Finch Farm Sold

[pfim]

i thought it was only about 2-3m to build.

2 million to secure the land.

 

[davek]

It cost 12 - 15m to build, and were renting it for a cost that'll eventually rise towards 30 odd million.. Makes sense?.. we should've just bought it.

Correct.

Short termism...tomorrow never knows etc etc etc

 

[Kurt.]

*rents Gospel choir*

Alltogether now....clap your hands.....


Oh Happy Dave !!
oh happy dave
Oh Happy Dave !!
oh happy dave

 

[pfim]

If the club could borrow 12 million at a decent rate, I'd hope they'd invest in something that would generate more revenue (players, stadium etc).

 

[kenada_blue]

Agreed - I cannot see the reason for the club not buying it back if cash is relatively abundant now (in cashflow terms - I know fundamentally we're still skint).

This doesn't make any sense.

Could've had a great asset owned by the club there

 

[pfim]

Could've had a great asset owned by the club there

If it was such a great asset, it wouldn't have sold at a reported discount. And it's not as if they don't have control of the asset, we're talking about how it is financed.

 

[potato]

so does this mean we can afford to give fellaini more wages?

 

[Muggins]

Just been looking up the land purchase, the development, the contracts worth, the valuation amount, and the sale and eventual resale again just now. So complicated. I mean it can be understood, but honestly, wtf???

 

[Azza]

Info about the leasing agreement from the previous sales brochure for those that are interested.

Let is 50 years from 26th July 2007.

Initial rent was £1,112,907.48 per annum, subject to 5 yearly upward-only rent reviews on the basis of 2.5% per annum compounded. Tenant only break option after 35 years, dated July 2042, subject to 12 months written notice. The Vendor proposes to top up the rent to the level of the 26th July 2012 uplift which is £1,259,153.

Revenue received from Everton FC from their television rights is paid into a designated account. An irrevocable direction has been made to the Premier League to pay an amount of the TV revenue equivalent to one year's rent plus VAT each year into the designated account.

The tenant has an option to purchase the freehold reversion at every fifth anniversary of the term in not less than 6 months notice. The amount paid by the tenant must not be less than £13,869,244 plus and additional amount of £2,239,883. The additional amount is subject to being increased by Retail Price Idex for the period from the start date of the lease to the date 20 working days prior the date of completion of the transfer of the reversion.

Based upon historic RPI figures between July 2007 and May 2011 and projected RPI figures for 2011 and 2012 which stand at an average of 4.32% a projected amount of £2,642,594 for July 2012 purchase date. Meaning total equated to £16,511,838 for July 2012 anniversary.

 

[rutribal]

Info about the leasing agreement from the previous sales brochure for those that are interested.

That tells us why we couldn't buy it - it wouldn't have been £13 million to us, the tenants, due to the following:

The amount paid by the tenant must not be less than £13,869,244 plus and additional amount of £2,239,883. The additional amount is subject to being increased by Retail Price Idex for the period from the start date of the lease to the date 20 working days prior the date of completion of the transfer of the reversion.

Not got my maths head on, but a quick calculation would make it probably nearer £17-18million

 

[Blue Lou]

It was sold on 10 May, last month. It's odd how it only came out last night.

 

[sheedys left peg]

Can someone tell me how having your training ground owned by the local council is a positive? I actually think its embarrassing. We are run by clowns.

 

[mightymoyes]

so how much are we saving a year with this new deal?

 

[Duncan Disordely]

With LCC now our landlords for the Finch Farm site, does that render all the details of the previous deal null and void?

ie we no longer have an option to buy every 5 years?

 

[peteblue]

Can someone tell me how having your training ground owned by the local council is a positive? I actually think its embarrassing. We are run by clowns.

Why?.... Manchester owned City's ground and it didn't do them any harm.....