Why do our potential investors need to wait for admin to buy the Arena? (7 Viewers)

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Mary_Mungo_Midge

Mary_Mungo_Midge

Well-Known Member
grego_gee said:
very valid point, Stokes cost £30m.
The Ricoh has a big chunk of casino etc on the side, we don't need that basically we just need the grass and the stands.
We have never "rented" the other parts. I am not sure exactly what the rental agreement includes. But relationships between SISU & CCC soured over their tenure particularly during the Olympics when there was talk of CCFC being locked out of offices and in return CCFC putting photocopiers etc away in locked cupboards.
I think CCFC actually decamped the offices into Ryton and I don't know if they ever returned.
In either case the concept that we lease the Ricoh and it is the home of CCFC, is a bit hollow, no wonder we are worse at home than away!
Basically we rent space of the grass and the stands on a daily basis so many times a season!

:pimp:
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With respsct, I disagree with that. ACL's turnover sits circa. £8m. The best option, in my view, is an entity that can buy either partially, or totally that business and run it alongside the football club. The much higher turnover means that FFP doesn't really apply. And a true 365-day venue with a number of income steams is more likely to interest a wider group of investors than purely 'a football club'
 
R

rupert_bear

Well-Known Member
Sub said:
do you have insider information rupert bear?
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I have certain info and have had for a while but am reluctant to put it out on here because you look a twat if it doesn't happen. All i will say this has been bubbling for weeks, i will be surprised if this goes as far as administration but the threat is there shall i say as a lever, but the silence from the sisu camp is a concern
 
grego_gee

grego_gee

New Member
Mary_Mungo_Midge said:
With respsct, I disagree with that. ACL's turnover sits circa. £8m. The best option, in my view, is an entity that can buy either partially, or totally that business and run it alongside the football club. The much higher turnover means that FFP doesn't really apply. And a true 365-day venue with a number of income steams is more likely to interest a wider group of investors than purely 'a football club'
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I was not commenting on what might be good for a business concern, just what CCFC need to fulfill their fixtures, and the reality of what we currently rent!

:pimp:
 
grego_gee

grego_gee

New Member
lordsummerisle said:
Is it correct from the figures that the actual outlay by the council was only £10million?

Talk about capitalistic vultures picking over a corpse to gain huge gains from a distressed entity.

Are Sisu and the council related?
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They are beginning to look very similar!
how many layers of companies and holding companies? do they have accounts in the Cayman's?
I was wondering if anyone could dig up anything out of council committee minutes!...
This will take hours to soak up, if wonder if SISU are reading this forum?

:pimp:
 
chiefdave

chiefdave

Well-Known Member
lordsummerisle said:
Is it correct from the figures that the actual outlay by the council was only £10million?

Talk about capitalistic vultures picking over a corpse to gain huge gains from a distressed entity.

Are Sisu and the council related?
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That's how I've always seen it but I've always assumed I've missed something as people bang on about tax payers money etc when it looks to me like the council put in £10m then had ACL give them £21m for the lease, a pretty good return on investment!

There has to be something we're missing because if you look at it like that I don't see how anyone can think, with the council having put in £10m and ACL having paid £21m for a nearly 50 year lease that £1.2m a year in rent is in any way or was at anytime a good deal. Over the term of ACLs lease that would be £57.6m just from CCFC against ACLs investment of £21m!
 
S

skybluesam66

Well-Known Member
correct -10m council
21m loan acl
20m decontamination ccfc (+sourcing of the 60m tesco investment)

and from that we have a council owned site with a lease to acl, and ccfc as tennants being ripped off
 
S

skybluesam66

Well-Known Member
chiefdave said:
That's how I've always seen it but I've always assumed I've missed something as people bang on about tax payers money etc when it looks to me like the council put in £10m then had ACL give them £21m for the lease, a pretty good return on investment!

There has to be something we're missing because if you look at it like that I don't see how anyone can think, with the council having put in £10m and ACL having paid £21m for a nearly 50 year lease that £1.2m a year in rent is in any way or was at anytime a good deal. Over the term of ACLs lease that would be £57.6m just from CCFC against ACLs investment of £21m!
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and as they say the football side is 7% of income .....
 
S

skyblue2k

Guest
If you read the report, you will see that ACL have to pay super rent to the council when profits exceed a certain level and this can be up to 50% of those profits.
 
G

Gosford Green

Well-Known Member
No ones going to buy us with this rent elephant in the room.

