Swansea seals new lease deal on the Liberty Stadium (16 Viewers)

[Big_Ben]

Quote from BBC News:

Swansea City FC has agreed to lease its Liberty Stadium home after securing a deal with the council.

The Swans will pay the authority £300,000 a year for 37 years, give it a cut of stadium sponsorship revenue and build 3G pitches in the city.

The club and the Ospreys rugby region have played at the £27m venue since 2005, paying a nominal rent to the management company running it.

Swansea council's cabinet should rubber-stamp the deal on 16 November.

It will retain ownership of the stadium and the Ospreys will continue to play there.

"We've moved from a position where the taxpayer in Swansea was getting zero from this asset," said council leader Rob Stewart.

"This gives the taxpayer a fair deal, it gives the Swans and the Ospreys a fair deal in this fantastic theatre where they can realise their dreams."

 

---

[Nick]

It's not much at all when you think about it for what they will get.

Swansea - New deal for Swansea's Liberty Stadium

 

[CJ_covblaze]

Shows what you get when you're willing to sign a long term lease.

 

[theferret]

It's not much at all when you think about it for what they will get.

Swansea - New deal for Swansea's Liberty Stadium

Yeah, they pay 300K in return for 365 24/7 operation of the venue and access to the revenue streams it creates. We pay 100K for partial use for 180 hours a year. Still, I'm sure some will make a direct comparison and argue we have a good deal. It's apples and oranges really.

 

[Nick]

Shows what you get when you're willing to sign a long term lease.

Course it does.

 

[stupot07]

Shows what you get when you're willing to sign a long term lease.

Lolz, wasn't our last lease 50 years for matchday only, a few offices and a shop, no access to revenues or stadium sponsorship....£1.3m pa wasn't it?

Sent from my SM-G930F using Tapatalk

 

[Deleted member 5849]

Have to say, if anything I'd be worried at the shortness of that lease...

 

[Grendel]

Shows what you get when you're willing to sign a long term lease.

We did it was £1.3 million plus match day costs for no extra revenues.

 

[italiahorse]

We did it was £1.3 million plus match day costs for no extra revenues.

We gave half the revenues away for £6.5M and then didn't think they were worth buying back.

 

[CJ_covblaze]

I mean now.

 

[italiahorse]

I mean now.

We can't really sign one until Sisu stop legals. It would be compromised.
Most of us want a long term deal. Would be nice if club could also buy into revenue streams as well but that also can't happen for the same reason. (If available).

 

[fernandopartridge]

I mean now.

It's a completely different situation

 

[Nick]

I mean now.

How's that going to work then?

 

[Nick]

We gave half the revenues away for £6.5M and then didn't think they were worth buying back.

Not at £24m or whatever it was.

 

[Liquid Gold]

Yeah now we could easy get 24/7 365 day use of the venue that another fucking team own and use.

 

[italiahorse]

Not at £24m or whatever it was.

It was a agreed formula price I guess about £8M at the time.
Obviously the £25M? includes the outstanding loan that ACL had and Sisu didn't want, but Wasps took on.

 

[Liquid Gold]

Let's not forget that Swansea council paid for the stadium in full and then let the teams play there for almost nothing up to now while our council only partially funded the Ricoh due to their redevelopment plan and then charged the club a huge rent plus costs and no revenue.

We should think about changing our nickname to the hookers with the number of times we've been fucked.

 

[italiahorse]

Yeah now we could easy get 24/7 365 day use of the venue that another fucking team own and use.

We can, but you either need to buy in to the streams or rent the facilities to generate them.
We can't expect them for £100K a year. (We do get £75K from them currently)
We could pursue our own revenue streams but as OSB58 points out we don't give it much effort.

 

[Nick]

It was a agreed formula price I guess about £8M at the time.
Obviously the £25M? includes the outstanding loan that ACL had and Sisu didn't want, but Wasps took on.

What are you on about?

Good to see you scrambling about in this thread.

 

[italiahorse]

What are you on about?

Good to see you scrambling about in this thread.

.... and you conveniently ignoring the readily available facts on the CCFC timeline link below.

 

[Nick]

.... and you conveniently ignoring the readily available facts on the CCFC timeline link below.

What's being ignored?

 

[italiahorse]

What's being ignored?

That we sold our 50% share of ACL to Higgs for £6.5M with an option to buy them back for a similar price ?
You just inflated it for some reason ?

 

[Nick]

That we sold our 50% share of ACL to Higgs for £6.5M with an option to buy them back for a similar price ?
You just inflated it for some reason ?

