Is A League One Ground Worth Less ? (1 Viewer)

ccfcway · Nov 2, 2011

Just wondering...

If SISU gave AT 2 million to invest and it kept us up, then they looked to buy 50% of the stadium at lets say 20 million, would it not be in their interests for us to go down, and them invest in 50% of a stadium played in by a league one side ?

Even if it was reduced to just 19 million, SISU have saved themselves 1 million and not having to invest in the team whilst in the championship

Without CCFC the stadium has little ongoing income, so it must play a part which league we are in, does it not ?

If the ground ownership was the main aim, then perhaps this is the way they are going about it, they might want us to go down.

Their actions certainly seem that way.

ajsccfc · Nov 2, 2011

Not sure what you mean exactly, but the ground is a facility that is most likely valued regardless of the current status of its tenants.

ccfcway · Nov 2, 2011

so, if we were in the conference, the stadium would be valued as the same as if we were in the Premiership ?

You might be right. but surely with guaranteed extra gate reciepts, sponsorship etc etc the higher up the leagues we are, the more attractive the stadium becomes ?

If they bought the stadium today, it would be based on a 15k turn out most saturdays, if we were league one, would it not be based on 10-11k or something similar ?

ccfcway · Nov 2, 2011

Look at say, the McAlpine (if its still called that). I'm sure that they pay less for sponsorship than the Reebok, mainly because of exposure..

Ricoh wouldnt be too happy at us going down the leagues ?

ajsccfc · Nov 2, 2011

I don't believe whatever the valuation is for the ground is based on our league position. We're tenants paying rent, were it our own property I think it'd be different.

If we were in the conference there'd be fewer people there, but it wouldn't suddenly become a cut-price venue.

ccfcway · Nov 2, 2011

not cut price, but surely less ?

SISU are faced with 2 choices, invest a fair bit of money just to stay in this league and then bid for half of the stadium, or invest nothing, and bid for half of a stadium which will have less exposure and tennants looking to renegotiate rent due to a reduction in their income

ajsccfc · Nov 2, 2011

A more prominent placing would certainly attract more lucrative sponsors, but the notion that relegation would be welcomed as it would eventually drive the sponsorship deal down and by extension the overall value of the half-share in the ground is a little conspiratorial, Ricoh have paid until at least 2015 as it is I believe.

They might be diverting funds that could be used for the team towards the goal of venue ownership, but even they are not machiavelian enough for it to be part of some plot.

ccfcway · Nov 2, 2011

ajsccfc said:
I don't believe whatever the valuation is for the ground is based on our league position. We're tenants paying rent, were it our own property I think it'd be different.

If we were in the conference there'd be fewer people there, but it wouldn't suddenly become a cut-price venue.

If we were in the conference, we could fit in the Butts, and then they wouldnt have tenants at all, and it would be a white elephant !

ccfcway · Nov 2, 2011

ajsccfc said:
A more prominent placing would certainly attract more lucrative sponsors, but the notion that relegation would be welcomed as it would eventually drive the sponsorship deal down and by extension the overall value of the half-share in the ground is a little conspiratorial, Ricoh have paid until at least 2015 as it is I believe.

your perhaps right, but they are only hear for two things, to get us up and sell at a profit, or the ground, and i see no signs at all of the 1st one happening, so you have to wonder

ajsccfc · Nov 2, 2011

ccfcway said:
If we were in the conference, we could fit in the Butts, and then they wouldnt have tenants at all, and it would be a white elephant !

If that were ever to happen, I could see someone buying it outright and completely overhauling it in a similar manner to the o2, it's a prime piece of estate location-wise.

So even the worst-case scenario would increase my chances of seeing Prince play live. Win-win.

chiefdave · Nov 2, 2011

it wouldn't make the ground worth less as we pay rent and assuming there no clause to say if we go up or down the rent changes then it's a non issue. The arena would see a drop in other areas (catering etc) if there were less people there but I would guess at the moment that's a pretty small part of there income and there was some talk that the catering rights were sold on, in which case again it's a non issue.

where it would be a problem is when it come time to renew sponsorships or other contracts. the lower down the league we go the less exposure so the less value there is.

don't really see it being a problem for the arena what division we're in, different story tho if we go bust. A stadium without a team would be interesting. Would it be worth maintaining the stadium for the odd concert or other event?

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