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Stadium sale loophole closed


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Maybe this is an opportunity for DC to say, ok let's cancel the stadium sale. SWFC have taken the punishment for FFP breach anyway. Having said this without the latest accounts it's difficult to keep up with our rolling 3-yr FFP position. We could even say to the EFL we're happy for you to reinstate the 12 point punishment providing it stays in last season...

 

Cancelling the sale would essentially mean the club don't have to pay the annual rent.

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3 hours ago, Sultan_Pepper said:

According to replies to that thread Gibson at Boro competed a stadium sale for £75m last week and now they bring this in? Coincidentally timing...

 

Bearing in mind that Derby got in real trouble for over valuing their stadium when they sold it. I'm really struggling to see how a stadium in Middleborough is valued so much higher than a very similar stadium in Derby or Coventry

 

£75M?!? You could buy the entire north east for that!

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The ground valuations are either based on two methods:

 

Depreciated replacement value - this is the cost of replacing the stadium to modern standards at an equivalent capacity less the depreciation of age and condition of the existing stadium calculated as a %. So say £100m less £30m = £70m

 

Investment value - this is the rental price x an investment yield say 10% for ease. So, if our rent is £6m/annum x 10% the valuation would be £60m

 

When people say, 'the ground isn't worth anything because of the area', it's irrelevant, as the ground valuations don't consider alternative use valuations - i.e. residential. 

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1 hour ago, Animis said:

Maybe this is an opportunity for DC to say, ok let's cancel the stadium sale. SWFC have taken the punishment for FFP breach anyway. Having said this without the latest accounts it's difficult to keep up with our rolling 3-yr FFP position. We could even say to the EFL we're happy for you to reinstate the 12 point punishment providing it stays in last season...

 

Cancelling the sale would essentially mean the club don't have to pay the annual rent.

 

But without the stadium sale wouldn't we then have breached FFP again at a later date? And surely we would have an even bigger hole in the finances now?

 

I am not great with this P&S stuff mind, so apologies if I have completely misunderstood.

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19 minutes ago, Sheff74 said:

 

But without the stadium sale wouldn't we then have breached FFP again at a later date? And surely we would have an even bigger hole in the finances now?

 

I am not great with this P&S stuff mind, so apologies if I have completely misunderstood.

 

Possibly - it's all about the rolling 3yr calcs, and yes, it's likely without the sale funds we'd be in breach again once the accounts are released.

 

In terms of the club's finances, the debt is DCs - he's saddled his fake company S3 with a loan repayment to make the sale installment payments, which comes with a charge. If he defaults the dominos start to fall - September will be a critical month for him and the club.

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9 hours ago, Groundhopping Owl said:

Maguire flagged up last night that Derby had “discovered” another £30m of profit from selling Pride Park to slide into their latest accounts.

 

Absolutely shameless lol

 

They probably found it behind the sofa.

 

We had a couple of sofas once, but we let them go as we didn't think they were good enough, even though one seemed to fit in quite well. I think Celtic picked them up on Gumtree for free so no doubt they have our missing £30M now.

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