Mags selling their stadium to themselves

[Barista]

They still seem to think they’re getting a new ground and training ground.
Ignoring that the PIF is cutting more costs. Announced just this week that they won’t be funding and hosting the WTA end of season tennis finals after the contract runs out this year, directly due to budget constraints.

 

[DufraisFTM]

Yeah, you'll be right. Didn't realise it was April fools today.

It is. The sad thing is with the way football is going it’s believable.

 

[Thatheaderman]

Didn't the FA want assurances that their takeover had nothing to do with PIF. sure I heard that said, if it was then they have all the proof now to investigate this

Richard Masters interview yes.

He was asked directly that if it is proved that its state owned then what will happen. He said if so , then there'll be repercussions.

Nothing happened , then later it was announced " no more clubs can be state owned".

 

[HarrogateMackem]

Didn't the FA want assurances that their takeover had nothing to do with PIF. sure I heard that said, if it was then they have all the proof now to investigate this

It was forced through by the government (Tory at the time, but I highly doubt any party would have been against this). Everyone know it was a sham, but we wanted greater alliences with the Suadis - still do really with the Iran War.

There is basically zero chance that the FA will be kicking up a fuss.

 

[abbs]

skunks I know couldn't give a shit what these lot do,
only interested in having more money to spend on players

 

[The Shepherd]

Regardless of intentions if Mike Ashley was still in charge and announced this out of nowhere, there would be absolute riots!

They allow the Saudis to do it purely on the hope of buying them success

 

[LambethMackem]

Their shirt sponsorships will be a total scam too. Just so happens that they are all Saudi companies that can pay well above and beyond what others would, inflating their commercial revenues.

 

[PhilY]

How can they value a stadium they have publicly stated they intend to demolish at anything like this price? It doesn't sound like a market value deal

Good point, however, the intention to demolish won’t have been taken into account and obviously it’s got some value currently and there are so few equivalent comparators they’ve got pretty free reign over the valuation.

Plus, presumably the rent payable supports the capital value.

The directors of the buying company would’ve had to have considered the value before approving the transaction.

It looks odd, but probably not anything that will be challenged unless other creditors lose out further down the line.

Their shirt sponsorships will be a total scam too. Just so happens that they are all Saudi companies that can pay well above and beyond what others would, inflating their commercial revenues.

I agree and it annoys me.

The only silver lining is that they would be in for a shock if the PIF completely withdrew, which doesn’t look completely impossible over the next few years.

 

[Zak's Dad]

So what happens if they want to move? Will they still be tied to the t0 year lease?
Who would give the Saudi firm anymore than the land value of the ground less demolition costs and remediation

I believe the land is actually owned by the council and the club have a long lease on it.

 

[Roker Scoreboard]

So what happens if they want to move? Will they still be tied to the t0 year lease?
Who would give the Saudi firm anymore than the land value of the ground less demolition costs and remediation

Is this not so the Saudis have direct ownership of the lease and can now sell that to any potential buyer for an inflated price?
Also remembering that the Gravy stains don't actually own the land the ground sits on, so that's one hurdle they'll face in the future.

 

[Mackemansj1]

Strangely when it's the Saudi's, they don't seem arsed about the club being chipped away at.

Exactly imagine if this was Ashley, no shop front would be safe from a bedsheet.

 

[splorty]

So the stadium was already owned by the sauidis via the company they created to buy the whole club, and they've just sold the stadium to another company they created purely for this purpose.
Same owners, same bloody name on the company. Yet somehow this is perceived as revenue to the club-company without any according loss of value on the balance sheet?

That's just cheating, surely?

Aye. Try getting away with that to HMRC….

 

[Wansbeck Viking]

Exactly imagine if this was Ashley, no shop front would be safe from a bedsheet.

There would be absolute hell on if Ashley done this.

But they dare not criticise the Saudi overlords.

 

[Sassanach]

My feeling is that selling the title deeds to the leasehold is still primarily a PSR dodge however as mentioned above there is the hypothetical consequence that NUFC could be turfed out of its own stadium. What would be interesting is the sublease agreement that presumably now exists between NUFC and the PIF shell company that owns the leasehold title e.g. if/what notice period exists to be served on NUFC to evict them?

This only really becomes an issue if PIF sells NUFC but if they do then it would be a significant concern to their fans and new owners. Disposing of the title will have already devalued the club significantly and reduce what the PIF would be able to sell it for (not that the PIF would mind since they have gained an equivalent asset in the leasehold that is owned by their shell company).

Incidentally, this year also marks the 30th anniversary of when NUFC bottled the title race to Man U so what better way to mark the occasion than give away another title!

 

[ShieldsBlackCat2015]

How do you end up so desperate for cash you will sell something to yourself

I might sell my Sunderland shirt to myself. I’ll buy it for twice what I paid for it.

 

[Safc1987]

Does this mean the new 100,000 seater stadium they need is still on track?

 

[Donnybrook]

Pyoooa corrupshun man. The cartel.

0

I divvent undastand why the richest clerb in the werld would need to do this.

Can’t they spend a billion quid on a new ground and monorail?

You would think the Saudis would fix the swing Bridge and gateshead flyawa, investment in wor reejun n that

 

[Redandwhitedust]

My feeling is that selling the title deeds to the leasehold is still primarily a PSR dodge however as mentioned above there is the hypothetical consequence that NUFC could be turfed out of its own stadium. What would be interesting is the sublease agreement that presumably now exists between NUFC and the PIF shell company that owns the leasehold title e.g. if/what notice period exists to be served on NUFC to evict them?

This only really becomes an issue if PIF sells NUFC but if they do then it would be a significant concern to their fans and new owners. Disposing of the title will have already devalued the club significantly and reduce what the PIF would be able to sell it for (not that the PIF would mind since they have gained an equivalent asset in the leasehold that is owned by their shell company).

Incidentally, this year also marks the 30th anniversary of when NUFC bottled the title race to Man U so what better way to mark the occasion than give away another title!

Its quite common in non league football for the playing side and stadium to be owned by the same person via 2 companies.

Football side runs at a small profit from gates/merchandise, sponsorship and pays a token amount to "hire the stadium". Stadium company then makes money from functions, catering and bar sales.

Its a good model at that level. But I just cant see how it works at PL level because theres no way that commercial revenue will pay players high wages. Especially when you factor in that the new financial rules are based on revenue.

 

[Sassanach]

Its quite common in non league football for the playing side and stadium to be owned by the same person via 2 companies.

Football side runs at a small profit from gates/merchandise, sponsorship and pays a token amount to "hire the stadium". Stadium company then makes money from functions, catering and bar sales.

Its a good model at that level. But I just cant see how it works at PL level because theres no way that commercial revenue will pay players high wages. Especially when you factor in that the new financial rules are based on revenue.

I suppose I just don't see what would be gained from splitting the ownership to two companies there that you wouldn't get from the same company owning both (apart from the PSR dodge). Do you generate more income? pay less tax?

 

[bestguy]

There was a time when corruption was hidden. Now it’s blatantly obvious yet still nothing gets done about it.