Garlick new stadium group (1 Viewer)

chiefdave said:

Rotherham's 12K capacity stadium cost £20m to build plus cost of land, planning, legals etc so I would say you're looking at £30m as a minimum. There are no other facilities to sell on or lease to generate money. Potentially you could sell naming rights but I can't see them being worth a great deal. Would anyone invest in a stadium. From what SISU tell us about the Ricoh the actual value for resale will be way below the build cost so how would you make a profit? If it all has to be financed the loan repayments would way above the level of rent that was said to be crippling the club.

Click to expand...

dongonzalos said:

So if it costs 30 million. If we take SISU's lowest debt figure of 30 million. They need to sell it all on for 60 million.

Click to expand...

Grendel said:

As stated on the other thread the debt will be considerably less. Probably £8 to £10 million.

Click to expand...

dongonzalos said:

Please explain this 8-10 million figure

Click to expand...

chiefdave said:

You also need to factor in at least 3 years (I'd say 5 as a minimum, more likley longer) of massively reduced income due to playing at Sixfields as well do it is going to be over £60m they need to sell it for. Of course any buyer has leverage, assuming the bowl at the Ricoh is still available there will be a surplus of stadiums, simple supply and demand tells you that will drive the resale value of the new ground down.

Click to expand...

Grendel said:

See OSB and Godiva's posts - its the debt in the Arvo fund.

Click to expand...

Jack Griffin said:

You forgot the rest. It was about £35M when OSB last analysed the figures, there are more creditors than ARVO, also another sum was borrowed from ARVO recently, the amount has yet to be disclosed, but all the ARVO loans have interest payments attached..

Click to expand...

chiefdave said:

Rotherham's 12K capacity stadium cost £20m to build plus cost of land, planning, legals etc so I would say you're looking at £30m as a minimum. There are no other facilities to sell on or lease to generate money. Potentially you could sell naming rights but I can't see them being worth a great deal. Would anyone invest in a stadium. From what SISU tell us about the Ricoh the actual value for resale will be way below the build cost so how would you make a profit? If it all has to be financed the loan repayments would way above the level of rent that was said to be crippling the club.

Click to expand...