The Ground Deal (1 Viewer)

[NorthernWisdom]

I know it's unlikely to be revealed officially (until it turns up in the accounts?), but anybody have any unofficial comments about what was in it?

We know it offers exclusive use to us, but what's the annual fee, what are we responsible for, and what incomes do we get?

 

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[AFCCOVENTRY]

I know it's unlikely to be revealed officially (until it turns up in the accounts?), but anybody have any unofficial comments about what was in it?

We know it offers exclusive use to us, but what's the annual fee, what are we responsible for, and what incomes do we get?

It’s all commercially sensitive

 

[slowpoke]

Ask Mr Hoffman.

 

[shmmeee]

Would not be surprised if it’s significantly more than the £1.2m we used to pay. Negotiated under pressure with pretty dirty tactics from Frasers, almost 20 years later.

 

[duffer]

 

[Grendel]

Would not be surprised if it’s significantly more than the £1.2m we used to pay. Negotiated under pressure with pretty dirty tactics from Frasers, almost 20 years later.

It’s again a licence and not a lease so I suspect it’s less but with few benefits - I think tbe last deal allowed all corporate revenue to be retained from sales of refreshments etc - I assume this would be the same

 

[shmmeee]

It’s again a licence and not a lease so I suspect it’s less but with few benefits - I think tbe last deal allowed all corporate revenue to be retained from sales of refreshments etc - I assume this would be the same

Fair point I’d forgotten it’s a licence.

 

[Specs WT-R75]

Would not be surprised if it’s significantly more than the £1.2m we used to pay. Negotiated under pressure with pretty dirty tactics from Frasers, almost 20 years later.

I'm gonna go out on a limb and say that the rent will be less, because we are now responsible for the most expensive part - the pitch.

To be clear, I am not saying that I think the deal will be better for the club financially, just a lower amount...

 

[Grendel]

I'm gonna go out on a limb and say that the rent will be less, because we are now responsible for the most expensive part - the pitch.

To be clear, I am not saying that I think the deal will be better for the club financially, just a lower amount...

It will be more than what we were paying wasps

 

[KenilworthSkyBlue]

I heard from those within the club pre-securing the license that what FG were demanding was completely unsustainable.

So whatever deal is currently in place will be considerably worse comparative to what was agreed with Wasps.

 

[shmmeee]

So question is: a decade later, was the rent strike worth it?

Pros:
- Broke £1.2m lease
- Ultimately did bust ACL/Wasps
- Arguable bunker mentality has helped
- Anything else?

Cons:
- Fan split
- Reduced income/increased rent while away
- Lost chance at 50% share
- Not likely to ever bust Frasers
- Lease > Licence

 

[NorthernWisdom]

So question is: a decade later, was the rent strike worth it?

Pros:
- Broke £1.2m lease
- Ultimately did bust ACL/Wasps
- Arguable bunker mentality has helped
- Anything else?

Cons:
- Fan split
- Reduced income/increased rent while away
- Lost chance at 50% share
- Not likely to ever bust Frasers
- Lease > Licence

Obviously not worth it, mainly because they didn't follow up with any of their promises afterwards.

Would have been worth it if we'd done something about buying the Arena or building a replacement.

Anyway, that was then, this is now. I do wonder how much extra income we have to generate this season just to stand still relative to last.

 

[shmmeee]

Obviously not worth it, mainly because they didn't follow up with any of their promises afterwards.

Would have been worth it if we'd done something about buying the Arena or building a replacement.

Anyway, that was then, this is now. I do wonder how much extra income we have to generate this season just to stand still relative to last.

Just think we’re at an equilibrium now where we can take stock. This is likely to be us for a bit now.

 

[NorthernWisdom]

Just think we’re at an equilibrium now where we can take stock. This is likely to be us for a bit now.

But also, if we're demanding new investment etc, where's it going to come from if we've spent our new investment on a ground deal?

 

[pusbccfc]

It will be more than what we were paying wasps

I suppose we are getting an awful lot more for our money now.

 

[NorthernWisdom]

I suppose we are getting an awful lot more for our money now.

What?

 

[pusbccfc]

What?

Things like access to changing rooms, control over the pitch, an ability to cover the stadium in new posters, being able to sell boxes and cover the windows in company branding.

 

[NorthernWisdom]

Things like access to changing rooms, control over the pitch, an ability to cover the stadium in new posters, being able to sell boxes and cover the windows in company branding.

Who gets the cash for the boxes, and in what percentage?

 

[shmmeee]

But also, if we're demanding new investment etc, where's it going to come from if we've spent our new investment on a ground deal?

Where would it have come from if we’d been paying back finance for a stadium purchase?

