Long, Ross sale was 10.75 mill.
Once you take the add ons out so you have the initial amount paid (lets say £8mill) you need to take the sell on clues at 15% to cardiff off as well, leaves you with lets say 6.8mill.
You still need to find another 10 mill of cash from somewhere.
... and Cellino has decided that is what he will do. Hopefully. Not a done deal yet. But if he does, he has found the money from somewhere.
Whether he takes out a £10m mortgage at 5% (£500k annual interest costs) or puts in his own money (from sale of Cagliari or his own back pocket), the club is better off.
If he puts in £10m of his own money and charges 10%, the club is still better off by £600k per annum in running costs. That's a plus.
The capital asset will be written into the books and that has many uses - maybe JLA can tell us what they are.
What it does do, is give the club security.
Security to know we won't be kicked out and can have confidence developing the stadium, also security for finance, but one would hope that mechanism would only be used to develop stadium or maybe an alternative to TA.
It also gives us something to sell if we want to build a stadium elsewhere.
Agree
I'd prefer it's bought outright.
I guess we wait and see. If he buys the ground then those who wanted it should be pleased.
For me it's not a priority but understand the significance of the event.
It does reduce outgoings which will make for more working capital.
Come on Jonty, you know your way of presenting the finances there is very biased!!!
You know what you are doing.
To suggest we could turn the £16mill into £22mill because it would be sitting in the bank is wrong because we would be using that money to pay the rent!!! You can't ignore the rental cost!
Also you will be aware that long term leases come up for regular revaluations. There is no way the cost will remain constant for 10 years.
Also even if after the 10 year period our financial net gain would be 0 we would have the asset of Elland Road at value to the club, and no further costs. Whereas if we to pay the rent like you suggest could be a better option we will still have large sums of money in rent to pay out for the foreseeable future!
Also you haven't taken into account that it is highly likely the value of Elland Road and the land it is on will increase over the next 10 years, this increase will mean that we have more for our money in an asset were to buy now but if we were to put it off it would make buying the stadium more expensive.
So not only will we not have the £16million in cash left available to purchase the stadium in 10 years time....certainly not the £22mill you suggest. It is likely that cash wouldn't be enough anyway anymore!
But Jonty, I don't doubt your intelligence, and I am sure you know all of this. You just choose to be very biased!
I am not a fan of Cellino but I will never need to try and twist every thing he does nto a negative to support my point of view!
Faith, read my post, it was pretty clear that I was doing stuff for the sake of simplicity.
If you really want to work this out you start having to look at yields and we could be here for hours just trying to agree what yield means!
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posted on 4/8/14
Long, Ross sale was 10.75 mill.
Once you take the add ons out so you have the initial amount paid (lets say £8mill) you need to take the sell on clues at 15% to cardiff off as well, leaves you with lets say 6.8mill.
You still need to find another 10 mill of cash from somewhere.
posted on 4/8/14
... and Cellino has decided that is what he will do. Hopefully. Not a done deal yet. But if he does, he has found the money from somewhere.
Whether he takes out a £10m mortgage at 5% (£500k annual interest costs) or puts in his own money (from sale of Cagliari or his own back pocket), the club is better off.
If he puts in £10m of his own money and charges 10%, the club is still better off by £600k per annum in running costs. That's a plus.
The capital asset will be written into the books and that has many uses - maybe JLA can tell us what they are.
posted on 4/8/14
What it does do, is give the club security.
Security to know we won't be kicked out and can have confidence developing the stadium, also security for finance, but one would hope that mechanism would only be used to develop stadium or maybe an alternative to TA.
It also gives us something to sell if we want to build a stadium elsewhere.
Agree
I'd prefer it's bought outright.
posted on 4/8/14
I guess we wait and see. If he buys the ground then those who wanted it should be pleased.
For me it's not a priority but understand the significance of the event.
It does reduce outgoings which will make for more working capital.
posted on 5/8/14
Come on Jonty, you know your way of presenting the finances there is very biased!!!
You know what you are doing.
To suggest we could turn the £16mill into £22mill because it would be sitting in the bank is wrong because we would be using that money to pay the rent!!! You can't ignore the rental cost!
Also you will be aware that long term leases come up for regular revaluations. There is no way the cost will remain constant for 10 years.
Also even if after the 10 year period our financial net gain would be 0 we would have the asset of Elland Road at value to the club, and no further costs. Whereas if we to pay the rent like you suggest could be a better option we will still have large sums of money in rent to pay out for the foreseeable future!
Also you haven't taken into account that it is highly likely the value of Elland Road and the land it is on will increase over the next 10 years, this increase will mean that we have more for our money in an asset were to buy now but if we were to put it off it would make buying the stadium more expensive.
So not only will we not have the £16million in cash left available to purchase the stadium in 10 years time....certainly not the £22mill you suggest. It is likely that cash wouldn't be enough anyway anymore!
But Jonty, I don't doubt your intelligence, and I am sure you know all of this. You just choose to be very biased!
I am not a fan of Cellino but I will never need to try and twist every thing he does nto a negative to support my point of view!
posted on 5/8/14
Faith, read my post, it was pretty clear that I was doing stuff for the sake of simplicity.
If you really want to work this out you start having to look at yields and we could be here for hours just trying to agree what yield means!
Page 3 of 3