Guys, investors don’t just hand over large sums by way of unsecured loans. And from the FF it sounded like multiple, many investors they hope* to attract. The authorities will be all over things looking for laundered money.
* Hope. No mention of who these will be. We’re hoping to put spades in the ground next year so we ought to have signed pre-contract finance deals already. Yes, the owners are wealthy and probably know many other wealthy people. Do you think they made their wealth from handing over millions without security and guarantees?
The interest alone on that would be anything up to £60K a week. We’ve been told there would be varying amounts of debt and interest levels, and loan periods.
We’ve heard a lot of the word ‘sustainable’. That means we’ve got to be able to thrive as a club in the community and service the debt, plus have enough set aside for a rainy day, stadium repairs, extra legal costs etc. Our current ‘record turnover’ of £7M a year is already paying off our existing huge debt. So ticket sales each year if constant at the current level would just about pay the interest. At some stage we’d be hoping for a promotion, extra TV revenue, stadium naming right income, income from the hotel (assuming that’s not part of a separate trading company) plus some major player sales to keep on top of even low-level debt repayments.
In my view this is not sustainable from an economic perspective. This is like a 21st century version of ‘The Emperor’s New Clothes’ where everyone convinced each other it’s a good idea and blocks out common sense.
What would be my alternative? Either offer Ka$$am £20M to buy the existing place and hotel next door and redevelop it. Or set our sights much, much lower and build something small which we can add to depending on future success.
I honestly can’t see any way that the wheels won’t fall off and we’re left ground-sharing with Reading for a few seasons.