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Stadium refinancing idea

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beam1234 said:
:lol: Love the financial consultants of the SMB. SD’s ideas are complex and multi dimensional SMB answers are simple and one dimensional. Still don’t let it stop anyone giving their worthless two penneth worth.
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The most simple ideas and answers are usually the better ones.

Economists and banks messed up in 2008/9 while most normal households stayed solvent by spending less than they earned.
 

Ashley In!! said:
Yep. I want to start a hotel project and I'm going to use the football club as security for it. Absolutely no chance mate.
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Does he not mean they are owned by the club and all the profits go to the club.

We are never going to compete with the big clubs in terms of shirt sales, sponsorship deals etc so maybe investing club money into something that would make the club profit is a good idea.

Obviously does depend on if it would be owned by the club and if its a loan against the stadium and is paid back or to sell part of it.

If he can make a success of it and it's for the good if the club and not him I'd be happy with it.
 
Coventry City went down that route look at the mess they are in.

Ground owned by wasps rugby club and they pay wasps to use the ground.

Dreadful idea tbh
 
young2077 said:
Does he not mean they are owned by the club and all the profits go to the club.

We are never going to compete with the big clubs in terms of shirt sales, sponsorship deals etc so maybe investing club money into something that would make the club profit is a good idea.

Obviously does depend on if it would be owned by the club and if its a loan against the stadium and is paid back or to sell part of it.

If he can make a success of it and it's for the good if the club and not him I'd be happy with it.
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Until the time comes when they end up.selling the club and want to keep the hotels as part of the deal, i think the whole thing is fishy myself
 
young2077 said:
Does he not mean they are owned by the club and all the profits go to the club.

We are never going to compete with the big clubs in terms of shirt sales, sponsorship deals etc so maybe investing club money into something that would make the club profit is a good idea.

Obviously does depend on if it would be owned by the club and if its a loan against the stadium and is paid back or to sell part of it.

If he can make a success of it and it's for the good if the club and not him I'd be happy with it.
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Do it without latching the debt onto the club then. Or don't do it at all. It's a shocking and equally concerning idea.
 
robbied1 said:
Until the time comes when they end up.selling the club and want to keep the hotels as part of the deal, i think the whole thing is fishy myself
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There’s a part of me that doesn’t trust the new owners, don’t know why but I have an awful feeling they are going to fuck the club over at some point
 
mcq10 said:
There’s a part of me that doesn’t trust the new owners, don’t know why but I have an awful feeling they are going to fuck the club over at some point
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I cant disagree mate, sometimes i listen to the podcasts and cant help but thinking he sounds like a dodgy salesman trying to pull the wool over our eyes. This hotel idea is ridiculous, they are not here to gamble with our futire, they were supposed to be coming in to stablise us. I must admit this whole idea worries me
 
young2077 said:
Does he not mean they are owned by the club and all the profits go to the club.

We are never going to compete with the big clubs in terms of shirt sales, sponsorship deals etc so maybe investing club money into something that would make the club profit is a good idea.

Obviously does depend on if it would be owned by the club and if its a loan against the stadium and is paid back or to sell part of it.

If he can make a success of it and it's for the good if the club and not him I'd be happy with it.
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They'd have to be owned by the club for FFP. Regardless it's too much of a risk. You simply do not risk the club on a hotel venture. f***ing madness.
 
young2077 said:
Does he not mean they are owned by the club and all the profits go to the club.

We are never going to compete with the big clubs in terms of shirt sales, sponsorship deals etc so maybe investing club money into something that would make the club profit is a good idea.

Obviously does depend on if it would be owned by the club and if its a loan against the stadium and is paid back or to sell part of it.

If he can make a success of it and it's for the good if the club and not him I'd be happy with it.
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Donald, Methven and Sartori own "the club". Therefore what "the club" owns essentially belongs to them.

robbied1 said:
I cant disagree mate, sometimes i listen to the podcasts and cant help but thinking he sounds like a dodgy salesman trying to pull the wool over our eyes. This hotel idea is ridiculous, they are not here to gamble with our futire, they were supposed to be coming in to stablise us. I must admit this whole idea worries me
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Not the case. Donald said at the outset it was "an opportunity". Philanthropy was never mentioned.
 
