councillor john 'thug' mutton (1 Viewer)

stupot07 · May 2, 2012

Brighton Sky Blue said:
It must have some impact upon them though otherwise there would be no point charging the club rent, surely?

As far as I know - and your better off asking OSB as he's the guru on this, the profits were re-invested into improvements this reduced net profit which meant ACL paid tax.

The big benefit to the council is the 'asset' on the balance sheet, not revenue made. In the long term they may start to take a dividend but at the moment a reduction in rent would not take tax payers money or hinder public services.

Again as far as I understand, ACL, of which CCC is one share holder took out a £20m loan to pay back the council as the rent for 50 years. This money paid off the loan CCC took to help build the Ricoh.

As such the Council do not put any of it's own money in to the Ricoh for day to day running.

OSB please help....

oldskyblue58 · May 2, 2012

cutting the rent would not have an immediate effect on the money available for services in the city. All profits in ACL are either reinvested in the site or go to repay the loan. What the rent cut would mean is that there would be less to reinvest (create jobs) and the loan would take longer to repay. It is only after the loan is repaid that the shareholders will take any income - what a rent cut to CCFc would do would be to push off into the future the time that could happen.

ACl as such stands alone for day to day running not relying on any money coming in from CCC.

So will services be affected - no not at this time

Got to bear in mind that the council do not set or receive any rents at the Ricoh - ACL do

Brighton Sky Blue · May 2, 2012

Cheers for clarifying that OSB-general impression I get is that haranguing the council is futile as they have no actual influence over what the club pays. Equally, that means that councillors acting as though they have sway over the situation should probably be quiet too.

italiahorse · May 2, 2012

Brighton Sky Blue said:
The council finds itself stuck between a rock and a hard place. On the one hand, agreeing a substantial rent reduction will provide the club with vital breathing space and relieve some of the burden on its finances. However, in doing so it deprives itself of revenue it badly needs to provide services for the people of Coventry and to deliver value for the taxpayer-to compensate, tax rates may go up or services may be stretched more thinly.

On the other hand, the council can play hard-ball and refuse to budge from its position. This maintains the financial burden on the club which, in a yet lower division with less revenue, is much more severe and presents a real threat to its future. If it breaks the club and SISU withdraw, the council is then seen as responsible for the demise of the football club, loses its rent income, and costs a good number of people their jobs at the club. Furthermore, the city loses the economic benefits of having a decent sized club which creates jobs and brings in added revenue on
matchdays in the city centre
In both scenarios, the taxpayer, and potentially the people of Coventry, lose. In the latter scenario, everybody loses-I fully sympathise with the council having to choose between the two, and it is not an easy decision to make; though on balance, I feel the former option has much greater and obvious long term benefits for all parties. It requires the council to make some short term concessions for long term benefits-but the club equally cannot duck its responsibilities.

CCFC needs the stadium. The stadium needs CCFC. If CCFC do not play at the stadium the income loss would far exceed £1.2M. Negotiate.............

Brighton Sky Blue · May 2, 2012

Stating the obvious italia, I more or less agree with you.

dick turpin · May 2, 2012

How about this,the Rent stays the same,BUT we get all matchday monies from the Ricoh.The money from home games could ofset the cost of the Rent??
Is this to simple a plan for CCFC to ask about.
How much money is taken over a matchday??? anyone know!!

shit on Joy Splatter

Wrenstreetcarpark · May 2, 2012

I don't know what matchday money you can mean.
All tickets sales go to CCFC. All corporate seat ticket sales go to CCFC. Programmes etc all goes to CCFC. That leaves the profit on pies and pints and food in the lounges. To equal the rent of £1.2m on say 25 games you would need a profit of £48,000 each game. with a gate of say 12,000 that would be a margin of £4:00 per person. What price would a cup of tea or a pint have to be to generate that sort of margin, or how many cups of tea or pints would everybody have to drink?

cheever · May 2, 2012

SISU have changed policy.

They are using the word 'sorry' a lot more...whether they mean this or not is another issue.

They are highlighting what went wrong....as though we don't know, but then still fail to state what they are going to do about it (i.e read the Joy Seppala interview)

They are lining up the Council for the blame if they have to take drastic action.

A classic PR policy.

Brighton Sky Blue · May 2, 2012

By matchday money I meant (and did refer to) the city centre; people going to the pub pre-match, away fans going pre-match, buses to the game etc. I didn't mean stadium takings

Wrenstreetcarpark · May 2, 2012

dick turpin said:
How about this,the Rent stays the same,BUT we get all matchday monies from the Ricoh.The money from home games could ofset the cost of the Rent??
Is this to simple a plan for CCFC to ask about.
How much money is taken over a matchday??? anyone know!!

shit on Joy Splatter

BSB, this is what I was replying to. Sorry,should have used the quote.

Brighton Sky Blue · May 2, 2012

Ah! No worries WCP

dick turpin · May 2, 2012

dick turpin said:
How about this,the Rent stays the same,BUT we get all matchday monies from the Ricoh.The money from home games could ofset the cost of the Rent??
Is this to simple a plan for CCFC to ask about.
How much money is taken over a matchday??? anyone know!!

shit on Joy Splatter

Wrenstreetcarpark said:
I don't know what matchday money you can mean.
All tickets sales go to CCFC. All corporate seat ticket sales go to CCFC. Programmes etc all goes to CCFC. That leaves the profit on pies and pints and food in the lounges. To equal the rent of £1.2m on say 25 games you would need a profit of £48,000 each game. with a gate of say 12,000 that would be a margin of £4:00 per person. What price would a cup of tea or a pint have to be to generate that sort of margin, or how many cups of tea or pints would everybody have to drink?

Just thinking out loud!! But im sure a Pie and Pint cost near £6 so it would help a GREAT deal?.Every little Helps.
Then the Rent money would be close to "The lower rents other clubs have to pay"??? was this not ONE of the main points,LOWER RENT.

Shiiiiiit on Joy Splatter

canleykid · May 2, 2012

Wrenstreetcarpark said:
I don't know what matchday money you can mean.
All tickets sales go to CCFC. All corporate seat ticket sales go to CCFC. Programmes etc all goes to CCFC. That leaves the profit on pies and pints and food in the lounges. To equal the rent of £1.2m on say 25 games you would need a profit of £48,000 each game. with a gate of say 12,000 that would be a margin of £4:00 per person. What price would a cup of tea or a pint have to be to generate that sort of margin, or how many cups of tea or pints would everybody have to drink?

The food and drink is contracted out to compass I believe on a five year deal so we can't have money from catering also car parks are councils so won't get much of them if there reducing rent,

Wrenstreetcarpark · May 2, 2012

dick turpin said:
Just thinking out loud!! But im sure a Pie and Pint cost near £6 so it would help a GREAT deal?.Every little Helps.
Then the Rent money would be close to "The lower rents other clubs have to pay"??? was this not ONE of the main points,LOWER RENT.

Shiiiiiit on Joy Splatter

You may pay £6:00 for a pie and a pint. The point is that (unless you are a football club that doesn't pay its bills) it is only the net profit that would go towards your idea of paying the rent and getting the revenue stream in return. What do you estimate the net profit is on £6:00?

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