Somebody please help me understand! (1 Viewer)

The Penguin said:

It stacks up like that if you use the alleged final offer made to SISU by ACL for the use of the Ricoh. If you use the currently existing lease terms, it increases the amount of rent we would pay significantly.

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chiefdave said:

Even if you use the current rent we're still £10m better off staying here!

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skybluelee said:

I have stayed well clear of the financial debate so far, as a) I don't understand a lot of it and b) it strikes me that most people on here don't understand a lot of it but post regardless which just makes it all even more confusing.

But in REALLY simplistic terms, doesn't it stake up like this;

£400K rent at Ricoh over 5 years = £2M
Gate receipts, say 10,000 x say £15 x say 27 games over 5 years = £20.25M
Net £18.25M

versus

Say £100K rent at Northampton over 5 years = £500K
Gate receipts, say 3,000 x £15 x 27 games over 5 years = £6.075M
Net £5.575M

Not to mention the generation of fans lost, the reduced sponsorship, the reduced merchandise etc.

And not to mention the FFP rules that will hamstring us meaning we will almost certainly be a Div 4 club in the next year or 2 leading to even smaller crowds, sponsorship, merchandise...

What am I not getting?...

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The Penguin said:

It stacks up like that if you use the alleged final offer made to SISU by ACL for the use of the Ricoh. If you use the currently existing lease terms, it increases the amount of rent we would pay significantly.

However, the most important part - the turnover from gate receipts - is the big kicker, and the major reason why this decision is insane. Not saying the rent doesn't matter (it does and we should not be paying a million quid plus per season for rent, especially with no access to revenue) but that is a massive drop in estimated gate receipt revenue.

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skybluelee said:

I have stayed well clear of the financial debate so far, as a) I don't understand a lot of it and b) it strikes me that most people on here don't understand a lot of it but post regardless which just makes it all even more confusing.

But in REALLY simplistic terms, doesn't it stake up like this;

£400K rent at Ricoh over 5 years = £2M
Gate receipts, say 10,000 x say £15 x say 27 games over 5 years = £20.25M
Net £18.25M

versus

Say £100K rent at Northampton over 5 years = £500K
Gate receipts, say 3,000 x £15 x 27 games over 5 years = £6.075M
Net £5.575M

Not to mention the generation of fans lost, the reduced sponsorship, the reduced merchandise etc.

And not to mention the FFP rules that will hamstring us meaning we will almost certainly be a Div 4 club in the next year or 2 leading to even smaller crowds, sponsorship, merchandise...

What am I not getting?...

Click to expand...

skybluelee said:

I have stayed well clear of the financial debate so far, as a) I don't understand a lot of it and b) it strikes me that most people on here don't understand a lot of it but post regardless which just makes it all even more confusing.

But in REALLY simplistic terms, doesn't it stake up like this;

£400K rent at Ricoh over 5 years = £2M
Gate receipts, say 10,000 x say £15 x say 27 games over 5 years = £20.25M
Net £18.25M

versus

Say £100K rent at Northampton over 5 years = £500K
Gate receipts, say 3,000 x £15 x 27 games over 5 years = £6.075M
Net £5.575M

Not to mention the generation of fans lost, the reduced sponsorship, the reduced merchandise etc.

And not to mention the FFP rules that will hamstring us meaning we will almost certainly be a Div 4 club in the next year or 2 leading to even smaller crowds, sponsorship, merchandise...

What am I not getting?...

Click to expand...