Arena dilapidation costs - £12.9m over next 3 years (1 Viewer)

[MalcSB]

Yeah I’d guess so. the idea it needs £13m tomorrow or is going to be shut down is a bit wide of the mark is all. Looks more like a few mill is needed and most of the rest is stuff that will be replaced over time as it wears out.

It does show as a three year programme. It would be more interesting to see what, if any, work Wasps did during their 7 years ownership.

 

---

[MusicDating]

It does show as a three year programme. It would be more interesting to see what, if any, work Wasps did during their 7 years ownership.

Spent 5 mill on a porch

 

[shmmeee]

It does show as a three year programme. It would be more interesting to see what, if any, work Wasps did during their 7 years ownership.

Completely. It looks like they did absolutely nothing. Though it’s academic now cos it’s not like we can go after them for breach of lease.

The main things seem to be the piping and the roof repair. Both big ticket items from the looks of it. Just saying stuff like the lights changing to LED and fixing fascia’s aren’t safety issues.

 

[Esoterica]

Completely. It looks like they did absolutely nothing. Though it’s academic now cos it’s not like we can go after them for breach of lease.

The main things seem to be the piping and the roof repair. Both big ticket items from the looks of it. Just saying stuff like the lights changing to LED and fixing fascia’s aren’t safety issues.

Fascia’s would be a complete waste of money when there’s so much stuff to do there. Football fans aren’t going to be bothered by a few shrubs around the place.

 

[Esoterica]

Fascia’s would be a complete waste of money when there’s so much stuff to do there. Football fans aren’t going to be bothered by a few shrubs around the place.

Ignore me, thought it meant Fuchsias.

 

[skybluetony176]

You do in France, whole purchase system far better there,

I think they do in Scotland too. It’s the seller that gets the survey not the buyer.

 

[MalcSB]

Completely. It looks like they did absolutely nothing. Though it’s academic now cos it’s not like we can go after them for breach of lease.

The main things seem to be the piping and the roof repair. Both big ticket items from the looks of it. Just saying stuff like the lights changing to LED and fixing fascia’s aren’t safety issues.

Not keeping Arena in a good state of repair and decoration was a breach of bond requirements.

The waste pipes issue is interesting, possible consequence of sewage flooding the casino. If it happened on a match day, would that be a case of the shit hitting the fans?

 

[MalcSB]

I think they do in Scotland too. It’s the seller that gets the survey not the buyer.

There were plans to introduce it in England some years ago, I think the only bit left was the EPC report. Would have saved huge amounts of time and money.

 

[fernandopartridge]

Interesting that one of the items is floodlights need replacing as LUX not enough for TV - explains why no Sky TV matches. Shocking state of affairs.

We had midweek sky matches last season

 

[wingy]

We had midweek sky matches last season

We did and looked fine.
Only reason we haven't had coverage this season is late start and form .
Fully expect that to change in the near future.

 

[Bad Boy]

Ignore me, thought it meant Fuchsias.

There's no point going on about what needs doing, we can't go back to the fuchsia.

 

[oldskyblue58]

Looks to me that regular program of maintenance has not been kept up for a number of years. Some items are past their expected life and will need upgrade or replacement.

It seems some items are more critical to the business than others but nothing shown is flagged up as immediate or expected closure of the stadium. I assume there will be a large spend over the next three years to bring things up to date.

The price paid by house of fraser, following extensive due diligence of the site itself, reflected the maintenance repairs and capital expenditure needing to be spent. The logic of that would seem to be the distressed lease had a value around 29m. 15.8m was actually paid. Unlike wasps House of fraser has money available to invest

I assume some of the cost is to recompense tenants for disruption but some of the cost seems to be lost events short term which is a calculated cost not a spend

Whilst the sum to be spent is significant it isnt going to be spent day one. There is a 3 year rolling programme of improvements.

The results of this 3 year programme is

to improve the image & standing of the stadium
To provide a tax offset saving 25% of the cost
Increase the earnings potential of the stadium
Increase the value of the investment Well above the 15.8m paid

Can they get it profitable though?

 

[Warwickhunt]

Marlon King asked her on a date?

Ah! so thats where the smoke came from? Forgot the KY jelly did they

 

[Warwickhunt]

Marlon King asked her on a date?

hope i have not scarred you for life with the image i just invoked for you on my previous answer

 

[Jcap]

We had midweek sky matches last season

We don’t know when the lighting became an issue. We’ve had none so far this season- 19/20 matches in. Seems odd no? Anyway we can’t be sure what the reason is I guess.

 

[Flying Fokker]

Fucking consultants rip buildings apart to justify their jobs. Work with them everyday in central london. (I'm a Chartered Engineer and work in Insurance).
Alot of these are nice to have. They say everything has a life of 15/20 years for spare parts etc.
This makes it looks alot worse than it is. These are worst case scenarios. And alot of the the things like the lifts etc can and will easily last another 15 years.

You wanna see the dilapidated stadiums we been to following city around the country.

And ACL will have offset costs through depreciation of assets. The only issue there is that ACL have gone.

 

[slowpoke]

Ashley hasn’t bought the Arena blind his team will have been all over it with a fine tooth comb hence his 30p in the pound offer.
My betting in time the stadium will be superb.

 

[skyblu3sk]

Ashley hasn’t bought the Arena blind his team will have been all over it with a fine tooth comb hence his 30p in the pound offer.
My betting in time the stadium will be superb.