Once the clubs in administration or even liquidation the buyer would be in much better postion to negotiate more realistic rent terms plus the outstanding rent arrears would not be their problem.

Seems the only way forward unfortunately.
 
N

Noggin

New Member
chiefdave said:
That's how I've always seen it but I've always assumed I've missed something as people bang on about tax payers money etc when it looks to me like the council put in £10m then had ACL give them £21m for the lease, a pretty good return on investment!

There has to be something we're missing because if you look at it like that I don't see how anyone can think, with the council having put in £10m and ACL having paid £21m for a nearly 50 year lease that £1.2m a year in rent is in any way or was at anytime a good deal. Over the term of ACLs lease that would be £57.6m just from CCFC against ACLs investment of £21m!
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turning 21 mill into 58 mill over 50 years is nothing special thats less than 2.1% interest
 
grego_gee

grego_gee

New Member
Its supposed to be a football arena for Gods Sake!

not a vehicle for the council to make money!
the tail is wagging the dog!

and CCC/ACL make so much out of SISU being supposed to develop the surrounding deprived area!
it just looks like a £0.5m hole in the budget to develop two hotels on the car parks...
How is that developing a deprived area?

if you look all other football stadiums on googlemaps aerial view
I bet they are all surrounded by car parks! its kinda needed!
:pimp:
 
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italiahorse

italiahorse

Well-Known Member
lordsummerisle said:
Is it correct from the figures that the actual outlay by the council was only £10million?

Talk about capitalistic vultures picking over a corpse to gain huge gains from a distressed entity.

Are Sisu and the council related?
Click to expand...

SISU have put £45M in don't forget.
Regardless of your thoughts on SISU there is no doubt they have kept the club going.
Hopefully they will accept the loss, we can say thank you and they can move on.
 
duffer

duffer

Well-Known Member
skybluesam66 said:
correct -10m council
21m loan acl
20m decontamination ccfc (+sourcing of the 60m tesco investment)

and from that we have a council owned site with a lease to acl, and ccfc as tennants being ripped off
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Erm... where in those books can you see CCFC contributing £20m to land decontamination?

To me, what those books show is a total cost of development of the site of around £120m, and about £60m coming from Tesco. To complete the build ACL borrowed £22m (of which £14m or so was still outstanding to the bank this year, and was taken over by the Council).

CCFC paid a grand total 1.8m of those costs, according to the books shown there, and they couldn't actually afford to buy their share of the ground by the time we left HR, which is why The Higgs Trust had to step in.

You can argue all you want about the fairness of the rent, but the simple truth is that without Higgs and the Council that stadium doesn't get built. To try to paint the Council or Higgs Trust as anti-CCFC seems odd to me, but it's all about opinions I guess.

SISU were offered the 50% share a while ago by the Higgs trust (for what most assume was around £10m), but changed their mind about the purchase and instead went on a rent strike. I presume the same kind of deal would be available to a new purchaser of the club, should one be found.

Personally, I'd have thought £10m to own a half-share in ACL with the value, current turnover and potential profits of the stadium and surrounds is a pretty good deal. Just my opinion though, obviously.

The link again, if you're bored and want something to read over lunch. You'll need to be really bored. ;)

http://moderngov.coventry.gov.uk/Da...08 - Arena Construction Completion Report.pdf
 
J

Jack Griffin

Guest
According to this Tesco funded the site decontamination contract.
http://www.thefreelibrary.com/Site+...NTAMINATION+WORK+COMPLETE,+NOW...-a0100547390

THE first phase in the construction of Coventry's new pounds 60 million, multi-purpose arena is finished.

Environmental specialists have been working to decontaminate pockets of land on the former Foleshill Gasworks site since February in preparation for building to start.

Contractor Edmund Nuttall Ltd has been carrying out the work under the guidance of environmental consultants QDS.

Working with the Environment Agency, the specialists have dug out material from up to four metres down. The matter removed is the normal by-product and residual waste from the gasworks, which opened in the 1820s.

The clean-up operation was funded by supermarket giant Tesco as part of the deal to build a massive store next to the arena site.

Construction proper of the Coventry Arena will now start as soon as a main contractor is appointed in about eight weeks time. The original builder Birse pulled out.

Paul Fletcher, chief executive of Arena Coventry, the joint venture company set up by Coventry City Council and Coventry City FC to deliver the project, said: "The completion of the first phase of work on site is a clear sign that the Coventry Arena is about to become a reality.

