I find it hard to believe what is being said about a stadium build.
Look i would be more than happy for CCFC to have its own stadium. But I do not see how in our circumstances it stacks up financially. No one has ever explained with any degree of certainty as to why and how
All hypothetical i know but consider the following as a for instance (the principles stand even if the figures were to differ)
Assuming they find a site - cost what? £3m (ryton was reported as worth £1.5m wasnt it?)
Contribution to infra structure improvements could be? £5m (going to depend where it is but local authorities will expect a substantial contribution as i understand it)
Build costs. Well rough figures based on the costs of smaller recent stadium builds & fit indicate around £1.8m per 1000 seats excluding land and infrastructure. Stadium of 20000 ? £36m
Stadium build finance costs (interest) say £5m over period of build
So thats £49m as a rough estimate
Time to build say 5 years (as suggested by owners). Assuming we remain in L1, and in a ground share outside Coventry (which is highly possible) annual losses excluding player sales could be £4m per annum. We lost £7m in the year at Sixfields. Club losses in the build period could be £20m. Problem could be greater with promotion due to increase in wage costs (of course attendance could increase in those circumstances)
Total costs of the build project best part of £70m. That is debt of £70m against an asset built for £49m
Yes i know there are ways to finance the project by retail parks, residential and industrial units etc. From what i can see the demand for large retail parks is faltering, online shopping is damaging the retail shop experience, industrial units i think there is decent availability in the city. If Owners retain freehold(or long lease) and rent out space thats annual income yes but the debt needs to be met.
Then there is the annual costs. 365 day stadium running costs. The return on capital of the project even at 3% would be 2.1m per annum (on top of the annual costs we already have of 1.9m). The net income ( after deduction of direct costs) from the stadium will first and foremost need to be applied to the daily running costs and the annual finance costs. Say that means a requirement of net income £4m which may equate to £6m total stadium income excl VAT. So the team gets its boost only after stadium running & finance costs paid for
Why does it work at BPA? They already own the stadium, they have a small build, Infra structure costs for small build wont be as onerous, it is city centre, they have some of the income sources in place, it is being built in stages, pitch will be multi use, have CCC on their side etc....
Rather than accepting assurances from owners who have many times not delivered could someone actually show us why it works, why it makes sense, and why the team will be better off. A bland statement we get all the income actually doesnt prove it because we already get much more than match tickets and it ignores the extra costs that come with extra income