I fear that SISU winning this JR, however unlikely, could be very bad news for CCFC.
The latest rental offer would surely have to be revised and not just because ACL may have higher interest payments on a refinanced loan. If the loan to ACL is considered as 'state aid', then surely any rental agreement between ACL and CCFC would have to show that it did not contravene these laws and was set at 'market rate'. Setting a rent at 'market rate', to satisfy the EU bean counters, might be difficult, but there are a few starting points:
1. The owners have stated their intention to build a new ground, so one starting point for rental could be the annual cost of financing a new ground.
2. CCFC, at the moment, rent a ground that does not give them exclusive access and is many miles from their fanbase. So exclusive access to a ground more than 4 times larger, with better facilities and more easily accessible to the fanbase could be expected to charge many times the current rental.
So using these starting points, it could be argued that 'market rate' should be in excess of £1m. (Before any one says 'what about this or that council', the EU are already looking at a number of local authority deals with football clubs).
A similar test would have to be applied should a sale of ACL and/or the Ricoh to SISU/CCFC be contemplated.
So quite what SISU expected to gain from this whole muddled process is beyond me, but everything they have done since arriving (and even before) smacks of poor judgement and incompetence.
The latest rental offer would surely have to be revised and not just because ACL may have higher interest payments on a refinanced loan. If the loan to ACL is considered as 'state aid', then surely any rental agreement between ACL and CCFC would have to show that it did not contravene these laws and was set at 'market rate'. Setting a rent at 'market rate', to satisfy the EU bean counters, might be difficult, but there are a few starting points:
1. The owners have stated their intention to build a new ground, so one starting point for rental could be the annual cost of financing a new ground.
2. CCFC, at the moment, rent a ground that does not give them exclusive access and is many miles from their fanbase. So exclusive access to a ground more than 4 times larger, with better facilities and more easily accessible to the fanbase could be expected to charge many times the current rental.
So using these starting points, it could be argued that 'market rate' should be in excess of £1m. (Before any one says 'what about this or that council', the EU are already looking at a number of local authority deals with football clubs).
A similar test would have to be applied should a sale of ACL and/or the Ricoh to SISU/CCFC be contemplated.
So quite what SISU expected to gain from this whole muddled process is beyond me, but everything they have done since arriving (and even before) smacks of poor judgement and incompetence.