The stadium buy-back clause is valid for many years, at a fixed price. My guess is the buy-back won't happen until we're in the prem again. At which point we won't have to refurb the stand as we've already done it.
We don't know the source of the "facility". It's possible it's secured against future revenues from the improved ground. It could just be an overdraft. Or it could be a private non-bank loan. As for player wages, I don't buy the logic at this level that spending more equals better quality. Wages could have fallen through getting high earners off the books. Spending between 30 and 40 percent of t/o (or 100 percent of turnstile revenue) on playing staff is sensible, surely. Sent using BlackBerry® from Orange -----Original Message----- From: "Paul Cundell" <p...@cundell.com> Date: Sat, 31 Mar 2012 11:18:17 To: <markbu...@aol.com>; <leedslist@gn.apc.org> Subject: RE: [LU] What does this all mean? Mark B wrote: > With low interest rates it makes sense to borrow the money for the stadium > work, unless the business was awash with cash - which it isn't. I would agree if we were the owners of the stadium or were borrowing the money to buy the stadium. Why would you go into debt to renovate someone else's property? Why would any right minded person advocate going in to debt to improve someone else's property? > We don't know how much is being spent on the stand - I'd be surprised it's that > much more than 5 million pounds. But it is more than 5 million else the club wouldn't have stated that the loan was to 'part fund' the development. > Wages and associated costs seem to be above budget so it's just as well > there's some headroom in the figures. > It looks like a good set of figures that would make us attractive to an investor. > Especially if you could add premiership revenue to them. What? We have budgeted to spend less this year than we spent last year and you're ok with that? We still, according to Ken, aren't going to spend as much this year on player costs as we spent last year. > But equally there's not enough money at the moment to go buying ER and TA > back. We borrowed a third of the value of the buyback clause to redevelop the stadium whilst not owning it. We have sod all assets so it must be an unsecured loan. In which case why not borrow to buy the stadium back with a low interest loan secured on the ground? I'd wager the loan repayments would be less than the rent we currently pay. Cheers Paul _______________________________________________ Leedslist mailing list Info and options: http://mailman.greennet.org.uk/mailman/listinfo/leedslist To unsubscribe, email leedslist-unsubscr...@gn.apc.org PETE CASS (1962 - 2011) Rest In Peace Mate
