According to CQN the story below is about to be released concerning the purchase and lease of Ibrox, the Albion car park and Murray Park.
Its suggests that the training ground is going to be sold off....
All below: http://www.celticquicknews.co.uk/?p=13517
You’ll remember in October last year I told you I was in receipt of a Heads of Terms for the sale and leaseback of Ibrox, Murray Park and the Albion Car Park. The internet has been full of chatter around this subject for the last week but I didn’t have an update on the subject until last night.
At the time I said the deal would not be signed until after the share issue, which took place in December. Charlie is back in town, and I hear the Sale and Leaseback-ball is in play.
According to the Heads’ the buyer will pay £7.285m for all three properties and, in addition, will provide a loan to the tenant of £6.9m at an interest rate of 15% p.a.
Rent will be reviewed every five years, on an upwards only basis, either at RPI or 2%, whichever is greater. RPI is currently 3.3%
Say Goodbye to Murray Park
The tenant “will take a lease for the stadium and the car park on a 20 year lease at an initial rent of £1.8, per annum". Murray Park is offski, gone, no longer available to Rangers International, or any of its successor clubs.
Interest on the loan works out at £985.5k per annum, so rent plus interest would be £2.835m p.a.
Top line figure for both sale and loan is £13.835m, however, the first three years rent (£5.4m) will be held back as no one is prepared to guarantee the rent, so actual cash into the business will be £8.435m.
Murray Park planning permission
If the new owner of the properties attains planning permission for residential properties at Murray Park within three years of the deal being signed, a provision releases the seller from having to repay the outstanding portion of the loan. If planning permission is achieved after three years, no element of the loan is forgiven.
Potatoes
The buyer can do whatever they like with Murray Park. Can you suggest a suitable use? Perhaps they’ll plant potatoes.
Securitisation
“Rents will be guaranteed from ticket receipts and a first charge on the season tickets income will be granted."
The tenant has the option to buy-back the stadium (only). If the stadium is bought-back in year one the cost will be £10m. Thereafter the purchase price will increase by 12% p.a. until year 10. After year 10 the right to buy-back the stadium will be at “Market Value but no less than £20m".
Should they buy-back the stadium, the lease will remain in place for Albion Car Park at a rate of £250k p.a. (subject to same rent review arrangements).
So what does this mean? The cash will be welcome and will enable to club to survive until into next season. If they spend the money on lottery tickets, there’s a chance they will get lucky and survive well into the season after next.
Suggestions that some people are preparing to squeeze the last penny out of a busted brand are contemptuous.
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I would imagine that if true this would not be acceptable surely??
Bye Bye Murray Park???
posted on 15/8/13
Another night spent oan ra internet for Brokeback Baz
He's oan JA606 all night tae get lucky!
posted on 15/8/13
Celtic quick news...an article about Rangers finances.
Fkn wrap it up, it's tedious.
posted on 15/8/13
Ah I see your back As predicted earlier one whiff of bhoy murney needing his inside leg measured and the stalker returns. Excellent
posted on 15/8/13
Poor, wee, Brokeback Baz. Disnae dare tae come oot as a bufter in Ireland as he will get tanned by the baddies so spends his days and nights oan ra net trying tae tap blokes fae Britain
posted on 15/8/13
Although you are quite strange, odd in fact, i'm glad you're back Mr Soldier man
posted on 16/8/13
im buttoned up the back
posted on 16/8/13
like a puppet??
posted on 16/8/13
aye
you can zip up the back a ma heid
posted on 16/8/13
"In 2010 - the last real audit able finances reported by Rangers - the cost of running Ibrox, Murray park, superstores (not wages or staff) was £13m. (£13.596m to be exact)"
"Yes your wage bill may be down to £7m but the bulk of your spend on these items alone is £20m+.
"What was the rangers revenue while in Div 3?
here is a clue - if its less than £20m your team is in the crapper"
In 2010, Rangers wage bill was £28m
In 2010, there was hole in our finances that had to be filled with money from Europe, and it was only during seasons that we got Champions League income in the door that we made a profit.
In 2009, without any Champions League income, Rangers turnover figure was approximately £40m
With Champions League income in 2010 it was £56m
In 2008, with the massive income from the Champions League and Uefa Cup run, it was £65m
In 2007 with a mediocre Uefa cup run, it was £42m
In reaching the last 16 of the Champions League in 2006, its was £62m
Its pretty clear that European Football was key, with up to £25m of a difference in turnover being seen between a good european year and a terrible one
Lets just ignore all these things tho eh and think Rangers will struggle to make £20m as a third division club.
Lets somehow suggest that the difference between the clubs ability to make money as an SPL club without European football and its ability to make money as division three club is about £20m, or to put it simply, going form the SPL to the third division is as harsh a blow as Celtic playing in Europe and not.
Aye thats about right like eh? Coz the the TV revenue and prize money they give you for playing in the SPL is about the same kind of level as the Champions League, and a club not playing in that league will severely feel the dent in its pocket....right???
Lets just ignore the fact that the club has shaved its wage bill by £20m since 2010.
Lets just concentrate on the fact that it still costs £13m to run the stadium, and Rangers lost money in their first year of trading, and make out that all costs that applied in 2010 are still applicable, but nothing else
posted on 16/8/13
Good point but your board did say you are losing money.
The whole saga doesn't smell right though. Why is green and co running the club at a loss?