Alex Ferguson, project manager for Lincoln-based QDS, said: "We have completed our job within six months.

"That is a very short timescale for a job of this size but we have done it and are now preparing to start similar work on the site which will be used by Tesco."

The Coventry Arena will include a 1,000-seater banqueting suite, 6,000 sq metre exhibition hall, 70-room over- night accommodation, extensive community facilities, a health and fitness club and 90,000 sq ft family entertainment centre and offices.

A 32,000-seater stadium will also be included in the project, which will be the new home for Coventry City FC.

[email protected]
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lordsummerisle

lordsummerisle

Well-Known Member
italiahorse said:
SISU have put £45M in don't forget.
Regardless of your thoughts on SISU there is no doubt they have kept the club going.
Hopefully they will accept the loss, we can say thank you and they can move on.
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Was using the language that those use against evil Sisu towards the nice fluffy council.
 
lordsummerisle

lordsummerisle

Well-Known Member
duffer said:
Yep, looking at the books Tesco paid £42m for the land, and £17m 'contribution in kind'. That £17m seems to meet what's listed elsewhere as the cost of decontamination and infrastructure. So Tesco stuck in £59m overall, to the total budget of around £116m.
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Always seem to remember a figure of £20 million being banded about as being paid by the club for the decontamination.

If not the case, then the age old question relating to Richardson's reign becomes even more pertinent.

"What happened to the fucking money??"
 
S

skyblue2k

Guest
The Richardson interview about the 20 million

The deal for the Ricoh Arena

WHATEVER people think of Richardson, he was the man with the vision for the club to own a state-of-the-art new stadium that would make money seven days a week, 52 weeks of the year.

“The stadium was my big vision but it was never my vision that the club wouldn’t own it,” said the former City chief who, remarkably, has never set foot in the Ricoh Arena.


“I have no idea what happened after I left. I can show you the document where I did the deal with the Tesco chairman directly.

"We bought 88 acres from British Gas.

"I sold 30 of the 88 acres where it is now for £66.5m which was the highest price Tesco had ever paid for an out of London site. And there were no fees so the club didn’t pay anyone because I did it direct with Tesco, and that saved the club £3m in fees.

“I don’t know what happened after that but before long the whole thing had gone to the Higgs Charity and the Council.

"So I don’t know, did Tesco pay the money direct to the council? I’ve no idea. I’d love to know and to be honest the supporters should know because it was a huge deal at the time.”

It is understood that Richardson bought an option to buy the Foleshill gas works site but when that option ran out and he couldn’t raise the money to pay British Gas, the council stepped in and bought the land for £20m - including £12m to decontaminate it – and then sold it to Tesco, using the £40m profit to part-fund the construction of the stadium.

Richardson admitted: “I had left when the final deal was done, but that was going to be the best asset ever for the club.

"That was going to be the bedrock of the future of Coventry City Football Club and for some extraordinary reason that all went by the by and I have never, to this day, understood – and neither have I asked to be honest – why that ever happened.



Read More http://www.coventrytelegraph.net/co...an-richardson-92746-30844065/3/#ixzz2O04cYGoT
 
oldskyblue58

oldskyblue58

CCFC Finance Director
Think the key parts are that BR had gone when the deal was actually done "I had left when the final deal was done"

followed by "It is understood that Richardson bought an option to buy the Foleshill gas works site but when that option ran out and he couldn’t raise the money to pay British Gas, the council stepped in and bought the land for £20m - including £12m to decontaminate it – and then sold it to Tesco, using the £40m profit to part-fund the construction of the stadium."

so the reality is that BR owned an option on land that lapsed, neither BR nor CCFC had the money to do the deal, so they didnt do the deal, quite probably were not actually part of the deal that was done because they didnt have the funds to be part, and BR had gone by the time any deal was signed and done.

wonder where the £3m saved went ....... was it paid directly by Tesco rather than the Club perhaps :thinking about:
 
Nonleagueherewecome

Nonleagueherewecome

Well-Known Member
lordsummerisle said:
Always seem to remember a figure of £20 million being banded about as being paid by the club for the decontamination.

If not the case, then the age old question relating to Richardson's reign becomes even more pertinent.

"What happened to the fucking money??"
Click to expand...

No wonder he insisted on those confidentiality clauses! He looked so happy & healthy when the CT dug him up last year...hmm, he's probably had a lot of "missing" money to live on.
 
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