I'd hope he will want it to be seen as a premium venue. When I have been recently even the "posh" areas have been a dump! Loo seats hanging off etc. So much potential in the place.

 

[Skybluecol]

Interesting that one of the items is floodlights need replacing as LUX not enough for TV - explains why no Sky TV matches. Shocking state of affairs.

Keep the lights as they are in that case.....prefer the 3pm Saturday ko

 

[shmmeee]

The only question I have is will they keep the pitch in good condition or will we see it used to its maximum capacity and deteriorate.

 

[slowpoke]

Yes with proper maintenance I’m hoping Rugby isn’t played there at all but there are a number of grounds where the pitch is shared, Swansea, Wigan two examples, Old Trafford regularly have rugby league too.

 

[Brighton Sky Blue]

Yes with proper maintenance I’m hoping Rugby isn’t played there at all but there are a number of grounds where the pitch is shared, Swansea, Wigan two examples, Old Trafford regularly have rugby league too.

The issue seems to be more if the landlord gives a toss about maintenance of the pitch or anything else. Which ours simply weren’t.

 

[slowpoke]

I spoke to a maintenance chap at the Higgs a while back and he said with undersoil heating a pitch can be sorted to top spec in less than a day.

 

[Sky_Blue_Dreamer]

Not really sure why people are worried about this type of money... Ashley will have done his due diligence and this will have been part of the numbers. I have been in multiple companies where this has been the investment budget I have looked after for a year (sometimes significantly more) let alone 3. A number of things are for improvement which you may or may not do obviously becomes more critical over time. The other thing of note is there are mostly round numbers which will likely mean they are estimated. Normally during estimation you'd add contingency. Whole list could be 10 to 20% lower when it comes to actuals. Maybe more.

I'd like to think MA's well aware of this, but didn't he say he got blindsided with a huge amount of debt at Newcastle he had no idea existed, even though he did due diligence?

 

[Grendel]

I'd like to think MA's well aware of this, but didn't he say he got blindsided with a huge amount of debt at Newcastle he had no idea existed, even though he did due diligence?

He didn’t do any due diligence

 

[skyblu3sk]

I'd like to think MA's well aware of this, but didn't he say he got blindsided with a huge amount of debt at Newcastle he had no idea existed, even though he did due diligence?

You learn from mistakes right... I'm pretty sure he will have done it right this time.

 

[COVKIDSNEVERQUIT]

I spoke to a maintenance chap at the Higgs a while back and he said with undersoil heating a pitch can be sorted to top spec in less than a day.

The trouble is the undersoil heating and heat lamps are too expensive to run.

 

[shmmeee]

If I was purely money focused I’d be looking hard at the 342 days a year there isn’t a CCFC game on and be looking for sports, concerts, monster trick rallies, whatever to put on there. That’s more my concern than a rugby team, though I’m not convinced they won’t be back either.

 

[slowpoke]

The trouble is the undersoil heating and heat lamps are too expensive to run.

For an owner with 3/4 billion in the bank, don’t think so.

 

[TomRad85]

If I was purely money focused I’d be looking hard at the 342 days a year there isn’t a CCFC game on and be looking for sports, concerts, monster trick rallies, whatever to put on there. That’s more my concern than a rugby team, though I’m not convinced they won’t be back either.

I am right in thinking those cunts chucked us out of the proper home dressing room aren't I? At least we should be back in that soon.

Sent from my SM-G973F using Tapatalk

 

[Deleted member 5849]

For an owner with 3/4 billion in the bank, don’t think so.

Yeah, he's bought it because he wants to become a millionaire.

 

[Mucca Mad Boys]

If I was purely money focused I’d be looking hard at the 342 days a year there isn’t a CCFC game on and be looking for sports, concerts, monster trick rallies, whatever to put on there. That’s more my concern than a rugby team, though I’m not convinced they won’t be back either.

I can’t see Wasps returning. They have gates of sun £7k and the ground was the reason d’être for moving to Coventry.

Day-to-day, the CBS is arguably too big for us, let alone a rugby club.

 

[fernandopartridge]

Looks to me that regular program of maintenance has not been kept up for a number of years. Some items are past their expected life and will need upgrade or replacement.

It seems some items are more critical to the business than others but nothing shown is flagged up as immediate or expected closure of the stadium. I assume there will be a large spend over the next three years to bring things up to date.

The price paid by house of fraser, following extensive due diligence of the site itself, reflected the maintenance repairs and capital expenditure needing to be spent. The logic of that would seem to be the distressed lease had a value around 29m. 15.8m was actually paid. Unlike wasps House of fraser has money available to invest

I assume some of the cost is to recompense tenants for disruption but some of the cost seems to be lost events short term which is a calculated cost not a spend

Whilst the sum to be spent is significant it isnt going to be spent day one. There is a 3 year rolling programme of improvements.

The results of this 3 year programme is

to improve the image & standing of the stadium
To provide a tax offset saving 25% of the cost
Increase the earnings potential of the stadium
Increase the value of the investment Well above the 15.8m paid

Can they get it profitable though?

I suspect this exercise was probably done for the purpose of the takeover as much as anything

 

[jordan210]

Wasps kept saying the arena was a profit making business. We it appears the reason it made a profit was because they never did nay maintenance.

 

[MalcSB]

Spent 5 mill on a porch

£5m of grant funding.