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Stadium refinancing idea

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ajryan86 said:
Can it guarantee 2.5 million a year per hotel? I think that will only be with further investment in the city of Sunderland to make it a place to visit. I'm sure with some European grants to improve the city it will make life easier... oh hang on. Although with brexit and global warming we could make Roker the Benidorm of the North.
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Absolutely no chance.....£2.5m profit a year no way
 

West_Winger said:
Exactly this.

If they’re talking about selling off part of our assets to finance the team that doesn’t inspire much confidence in me.

It took Leeds nearly 13 years to take back ownership of Elland Road after they had to sell up. The whole point of them buying Sunderland in the first place was that we owned our ground and we owned the academy.

This makes me feel uncomfortable tbh. Imagine if Short had come out and said this - we’d be up in arms.
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I got torn apart the other day for saying I’m getting an uncomfortable feeling from the owners lately
 
Beery said:
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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Who would own it?
 
I think it's a bit too early for such ideas. We don't really know our hierarchy that well so I'd rather they concentrated more on football matters.
 
We could have bought the Ramside and Seaham Hall with the amount of money we’ve paid on rooms in the last few years. And that’s just for Robbie Keane.
 
EchoMan said:
That’s not a bad idea business wise.

The club has an asset that stands empty most of the time and doesn’t make a return. Use some of the asset value to generate more return on capital employed.

Just need to make sure that they don’t lose control of the SoL and that they invest in profitable hotels.
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How is the ground worth 80 million?
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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Hold on fella i thought donald and santi had enough dosh to finance us up the league towards the premiership .....sounds like they want to increase their portfolio by using the clubs assets ...some rethinking needs to be done here me thinks!
 
AndrewP said:
Didn't they pay £40m for the club?
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Dunno. I think, but, I'm not certain, that the new owners owe Short £40M, rather than them paying £40M. I was under the impression that the parachute payments would cover this, with club assets as security.
 
Confucius said:
He just gave hotels as an example didn’t he?
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This. Don't know if all these financial experts commenting on this even listened. He said someone said to him the stadium is worth £80mill. You could borrow £40mill on it and invest it in the team (if needed). He said he wouldn't want to go down that route. He'd rather invest in other businesses that make a profit. Not necessarily hotels but thats what he used as an example. He didn't even say he was going to do it he just said it was an idea he'd had when people were asking how he could raise cash if he needed to in the future.
 
I’d rather we borrowed against the training ground before the stadium, it’s all risky of course.
 
the dude said:
This. Don't know if all these financial experts commenting on this even listened. He said someone said to him the stadium is worth £80mill. You could borrow £40mill on it and invest it in the team (if needed). He said he wouldn't want to go down that route. He'd rather invest in other businesses that make a profit. Not necessarily hotels but thats what he used as an example. He didn't even say he was going to do it he just said it was an idea he'd had when people were asking how he could raise cash if he needed to in the future.
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To be fair it's a good idea, the more steady income streams we can generate can only be good for the club just as long as these ideas are invested into the local area. I still think a bar and restaurant (pub grub) would go down well next to the ground. Suppose it would be dependent on whether a match day would generate enough money to cover the quieter week days
 
Gotta love the smb. Any subject and suddenly we're all in the know. SD as far as I'm aware is the financial expert.
 
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