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Stadium refinancing idea

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roppa said:
£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.
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I know nothing about such matters unlike SD who clearly does.
Making your assetts generate income does sound sensible though.
 

JJH said:
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.
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Think they are saying £2.5m for all 4. Just over 6% return. They’d probably do better.
 
jsdftm04 said:
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
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Seems like he is concerned that our turnover forecasts won’t be enough to fund a serious promotion push to the premier league. Therefore we need to invest but should we invest £40M on players and hope that pays off or invest in additional businesses to increase turnover which will give further money for player investment? Either way, debt will be involved, but which one has a higher chance of success and sustainability. It’s an interesting discussion I think.

Ch1982 said:
Why listen to a bloke who has made millions in his businesses from nowt when we can rely on the good old SMB experts to put us all right?
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He didn’t start from nowt, but yes he is clearly a successful business man and someone I have a lot of faith in.
 
You know what, I think I will leave that to a couple of businessman who will also be well advised by others, rather than give the opinion of an old bloke, dragged up in the streets of Jarra. Going to school with a haversack, painted with SAFC (look at the punk kids haversack, who the fuck is Blondie?), eventually settling down and marrying a girl from another council estate down South. I’m more, bags to bitches.
 
JJH said:
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.
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I think the 'hotel' thing isn't the point really because it could be anything. It's the business principle I'm wondering about.
 
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.
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Fuck that. We're a football club, not a hotelier.
 
jsdftm04 said:
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
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He’s looking at options to increase revenue / income as a business, making safc more profitable which in turn would allow a higher spend. Thats a bit different to just borrowing money against the stadium to help pay the cost of running the business

SD has been very successful in business, its good that hes exploring all options to improve Safc as a business too imo
 
Ale taster said:
I know nothing about such matters unlike SD who clearly does.
Making your assetts generate income does sound sensible though.
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Our asset, the stadium, does generate money m8, it generates gate receipts, concerts, product sales etc, he's talking about being creative with the assets. Problem is you can only borrow against it once, then you're mortgaged up, and banks don't lend money for nowt. He can't borrow against it, For a speculative business, like hotels, and guarantee return, so to do it is just a gamble, just like my idea of going to vegas with a wad of cash.
 
Confucius said:
You know what, I think I will leave that to a couple of businessman who will also be well advised by others, rather than give the opinion of an old bloke, dragged up in the streets of Jarra. Going to school with a haversack, painted with SAFC (look at the punk kids haversack, who the fuck is Blondie?), eventually settling down and marrying a girl from another council estate down South. I’m more, bags to bitches.
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You like me then appear to fall into the financially unsavvy category :lol:
 
Sounded like a basic example he gave not a rounded up business plan. People are getting ahead of themselves.

There will be people who will complain if we mortgage the stadium

There will be people who complain of lack of investment in the playing staff

There will be people who complain about anything and everything the club does.

There were people who complained when we were second top of the Premier League.

There were some who complained after two top 7 finishes, despite it being the best football/time in the last 45 years.

He can't win as there is always be a complainer.

He must be mad to take the shit he has been dealt by so called supporters.
 
robbied1 said:
Ridiculoys thing to say .I think its fair enough for people to have an opinion on this dont you?? At the end of the day its our club too.
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Opinions that are based on facts and verifiable information yes, not sounding off without people knowing what they are talking about no.
 
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.
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If it's that easy to make money from hotels (100 per cent of investment returned within 4 years), why doesn't Donald use his own money or get a bank loan. I don't want him gambling with our biggest asset!
 
seggaman said:
Fuck that. We're a football club, not a hotelier.
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We have to diversify to make more money. We can't be like "brand" Man United putting our badge on loads of merchandise and it sells around the world. It's probably sensible to have a large portfolio which will also make the club more attractive when they come to sell it.

AndrewP said:
Other cities are available.

I think he's going full Monopoly!!
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seggaman said:
If it's that easy to make money from hotels (100 per cent of investment returned within 4 years), why doesn't Donald use his own money or get a bank loan. I don't want him gambling with our biggest asset!
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Why would he have done all this work to get the club on a financially even keel, only then to risk everything? He’s already said that the future security of the club is the primary concern. Whatever is done, if anything, would surely be done in a sustainable and sensible way.
 
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