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Stadium refinancing idea

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Seems to be a lot of people in here that think they know more about running businesses than a multi millionaire business man.

Not surprised like.
 
Slow joe said:
As long as they're reasonably priced. I've often fancied staying at the Hilton after a match with my son but it's like 100 quid a night.
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It’s a top notch hotel, you can get stayovers for £50 some nights
 
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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Why on earth would we effectively gamble using the clubs ground, I’d be livid if the owners did anything like that.
 
This seems to correlate with something I was told a while ago. I didn’t think he would make it public though.

Not sure what to make of it personally. Positives and negatives. I think it would be better to put money into something else to generate funds, and potentially be better for the city, than some hotels though. Not sure we need 4 more hotels.
 
If investing was that easy why isn't everyone getting loans and doing it? What about if there's a massive recession and hotel occupancy rates drop to loss making territory? We then don't make enough to pay the financing back and can't sell the hotels. Crazy idea.
 
If there’s any land to build next door to the training ground we should try building a spa hotel like Rockcliffe! All in the same grounds, whether it’s feasible mind is another thing!
 
Ale taster said:
It generates nothing for 28 days a month. Gates receipts for maybe 3 home games a month and one concert a year. Hotels was just an example - what about the principal ?
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He knows best I think m8, just saying I don't like idea of mortgaging our only asset
 
For clarity, he mentioned hotels (Sunderland as their location was not mentioned) or 'another style of business'. His idea is to try and generate an extra £10m income EVERY year going forward to put into the club. He's pondering ideas on how this could be achieved by investing £40m raised from and being half the value of, the ground.
Anyone interested should listen from 1.08:00 on the podcast.
 
Shack said:
If investing was that easy why isn't everyone getting loans and doing it? What about if there's a massive recession and hotel occupancy rates drop to loss making territory? We then don't make enough to pay the financing back and can't sell the hotels. Crazy idea.
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Simply relax the Hotel rules on "No DSS"
 
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...

They should sell 50% to the city council, it's the biggest attraction in the city .
 
Chucky Puddin said:
If there’s any land to build next door to the training ground we should try building a spa hotel like Rockcliffe! All in the same grounds, whether it’s feasible mind is another thing!
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Probably struggle with planning permission at the AOL.
I would like to see more development on the stadium site. Already some fantastic facilities there with the Beacon, swimming baths and hotel. What else can be built there? Should be looking for the whole site to attract more people. Maybe a restaurant, a bar, already planning on moving the club shop.
I would expect buying the hotel from Ellis was one of the hotels they were considering.
 
at a very simple level £40m over 40 years at 8% is about £3.4m in payments. So each business would use the first £850k pa profits to pay mortgage (0r the first £2.5k per day/every day per business)

Obviously it will be less than this as they would get a better rate and you can claim some/all of the interest back as a business

To me it makes sense to make your asset work if you have a sound investment plan
 
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