CCC own the freehold. How much rent do ACL pay to CCC each year ?
Who gets the money from the new naming rights for the stadium - CCC or ACL
CCC have no outstanding loans on the Ricoh, they are all with ACL - CCC have an asset that was cost free
CCC own the freehold. How much rent do ACL pay to CCC each year ?
Who gets the money from the new naming rights for the stadium - CCC or ACL
CCC have no outstanding loans on the Ricoh, they are all with ACL - CCC have an asset that was cost free
Glad your asking, mostly legal BUT suggest you follow the main guy on top of it, @lesreidpolitics
Hope I got that right? Main man Coventry Observer - PUSB!
CCC own the freehold. How much rent do ACL pay to CCC each year ?
Who gets the money from the new naming rights for the stadium - CCC or ACL
CCC have no outstanding loans on the Ricoh, they are all with ACL - CCC have an asset that was cost free
CCC own the freehold. How much rent do ACL pay to CCC each year ?
Glad your asking, mostly legal BUT suggest you follow the main guy on top of it, @lesreidpolitics
Hope I got that right? Main man Coventry Observer - PUSB!
From the JR judgement. CNR is effectively CCC.
ACL took a 50 year sublease of the Arena from CNR, with the option of
paying a £1.9m per annum rent or a premium of £21m. In addition, “super
rent” was payable, based on ACL’s net profit before tax, of 10% on profits
over £3.75m rising to 50% of profits over £7.75m. In clause 3.18, CNR was
essentially given a wide right of veto over assignments of the lease.
Extend that rent payment over the original lease.
1.3m x 50 = 65m
The club would have paid 65m for 0% ownership and 0% revenue other than match tickets.
It's the Brighthouse deal of the century.
And people wonder why some dislike the council.
CCC own the freehold. How much rent do ACL pay to CCC each year ?
Who gets the money from the new naming rights for the stadium - CCC or ACL
CCC have no outstanding loans on the Ricoh, they are all with ACL - CCC have an asset that was cost free
I'd also like to know when those naming rights are up for renewal. The Cov Observer claimed ages ago the deal had been extended but that's shrouded in doubt, and is commercially confidential info apparently.
It's very much commercially confidential now the council has sold its share.
The £21 million is the loan they don't pay rent
Indeed...
tbh we're not likely to get any answers now, are we... not that we did before, anyway!
Anyway, I suggest an FOI request for various things, and appeal the answer if it comes back commercially confidential. Would still prob get nowehere but... use the appeal facility!
what has puzzled me NW has been the reluctance by CCC until now to create a lease for ACL that has real worth. Why didn't they create a 125 year lease in the first place that could have allowed a lot of things including development of the site and a higher value sale. Politics and egos getting in the way again perhaps? Seems to me that setting up things properly at the get go and thinking clearly ahead has been a problem for both CCC and CCFC
ACL borrowed 21m from Yorkshire Bank in order to pay CCC for the £21m lease premium. That lease premium means there is no annual rent paid by ACL to CCC. They were given a choice between paying the premium or an annual rent of £1.9m they chose the lease premium
The naming rights go to ACL as leaseholder. As I understand it Ricoh have an option to break or not that comes up in 2015 or 2016. With Wasps playing there they could well be more inclined to renew than they were say 1 year ago.
CCC owns the freehold and that was not cost free. What the lease premium did was allow CCC to repay some of the original finance (a Prudential loan of £21m) on the £115m build costs. As far as we know CCC are still owed circa £14m on the buy out of the Yorkshire Bank loan that ACL used to have - certainly according to Company House CCC still has a charge over the ACL assets
The £21m is the loan£21M was the one off payment for the 50 year lease instead of paying £1.9M a year rent.
However, in the old agreement they still payed 'super rent' based on profits over £3.75M (Yet to be reached ?)
As far as I am aware the £1M paid by Wasps extends the lease to 250 years but the 'super rent' is still payable.
I guess until the deal or accounts are published we will never know.
what has puzzled me NW has been the reluctance by CCC until now to create a lease for ACL that has real worth. Why didn't they create a 125 year lease in the first place that could have allowed a lot of things including development of the site and a higher value sale. Politics and egos getting in the way again perhaps? Seems to me that setting up things properly at the get go and thinking clearly ahead has been a problem for both CCC and CCFC
I'd also like to know when those naming rights are up for renewal. The Cov Observer claimed ages ago the deal had been extended but that's shrouded in doubt, and is commercially confidential info apparently.
What is the 'super rent' mentioned in the JR Court Judgement on profits over £3.75M in addition to the £21M one off payment above?
I assume nothing has been paid yet at that profit has never been reached but I guess that when it is it switches in.
Yes there was that clause in the original lease....... however I am not sure how the new lease works or even where it sits in the structure..... so that clause could be defunct, certainly if I were Wasps I would want it out of any agreement
I plan to make an FOI request related to just the councils prudential borrowing.
Indeed.
What this does show, to a degree (and unfortunately!) that SISU were actually right in not buying in on the original terms. I still don't understand why they can't separate out development and stadium, anyway. A few studies that suggest the benefit to development are not as great as thought, but regardless of this have always been baffled why that ends up a sports club's responsibility. If they want to do it great, they can buy the lease for that bit themselves, but I've never understood why that has been a condition of 'owning' the stadium.
And surely it's better to sell it peacemeal anyway, if you're looking for value?
I dunno, I give up. Anyway, off to see my bank manager to see if my cheque book's still valid(!) so what do I know!
How depressing is this
Ccfc paid 7 years rent + £570k CVA.
7x £1.3m + £570k = c£9.7m for matchday (c25 days) and no/little access to revenue.
Wasps will have paid £5.5m for 100% shares and £1m to extend the lease for 200 years. £6.5m for the lot.
Sent from my iPhone using Tapatalk - so please excuse any spelling or grammar errors
You need to get out more mate
I'm a concerned taxpayer. No wonder they take the piss out of Coventry people.
Isn't it weird that concern for the "children's charity" and "the Coventry taxpayer" seems to have mysteriously evaporated...
Isn't it weird that concern for the "children's charity" and "the Coventry taxpayer" seems to have mysteriously evaporated...
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