Stadium refinancing idea

[L1lyBrown]

Sheer madness to mortgage the stadium.
What happens if interest rates spiked because of a run on the currency or anything else.
If there is a way of guaranteeing a 25% return any lender/bank would fall over themselves to loan on the assets, (the hotels).
Worrying that a few months after getting the club for a song they openly float the idea of using the assets for some hare brained idea.

 

[Deleted member 7830]

He can get fucked with ideas like that, leave the stadium alone. He’s already said numerous times he’s not here for the long haul so for me he can raise money for investment another way

Sheer madness to mortgage the stadium.
What happens if interest rates spiked because of a run on the currency or anything else.
If there is a way of guaranteeing a 25% return any lender/bank would fall over themselves to loan on the assets, (the hotels).
Worrying that a few months after getting the club for a song they openly float the idea of using the assets for some hare brained idea.

Aye he’s playing with fire like

 

[Coeus]

Most businesses loan money, especially in their infancy. If Donald can make it work and it means we have additional revenue coming into the club, I don't see why it shouldn't be pursued.

I'm not sure how easily you can relate football to most businesses.

I would be uneasy with it being spent on player wages, having listened to the podcast, if it is to create revenue then I'm all for it as long as it is done well.

 

[viccarlton]

get one in Newcastle and take advantage of the stag and hen do's.

So it’s only classy hotels we’re getting into?

 

[L1lyBrown]

I would hazard a guess and state that not 1 hotel in the universe makes a 25% return on capital p.a.
On the other hand a football club picked up for a song......................

 

[kildaremackem]

I would hazard a guess and state that not 1 hotel in the universe makes a 25% return on capital p.a.

i think the hotesl thing was just off the top of his head as an example..

He can get fucked with ideas like that, leave the stadium alone. He’s already said numerous times he’s not here for the long haul so for me he can raise money for investment another way



Aye he’s playing with fire like

when did he say he inst here for the long term?

 

[L1lyBrown]

i think the hotesl thing was just off the top of his head as an example..

The same rules apply. Any lender would bite your hand off for an asset that produces a return of 25% p.a. because they don't exist

 

[Cumbrian Mackem]

I would hazard a guess and state that not 1 hotel in the universe makes a 25% return on capital p.a.

Lucky to get 10% year in and year out. Be better off building affordable housing and helping out the city first.

 

[L1lyBrown]

He should take his ideas to Dragons Den and f*ck off with ideas to mortgage the clubs future

 

[Chewit]

I'm not happy with the idea of mortgaging the stadium and spending it on hotels. Stupid idea imo.

If he comes up with a good idea instead then Id be all for it.

May as well float the club on the stock market to raise revenue.............

Or do a bit of crowd funding

 

[kildaremackem]

He should take his ideas to Dragons Den and f*ck off with ideas to mortgage the clubs future

well at present he is personally using his money to sign players..and is close to 20m down on his investment..he was just floating an idea..im uneasy about it..but might be persuaed by what he did wirth the money.,.ie if he buys more fixed assets ..then the total asstes of the club rise..

 

[L1lyBrown]

well at present he is personally using his money to sign players..and is close to 20m down on his investment..he was just floating an idea..im uneasy about it..but might be persuaed by what he did wirth the money.,.ie if he buys more fixed assets ..then the total asstes of the club rise..

No he isn't

 

[West_Winger]

well at present he is personally using his money to sign players..and is close to 20m down on his investment..he was just floating an idea..im uneasy about it..but might be persuaed by what he did wirth the money.,.ie if he buys more fixed assets ..then the total asstes of the club rise..

£20 million down on his investment when the club is only forecast to lose £10 million?

Brilliant.

 

[kildaremackem]

No he isn't

si you listen to the pod? where he said he persoanlly had oto pay some of the grigg fee?

 

[L1lyBrown]

si you listen to the pod? where he said he persoanlly had oto pay some of the grigg fee?

Show me the bank statement

 

[kildaremackem]

£20 million down on his investment when the club is only forecast to lose £10 million?

Brilliant.

he has personally put just less than £20m in so far...

Show me the bank statement

so you are saying the owner lied?

Show me the bank statement

the accounts will be published in due course and will revela all..

£20 million down on his investment when the club is only forecast to lose £10 million?

Brilliant.

operasinting losses of £10m boss..doesnt count historic debts like paying trafnsfer fees for players from the past..

Show me the bank statement

oh and ys he had to show the bank statemny to the FA..£50m in liquid assets..not including his savings accounts of the value of his businesses..£50m in publicaaly listed shares and his curremt account..

 

[L1lyBrown]

he has personally put just less than £20m in so far...


so you are saying the owner lied?


the accounts will be published in due course and will revela all..


operasinting losses of £10m boss..doesnt count historic debts like paying trafnsfer fees for players from the past..

He has a club worth a lot more than £20 million for his money. It seems the ground is worth £80 million with no charges on it.

 

[kildaremackem]

He has a club worth a lot more than £20 million for his money. It seems the ground is worth £80 million with no charges on it.

yes but he also paid a purcxhadse price..which was £40m..so he has paid his £40m an put another £20m in..tbats £60m..for a business that hasnt made a profit for a ecade and wont make on this yera or next..asnd all gets gets off fans is threats and accusations that he is lying when he said he had to persoanlly pay for a plyer..
people have to get into tehir head..sunderland afc does not have any money..but stewrat donald does..not the other way around..

 

[L1lyBrown]

yes but he also paid a purcxhadse price..which was £40m..so he has paid his £40m an put another £20m in..tbats £60m..for a business that hasnt made a profit for a ecade and wont make on this yera or next..asnd all gets gets off fans is threats and accusations that he is lying when he said he had to persoanlly pay for a plyer..
people have to get into tehir head..sunderland afc does not have any money..but stewrat donald does..not the other way around..

Businesses come in all shapes and sizes. Houses don't make a profit until you sell them. He has acquired an asset for below the book value and the Grigg price was less than the Maja selling price.

 

[Shandy drinker]

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.

Put sleeping bags on the seats
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