The thought of a central football stadium for CCFC is appealing isn't it. Something to get behind or even hide behind. Had to laugh at the LR comment about perhaps building an underground car park though..... the cost would be horrendous imo. The news has to have come sourced from CCFC or CRFC doesn't it
As mentioned earlier there was planning approved in 2003 and lapsed in 2008
http://planning.coventry.gov.uk/portal/servlets/AttachmentShowServlet?ImageName=10989 hopefully this link works
It was for a Rugby stadium with three stands and a business centre, student homes and parking. The details are not very specific in terms of capacity but it is hard to think that a Rugby ground at that time would be looking at 15000. But it also doesn't state whether it was an all seater stadium - at the moment for football stadia it has to be doesn't it?
There would appear to be a lot of restrictions and covenants but that I would guess is quite normal. It does highlight some of the issues then and with the other developments that have happened since then the issues may have got more complicated - not saying insurmountable but surmountable usually takes a lot of money
Could there be significant income derived from the non playing parts of the stadium? If so how would they be split by the joint venture partners. It cant be 100% of the 365 day income going to one party can it?
If this is a serious plan, what is to stop Wasps now saying go on then but this is the deal till you go take it or leave it? Where could CCFC go to play and still have 12000 fans? Why do Wasps need to give favourable terms? In the scheme of things they don't earn much from CCFC. If no CCFC events then no income certainly but equally no costs either, the life of pitch extended and there may be opportunities to put on other events. You see a perceived strong negotiating position could also be a weak one. Too many people concentrate on the top line (well its where we are directed to look isn't it) but the thing that breaks a company in the end is its cashflow or profitability. If dealing with CCFC is cashflow neutral or even negative at the moment then there is potential for problems and CCFC have little room for movement. That all worries me
If the Butts project is the plan and fans get behind it then people might not like it but cant complain if the Ricoh is rebranded to suit Wasps in the meantime. CCFC are only temporary if the new stadium is the objective
Naming rights there may or may not be a problem relating to CCFC staying at the Ricoh - it depends who is making the claim I guess. But what it probably doesn't mean is that there will be no naming rights income - it might not be as much that's all. I doubt it will be a total loss. I would also guess that other rights/sponsorship/TV monies have increased considerably over last season so the hardship is it so great?
If crowds stay at 12000 for CCFC then that represents approx. 20% of total Ricoh footfall. That has value certainly. But then you need to ask what income is derived from that footfall. according to Wasps last accounts F&B is approx. 4% of turnover from
all events. There is the CCFC rent of course but income from sponsorship/naming etc already was in place so CCFC has no current effect on that. A lot of those deals have changed and been replaced. Its really only the stadium name that's left it would seem. Say 1m per year with CCFC or 0.8m per year without it isn't massive numbers. Naming rights are done on what is not some pie in the sky hope of success. CCFC are a L1 team with hopes of success but a history of failure. CCFC are going to have to be there for what? the next 5 years? Where else are they going to go?
What would the naming rights be at the Butts arena? Again what other incomes? Wasn't the project supposed to be financed on the back of other elements it would seem that has changed. Things can and do change though as opportunities open or close
Interest payments/bonds. These amount to 2.275m per year for Wasps. First 6 months interest payable today I believe. The Bonds are repayable 2022 and currently trading at a premium (have done for all but a couple of days since issue) Do they need to repay in 2022 or could they issue more or even convert to float as a public company. ACL in 2011 paid out 1.7m in loan & interest payments on a turnover of 6.5m. The risk has been spread not just to fans but financial institutions in the most part. Is the pressure that great financially? If the team can even just breakeven in their profits then the problem is? CCFC has interest to pay too. It has interest bearing loans from ARVO. That interest might not be actually paid over but rolled up but it then becomes more debt plus add to that the hidden debt accumulating each year at a rate of £9m due on the preference shares.
All I am saying really is that things are never so clear cut. Nothing has been under the SISU tenure and I see no reason why that is going to change
I do hope we are not going back to all the silly games we used to have in the press again. Where the various parties give interviews/comments etc designed to paint particular unfavourable pictures. If there is a deal to be done at the Ricoh or at a new site just get on with it and do it
Not sure this coming out in the press just now is a good thing
Just thoughts - others will have different opinions