I wonder if it’s a coincidence Doug has given Robins five years basically (3 out of the next 5) and also signed a five year deal. Five year attempt at going up to make us viable or hope to sell up.

 

[shmmeee]

Things like access to changing rooms, control over the pitch, an ability to cover the stadium in new posters, being able to sell boxes and cover the windows in company branding.

Isn’t most of that just cos Wasps went bust?

 

[NorthernWisdom]

Where would it have come from if we’d been paying back finance for a stadium purchase?

Indeed, but ultimately you'd get something at the end of it.

It also depends what the deal for f&b is, doesn't it. I have no idea myself what it is.

 

[NorthernWisdom]

Isn’t most of that just cos Wasps went bust?

Not convinced being able to pop posters up is worth a huge amount on a deal, either.

 

[shmmeee]

Indeed, but ultimately you'd get something at the end of it.

It also depends what the deal for f&b is, doesn't it. I have no idea myself what it is.

I mean ultimately we aren’t going to be sustainable at this level in any ground, and we aren’t going to be sustainable below this level in a 32k stadium. So in a way it’s a moot point. Go up and we can pay £10m/year quite frankly. Go down and even free rent and all the pies in the world won’t save us.

 

[shmmeee]

Not convinced being able to pop posters up is worth a huge amount on a deal, either.

Didn’t the trust put up and take down posters at one point? Random memory.

 

[NorthernWisdom]

I mean ultimately we aren’t going to be sustainable at this level in any ground, and we aren’t going to be sustainable below this level in a 32k stadium. So in a way it’s a moot point. Go up and we can pay £10m/year quite frankly. Go down and even free rent and all the pies in the world won’t save us.

It is important to know however. The ground deal for Selhurst Park brought down two Crystal Palace chairmen, one spectacularly because he didn't really know what he was doing, and signed any old deal.

Now I'm not saying the same has happened here, to be clear. But it'd be nice to know, no?

 

[pusbccfc]

Isn’t most of that just cos Wasps went bust?

Maybe but I remember the hassle the club has putting a Coventry badge on the exterior of the stadium in the first season at the stadium.

I'd argue the ground is more 'Coventry City' than it's ever been. From what a gather, even more is being done for next season.

Either way, we've got more scope to improve it than when Wasps were here.

 

[djr8369]

I heard from those within the club pre-securing the license that what FG were demanding was completely unsustainable.

So whatever deal is currently in place will be considerably worse comparative to what was agreed with Wasps.

Well that’s worrying.

 

[pusbccfc]

Who gets the cash for the boxes, and in what percentage?

Surely it comes under the deal of ticket sales?

 

[Nick]

Surely it comes under the deal of ticket sales?

The club might get the money for them but they will still need to pay Frasers for each box / the food included in them etc. Then obviously it depends if we get a % from the F and B or not.

 

[Flying Fokker]

So question is: a decade later, was the rent strike worth it?

Pros:
- Broke £1.2m lease
- Ultimately did bust ACL/Wasps
- Arguable bunker mentality has helped
- Anything else?

Cons:
- Fan split
- Reduced income/increased rent while away
- Lost chance at 50% share
- Not likely to ever bust Frasers
- Lease > Licence

For me, they key points are the loss of fans during the Northampton/Birmingham jaunt. Bad business, no apparent understanding of the tipping point at which the club was sustainable (Prior to actually leaving the Ricoh). Then it was evident through decline, bad recruitment of managers etc.

in my view the Stupid SISU leadership cut their nose off to spite their face. The only reason the Sixfields attendances improved was because away-day supporters saw us a a fun day out on their promotion run.

today, it’s more about making the fans pay their way. i suppose it means that this means that we won’t be having emergency sales such as Hyam?

 

[Flying Fokker]

But also, if we're demanding new investment etc, where's it going to come from if we've spent our new investment on a ground deal?

Sell players. It works.

 

[ovduk78]

Who gets the cash for the boxes, and in what percentage?

Is it possible that the increase in cost of the corporate boxes is because Frasers have increased how much they charge us for access to them?

 

[Flying Fokker]

Who gets the cash for the boxes, and in what percentage?

Maybe the boxes are rented at the old prices of 9k per season? Then anything else is profit for City?

 

[Saddlebrains]

Its significantly worse than the previous deal with wasps

We don't get any of the pie money either

No coincidence the prem package is a five year thing, and the stadium deal is a 5 year thing

 

[Specs WT-R75]

It will be more than what we were paying wasps

Again I disagree. The largest portion of the rent deal was the pitch and it's maintenance. Again I am saying the overall rent will be down, but the amount it will cost us will of course be much higher when you factor in the pitch separately. We'll find out in a couple of years...