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BaconButty said:
Not an expert at all but if you borrowed £50m from a bank to fund a extension over 10 years at 4% interest rate you'd be paying roughly £7m a season over the 10 years (I think)
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The full 50m wouldn't all come from the bank.

It can come from sponsors or investors or even KLD's own back pocket.

If you classify it right, the cost of extending the stand wouldn't come off our PSR spend, but the extra income from tickets and merch in that stand would then increase how much PSR spend we could use in the future. So in terms of the team, it's a huge advantage extending the ground.
 
Weststand said:
You could always own the bank that gives the loan facility
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Either way if you maintain Premier League status it would be fine, the question is would it significantly raise revenue? if it would cost £6-7m a year as a business decision you'd ideally want to make more than that every year after costs
 
the earl percy said:
I've said this before in these debates .It's only since all seater stadiums came to be ,that the obsession with empty seats began .Roker at It's peak had a capacity of over 60k ,and nobody ever said it was too big for us
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Having people sitting down certainly makes it more noticable.

On a terrace, if it was 75% full, the crowd would spread out a bit more, enjoy a little more space, and the stand would still look packed full. In an all seater stand, at 75% full there'll be huge gaps where they haven't sold tickets.
 
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Trauntrian said:
The full 50m wouldn't all come from the bank.

It can come from sponsors or investors or even KLD's own back pocket.

If you classify it right, the cost of extending the stand wouldn't come off our PSR spend, but the extra income from tickets and merch in that stand would then increase how much PSR spend we could use in the future. So in terms of the team, it's a huge advantage extending the ground.
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If sold out, it’d likely generate anywhere between £8 and £15 million in terms of revenue over a three year PSR period (dependent on hospitality offerings and season ticket prices). That’s really significant in terms of amortisation or wages.

What’s also not really being mentioned here is also the fact that the south stand actually needs to be modernised.
 
Trauntrian said:
The full 50m wouldn't all come from the bank.

It can come from sponsors or investors or even KLD's own back pocket.

If you classify it right, the cost of extending the stand wouldn't come off our PSR spend, but the extra income from tickets and merch in that stand would then increase how much PSR spend we could use in the future. So in terms of the team, it's a huge advantage extending the ground.
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You're right I'm just using that as an example, not sure we'd get sponsors but if KLD put his own money in I would imagine he would do it as a loan so he could keep his £50m on the books as an asset
 
AndrewP said:
The impact on player recruitment will depend on the aspirations of our owners and how much they're willing to inject into the club.

Infrastructure spend isn't included for PSR purposes so any generated income from an extension would be a positive for PSR, rather than a negative.

If, for example, the owners spend right up to the PSR limits, them investing in the stadium would have no impact on player recruitment. However, if the owners have a set budget within PSR and choose to spend it on infrastructure instead, then this could impact squad investment.
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Thanks for that, makes more sense now.
 
oddbod said:
I couldnt agree more ! !.... but many fans want us to only create more corporate without extra seats be because of the irrational fear of empty seats and the piss taking from other fans about it ..its a very english thing not seen anywhere else in the footy world and personally think its the small minded syndrome our fans need freeing from asap!
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100%
 
BaconButty said:
Either way if you maintain Premier League status it would be fine, the question is would it significantly raise revenue? if it would cost £6-7m a year as a business decision you'd ideally want to make more than that every year after costs
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A box would generate £3k+ vat (these were old prices so not sure what they are now.

Let’s say 15 boxes. That’s 45k per game plus vat.

It’s probably more now and may get more that 15 boxes.

Over 19 games that’s 900k + vat a year.

Additional 5,000 season tickets at £400 ave is 2m a season.

Add a fee hospitality areas, more match by match seats and you could cover the costs and get a profit.

All finger in the air stuff like.

And that’s before you factor in additional rev from events.
 
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Blyth said:
A box would generate £3k+ vat (these were old prices so not sure what they are now.

Let’s say 15 boxes. That’s 45k per game plus vat.

It’s probably more now and may get more that 15 boxes.

Over 19 games that’s 900k + vat a year.

Additional 5,000 season tickets at £400 ave is 2m a season.

Add a fee hospitality areas, more match by match seats and you could cover the costs and get a profit.

All finger in the air stuff like.

And that’s before you factor in additional rev from events.
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A box at premier league level would generate taking into account its an end rather than half way line a conservative guess of £30,000 a season ex vat which is £450k plus 5000 season tickets which at a complete guess including concessions £350 ex vat is £1.75m totalling £2.2m a year. Canny bit short of £6m

After that you’re looking at potential increase in on the day sales of food, drink, merchandise etc
 
Ava Ava Ava said:
Imagine the paper cuts after that……
Lots of talk about affordability of extending but could someone tell us what a say £50 million extension would cost per annum over whatever period would be funded over?

Would it be foregoing a £20 million purchase per year also taking into account say a weekly wage of £50000?

The above scenario would cost the fee plus £12.5m over a five year contract, forgetting about resale value.

We should also take into account the extra income from the new extension but I was more interested in the possible on pitch impact.

I would love to know what the implications for our future squad would be if we did spend £50m now.
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The investment sits outside of PSR limits. So really it’s a question of how much KLD fancies throwing 50m of his own money at it and how much he thinks he would get back when he sells the club.
 
BaconButty said:
A box at premier league level would generate taking into account its an end rather than half way line a conservative guess of £30,000 a season ex vat which is £450k plus 5000 season tickets which at a complete guess including concessions £350 ex vat is £1.75m totalling £2.2m a year. Canny bit short of £6m

After that you’re looking at potential increase in on the day sales of food, drink, merchandise etc
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Isnt structural work to the stadium and its cost not counted in the psr equation?So all the revenue derived from it would help with the psr?..edit ....sorry brix you just beat me to it! ;)
 
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BaconButty said:
A box at premier league level would generate taking into account its an end rather than half way line a conservative guess of £30,000 a season ex vat which is £450k plus 5000 season tickets which at a complete guess including concessions £350 ex vat is £1.75m totalling £2.2m a year. Canny bit short of £6m

After that you’re looking at potential increase in on the day sales of food, drink, merchandise etc
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Aye but the revenue helps PSR. The cost doesn’t have a detrimental effect.
 
Sea to Shining Sea said:
They’re on the planning portal. Unfortunately, the website won’t allow me on to provide you a link.

All included with the designs for the new south stand.
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the plans submitted are the old approved plans from 2005.....these expire after 3 years so the whole process to validate then go through the approval process again has to be done, however the plans are a mirror image of the north and you can see off the cgi pictures (in the objection) that the plan is different design so these will have a complete variation to them by whoever the have to deign the south stand......they have acted to get the plans hurried through because of the sheepfolds site getting built up - Because of that you can confidently say that there are no new plans drawn up yet
 
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