Long-time reader, first-time poster and all that. I’ve been waiting a good while to post this, fully aware of the reactions the stadium will provoke.
Love the “11% interest charged on loans” comment, by the way — only it’s not quite the gotcha you think it is. Knighthead Capital Management ($16+ billion AUM) offered a loan facility to the previous Hong Kong owners as a way for them to diversify their business, secured against the outstanding ownership percentage the Chinese group held in BCFC.
I’ve seen plenty of comments questioning the financing, usually from people who only understand the classic “loan plus interest” model where the lender pockets interest, everyone nods along. Fair enough, that’s the limit of most people’s experience.
But Wagner spelled it out at the open house, Blues are tied into Knighthead’s life insurance and annuity arm ($6+ billion). Suddenly it all makes a bit more sense for anyone with even a passing grasp of finance. Insurance companies are tightly regulated on the liabilities they can take on, and their trick is the age-old “investing the float” strategy — using premiums until claims are due and making money in the meantime. And here’s the clever bit, that float isn’t just idle cash, it’s used to grow the assets inside the insurance company (BCFC), which in turn lets them shoulder more liabilities, expand further, and ultimately add value for the owners. Hardly rocket science, it’s what the big insurance players across the globe have been doing for decades.
“bUt tHe oWnErS WiLl wAnT pAyInG bAcK”
NFL? Why would the NFL come to Birmingham when Tottenham already have the UK games? The original 10-year Spurs contract runs out in 2028, but it’s not long been extended to 2030. Meanwhile, Wagner and Tom Brady have an $800–900 million investment in the Las Vegas Raiders. Just a coincidence, I’m sure. NFL European expansion league, anyone?
For those insisting the plans will never get approved now that would be a pretty embarrassing outcome for a team of around 75 people working alongside Birmingham City Council, fully funded by Knighthead Capital. Eighteen months of effort binned? That would sting, wouldn’t you think?
The exterior of the stadium won’t be everyone’s cup of tea, but one thing’s certain: it’s iconic. The stadium bowl is as steep as regulations allow, and it’ll be the only UK stadium with both a retractable roof and pitch.
Laugh, joke, sneer, and poke fun all you like — but when serious businessmen make investment pledges of this scale, it’s not to keep the squad’s financing stuck in the status quo. The entire sports quarter revenue flows into BCFC’s coffers, making PSR an issue only the Villa blokes cry about.
Enjoy your current ride in the Championship — I genuinely hope you make it to the Prem. FYI, Mike Ashley was perfectly happy owning the Ricoh, as it gave him a tidy return on his initial investment plus all the non-football revenue (concerts, etc.). But I know for a fact there’s already been a meeting about what’s about to be built just down the road in Brum. Which means the Ricoh Arena and Villa Park will be collecting their last few concerts before the Powerhouse opens in 2030.
You can keep the Enemy gigs though.
Why all this effort, you may ask? Because Mike (English teacher) ex–brother-in-law who thought my sister was a punching bag is a regular poster on here, and I know full well the “love” he has for the real Blues. Petty? Absolutely. Do I care? Not in the slightest.
1st and last post, Keep Right On….. (JB)