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The Muffin Man said:
Im assuming he is talking about building 4 hotels in places where they are likely to have high occupancy and therefore the best return possible........Like any investment it is a risk but a relatively low risk given you are investing the money in bricks and mortar which mitigates any loss should you ever decide to sell it.



Bugger that, if there is a way of making serious money then deffo invest it in Sunderland but if they are talking about hotels I would like to see them build hotels where the likelyhood of full occupancy is at its highest, probs London/Manchester/Edinburgh/York/Lakes etc......It makes no difference where the money is invested, it is about freeing up money from the stadium to make more money for the squad.....This has to be done with the least risk possible and building hotels in Sunderland is definitely not risk free.
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The hotel idea i agree doesnt have to be in sunderland, however if they could do something in Sunderland, getting more money into our economy would be really benefical for the club and area so would make sense
 
Thurston said:
Build a geet fuck off Velodrome around the Vaux site - we’d probably be able to obtain any number of lottery grants and finance from British cycling and the Olympic lot as to my knowledge it would be the only one between Manchester and Glasgow, thus giving it national attention and meaning it would likely draw in people from all around the northern most parts of the country and elsewhere. Then use the German model of putting on events with DJ’s, live bands, bars, restaurants, franchises, shops and hotels around it. Plus, we can sell the naming rights. Thus, we become something of a ‘sporting club’ with national and international acclaim and generate a load of potential income streams, with the lottery grants and finance from the British Olympic Association buffering a load of the risks on our part.

I literally just had this idea because I’ve been watching track cycling on Eurosport Player, and it’s probably a f***ing terrible idea in practise but seems less risky than refinancing the ground to buy into hotels.
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Visionary
 
Investment / construction of hotels would involve high capital and overheads and would represent great financial risk and exposure. There are investments out there with much less risk and greater margins. If you have £40m in cash and want a decent return you don’t do this with it.
 
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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There are some good deals there, but you have to hit on lucky and keep checking mate.

mcq10 said:
Coventry City went down that route look at the mess they are in.

Ground owned by wasps rugby club and they pay wasps to use the ground.

Dreadful idea tbh
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Scares the crap out of me tbh, but I’m not a business type. Or a speculator.
 
JJH said:
An old school friend is building hotels in the northeast aimed at the budget end so there must be money in it
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I read a Mintel report on the budget hotel sector a few years ago. There appeared to be vast profits to be had if the formula was right. Clearly Premier Inn (Whitbread) have got this formula right and are (have already!) expanding rapidly.

At £10m per site, I think the club would be able to enter the budget hotel space effectively... a cursory scan of some land banks and there are a few sites for development on major arterial routes where the buy + build (inc fit out) cost could be completed under this budget.

I’m no expert in hotel operations, but I notice that Premier Inn ROCE was 15.4% this year...

It’s certainly food for thought. Depends how much they feel comfortable leveraging, I suppose. With the right formula, expansion into the correct sites, with a well managed debt structure, the Club could end up in a very strong position... equally... the club could end up owning a low occupancy shit box or four..,
 
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rjj501 said:
I read a Mintel report on the budget hotel sector a few years ago. There appeared to be vast profits to be had if the formula was right. Clearly Premier Inn (Whitbread) have got this formula right and are (have already!) expanding rapidly.

At £10m per site, I think the club would be able to enter the budget hotel space effectively... a cursory scan of some land banks and there are a few sites for development on major arterial routes where the buy + build (inc fit out) cost could be completed under this budget.

I’m no expert in hotel operations, but I notice that Premier Inn ROCE was 15.4% this year...

It’s certainly food for thought. Depends how much they feel comfortable leveraging, I suppose. With the right formula, expansion into the correct sites, with a well managed debt structure, the Club could end up in a very strong position... equally... the club could end up owning a low occupancy shit box or four..,
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I'd far rather they focused on running a football club.
 
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