I wasn't on about that share, I was on about the revenue stream..

Still, how does that relate to the Swansea deal in any way?

 

[italiahorse]

I wasn't on about that share, I was on about the revenue stream..

Still, how does that relate to the Swansea deal in any way?

No idea. Grendull bought it up.

 

[Nick]

No idea. Grendull bought it up.

Which post? The only one I can see was replying to our terms when we had a long term deal.

Even owning 50% like you want to go for, it's still nothing in that arrangement like Swansea.

 

[Grendel]

It was a agreed formula price I guess about £8M at the time.
Obviously the £25M? includes the outstanding loan that ACL had and Sisu didn't want, but Wasps took on.

That’s not true - they purchased the management company - the loan was not held by the council until they decided to buy it and then declared it would make a profit of that was retained.

 

[Deleted member 5849]

Pointing the finger at nobody in particular, do we have to do this *again*?

Anyway, the Swansea deal on the surface looks OK, but I have a few questions. Once upon a time I'd have found out the answers, but now I'll just ask them...

Is the headline figure of £300k pa absolutely fixed, or is it linked to inflation / can it be renegotiated?

Is there a break clause in the contract?

Ospreys have the right to play there, but they now appear to be very much tenants on a purely play here and nowt else basis. In multi-use stadia there are winners and losers and it seems Ospreys are the losers here. The ground was built as much for them as Swansea and, just because Swansea have risen recently, it seems a bit harsh to squeeze the rugby team with nowt but a promise that they'll carry on playing there.

37 years is not that much all things considered. It won't be *that* many years before there's a limited time on the lease and as we know, that causes uncertainty. If Swansea fall down the divisions (entirely possible) does it put *them* under threat from property developing carpetbaggers later on, or a revitalised Ospreys who then squeeze Swansea?

Does sole control mean they're responsible for repairs / expansion etc?

Swansea have to complete two 3G pitches every five years for how long? What consitutes 'access' for the public?

I wouldn't automatically say it's a fabulous deal.

 

[italiahorse]

That’s not true - they purchased the management company - the loan was not held by the council until they decided to buy it and then declared it would make a profit of that was retained.

Mainly, as I said ?

 

[duffer]

Shows what you get when you're willing to sign a long term lease.

Yep, reminds me of when we were offered an extension to 250 years for £1 million.

Oh no, wait, I'm thinking of that rugby club from London, sorry.

 

[Grendel]

Mainly, as I said ?

No actually as usual nothing like you said. The Loan wasn’t paid off until after the purchase of both Higgs and the council share was it? In May?

Are you suggesting that there was collusion and this was part of an initial agreement? That explains the low purchase price but contradicts council statements at the time of purchase.

Are you saying the council collided with wasps behind taxpayers and lied to them?

You say you are in the know so it must be true.

Who is the source for this?

 

[Grendel]

Yep, reminds me of when we were offered an extension to 250 years for £1 million.

Oh no, wait, I'm thinking of that rugby club from London, sorry.

Ours was £24 million to buy F and B rights.

 

[chiefdave]

We gave half the revenues away for £6.5M and then didn't think they were worth buying back.

Not quite that straightforward though is it. The £6.5m wasn't entirely a payment to the club, if I recall correctly it was around £2m to the club with the rest split between paying off a Higgs loan and paying off the likes of Robinson. The buy back price was in the region of £10m, as confirmed by PWKH on here.

As for buying in to the revenue streams, you're correct, we could buy them back. I believe we were asked for £24m for matchday revenues only for the remainder of the 50 year lease.

What the Swansea deal shows is what can be achieved with a council that wants success for its local teams rather than screwing them over at every available opportunity.

 

[fernandopartridge]

No actually as usual nothing like you said. The Loan wasn’t paid off until after the purchase of both Higgs and the council share was it? In May?

Are you suggesting that there was collusion and this was part of an initial agreement? That explains the low purchase price but contradicts council statements at the time of purchase.

Are you saying the council collided with wasps behind taxpayers and lied to them?

You say you are in the know so it must be true.

Who is the source for this?

Last question:

Have you told SISU's lawyers as they would be extremely interested

 

[Ian1779]

It was a agreed formula price I guess about £8M at the time.
Obviously the £25M? includes the outstanding loan that ACL had and Sisu didn't want, but Wasps took on.

£24m was for F&B courtesy of Mr Gidney....

Keep up

 

[Sick Boy]

Shows what you get when you're willing to sign a long term lease.

How much were we paying and what were we getting under our previous longer lease?