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Stadium refinancing idea

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L1lyBrown said:
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.
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no it wasnt..there was zero momney recived upfront for maja..the upfront bit was set against money safc owe the buyer for a player signed years ago..girgg was £3m ufron maja was nowhere near that up front..and we got no cash for maja..
did he buy safc for below book? nit sure if it was below..but it would be a slose run thing..so you are calling the owner a liar when he said he had to pout money in to sign crigg?
 

kildaremackem said:
no it wasnt..there was zero momney recived upfront for maja..the upfront bit was set against money safc owe the buyer for a player signed years ago..girgg was £3m ufron maja was nowhere near that up front..and we got no cash for maja..
did he buy safc for below book? nit sure if it was below..but it would be a slose run thing..so you are calling the owner a liar when he said he had to pout money in to sign crigg?
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£3million up front? If he paid that much up front he deserved to be out of pocket
 
L1lyBrown said:
£3million up front? If he paid that much up front he deserved to be out of pocket
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well uts his momney..grigg has done more in league one than maja. two or three times more..so he should be two or three times the privce..and grigg has done more in the champo..
spo are you sayi g stewrat lioed? why doint you listenb to the podcast instead of defaming the guy?
 
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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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.
 
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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I'm in mate
 
kildaremackem said:
no it wasnt..there was zero momney recived upfront for maja..the upfront bit was set against money safc owe the buyer for a player signed years ago..girgg was £3m ufron maja was nowhere near that up front..and we got no cash for maja..
did he buy safc for below book? nit sure if it was below..but it would be a slose run thing..so you are calling the owner a liar when he said he had to pout money in to sign crigg?
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:lol:
 
gipetto said:
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.
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Most businesses, in their infancy, go bust. The most successful business man I know has had a string of businesses go bust - this isn't untypical for entrepreneurs. The ones that have been successful offset the failures. Mortgaging the stadium to start a new business is a big risk. It may pay off, it might not. The idea of not jeopardising one business to gamble on another is a good one. it's referred to as 'not betting the farm'. Mortgaging the stadium i.e. putting the club £40M in debt for no on-field gain (because, SAFC is a football club) falls into the category of 'betting the farm', for me.

That said, if he reckons he can make it work, then, it's his club, so he has the right to do what he thinks is best for the club. He bought the ball, so he can play with it however he wants to.
 
Most clubs don't pay the full amount up front. It's spread across a few years. So I doubt the grigg money was a 3m quid bank transfer like.
 
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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Sunderland’s football club
Sunderland’s stadium

If it’s been mortgaged for investment then it should be in Sunderland
 
DH1 said:
Most clubs don't pay the full amount up front. It's spread across a few years. So I doubt the grigg money was a 3m quid bank transfer like.
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SD mentioned short term installments. So yes not all upfront.
 
kildaremackem said:
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..
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How is he 20m down

kildaremackem said:
no it wasnt..there was zero momney recived upfront for maja..the upfront bit was set against money safc owe the buyer for a player signed years ago..girgg was £3m ufron maja was nowhere near that up front..and we got no cash for maja..
did he buy safc for below book? nit sure if it was below..but it would be a slose run thing..so you are calling the owner a liar when he said he had to pout money in to sign crigg?
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Had we not sold Maja we'd still owe that money.....

It's called spin.

chunkylover53 said:
And the cash flow
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What's the yield?
 
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