down would obviously lose value.

As far as the stadium it’s a big risk. Not worth it in my opinion
 
It's concerning that we are talking 10s of millions loans to be able to compete in the championship.

SD didnt sound exactly confident of it
 
Ale taster said:
Just listened to Mr Donald's podcast for the second time and his idea (which is just that at this stage and may come to nothing) of securing £40m of borrowing against half the value of the ground to buy, for example, four hotels at £10m each that would each generate £2.5m per annum to be ploughed straight back into the team to help us compete against other clubs parachute payments in the Championship.
I think this makes perfect sense if done prudently which I trust SD would, but it does expose our ground to an element of risk.
What do the financial savvy think ?
@Grumpy Old Man etc. etc.
Click to expand...
£10m not going buy much of a hotel m8, certainly not one to generate £2.5m profit. I'd rather he took the £40m to vegas, and came back with £80m, a Texas wife and a stid tattoo.
 
ajryan86 said:
Can it guarantee 2.5 million a year per hotel? I think that will only be with further investment in the city of Sunderland to make it a place to visit. I'm sure with some European grants to improve the city it will make life easier... oh hang on. Although with brexit and global warming we could make Roker the Benidorm of the North.
Click to expand...

Tiny flaw in that argument, Marra. !!!
 
Ale taster said:
Just listened to Mr Donald's podcast for the second time and his idea (which is just that at this stage and may come to nothing) of securing £40m of borrowing against half the value of the ground to buy, for example, four hotels at £10m each that would each generate £2.5m per annum to be ploughed straight back into the team to help us compete against other clubs parachute payments in the Championship.
I think this makes perfect sense if done prudently which I trust SD would, but it does expose our ground to an element of risk.
What do the financial savvy think ?
@Grumpy Old Man etc. etc.
Click to expand...
Sounds a good idea but in the real world maybe not .
£10m a hotel would not get you much and it certainly wouldn’t make you £2.5 a year.
Maybe a better chance of building one for £40m in the right location .
I would rather he didn’t risk the stadium
Surprised Bob Murray didn’t have it written in blood when he sold up.
 
Status
Not open for further replies.
Back
Top