by 3points »
15 Mar 2022 22:30
YorkshireRoyal99 It only matters though if this is an inflated price, granted it probably is. Their ground holds significantly more than what ours does, although I'm not sure how you'd value a stadium personally.
On the face of it, it looks as if it may catch them out.
A stadium is worth what someone is prepared to pay for it. I was heavily involved in the Ricoh Stadium sale to the owner of Wasps RFC. The owner of the football club thought they would pick up the stadium for a cut price deal as they thought they were “the only game in town”. But they were outmanoeuvred by Wasps’ owner, who stepped in and bought it from the council (who had bailed it out previously). The deal was about £20m plus an option to buy & develop the land around the stadium afterwards.
Wasps then used the stadium to underpin a refinancing through a retail bond, worth nearly £50m, which then drove SISU (the owner of CCFC) apoplectic who took the council to court for selling the stadium at an undervalue. I understand it may be refinanced again, but for significantly less than £50m.
Stadia are not usually assets that can be multifunctional- the Ricoh was a strange example as Wasps wanted to relocate from London. But that was driven by the fact they thought they could make money by later developing the surrounding land (which I don’t think has ever happened). You see in sometimes in the US when a sports franchise moves between cities and then the remaining stadium becomes defunct and often gets demolished as there really is no alternative use. With the SCL what is the site worth without the stadium on it? This question is hard to answer given the surrounding land has already been sold off to the Thais so to maximise value the Thais would also need to sell their land too