There is no pending land deal... (1 Viewer)

Godiva said:

paranoia

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Alas, this has been SISU from the very beginning!

Probably because of the markets they usually work in, where you need a competitive advantage so protect what you have... but does mean they don't adapt well elsewhere!

Godiva said:

Yes, and land can be acquired on an 'intention to buy' providing planning permission to build a stadium is granted.

Only, I wonder why they would be scared of competition. Leaks of paranoia. Who could be a competitor? It would require someone with a plan and finances. If they were more open they might attract interest from somebody who would like to be included in the project - set up a retail or something. Much more likely that would happen than someone decides to buy the land just because the club want to build a stadium.

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The way deals are done on land where planning permission is uncertain is this:

What I am about to explain is ' Normally Accepted Practice' in these situations.

That is, the purchaser agrres to pay an option fee of a nominal amount that secures exclusivety for a fixed period of time. If planning permission is granted then the purchase price is normally determined as a fixed percentage of the value (if need be, the "value" can be decided by an independent valuer if, and when, planning permission is granted if the two parties don't agree on the value) but if planning permission isn't granted within the time set out in the option agreement then the option agreement lapses and the deal is off.

Simples, except that, we all know , nothing that SISU do is 'normally accepted practice' is it?

How on earth anyone would entertain doing business with them without awatertight agreement is a mystery to me! That could explain why it's taking so long?

Godiva said:

This is key to understand how a new stadium could be partly financed without leaving a too much of an interest burden.

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Agreed but we were a tail end Prem Club then and tail end third tier club now.

wingy said:

Agreed but we were a tail end Prem Club then and tail end third tier club now.

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Perversely, might actually make it easier now.

Start small, intend to grow means less initial outlay.

Of course it makes it harder to find partners too, but the outgoings probably aren't as eyewatering in absolute terms.