The Ricoh (1 Viewer)

[sky_blue_up_north]

Is it mill stone round our necks or the only way this club can ever make money. We have to see the purchase of the Ricoh as the number one priority for the club. Without it we have nothing. We can make millions from it, with the concerts and other events that are taking place there all the time. If we don't buy it it will be the mill stone, and drag us further down, as continue to pay rent for each game to a less than half full stadium will no revenue stream from it, cannot see how we can possibly progress. So Mr Hoffman this is your mission should be willing to accept it.

 

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[Il Pirata]

Anyone have an idea as to how much the Ricoh actually generates p/a?

 

[Nick]

I keep considering advertising at the Ricoh, but am never sure.

I think if I know the money is going to the club I may go for it

 

[rob9872]

My best guesstimantes make it worthwhile and better than nothing, but not massively appealing:

3 concerts per year say 20,000 people paying £30 is £1.8m. There will be running cost, security, the NEC commission, tax and payment to the band/singer. I guess net profit after that is probably in the region of 10% max. Catering I did some sums on here the other day and equated to approx £100k. Hotel, gym, casino and office space are not part of the deal and separate entities. The one that could generate decent return is the car park, but I have no idea if this is included as part of any deal on the table or not.

The biggest cherry for us is that we would save £1m (less running costs and insurances etc) over the course of a season in rent.

 

[Bennets Afro]

I heard turnover is about £5m just enough to cover our running costs, which is how we could be break even next year

 

[rob9872]

We are more likely imo to break even next year as all of the high player contracts that they were saddled with when they arrived, will have expired and they won't require unachievable breakeven attendance figures. Hopefully this means that even if we can not afford the Marlon's of this world, we will at least be able to hold on and nurture the Connor Thomas' in order that we can build something worth holding on to. In turn that may mean the attendances swelling to a position where we can invest in the team and hold onto them. Well I at least live in hope of this dream becoming reality.

 

[Il Pirata]

What is this thing you refer to, 'hope'?

 

[rob9872]

I think someone switched off the light at the end of the tunnel but there is always hope

 

[OyJimmy]

All this depends on how the purchase of the stadium is shown on CCFC's books. If the money spent buying the ground is added to ccfc's books then CCFC would have to work to pay off the debt. So we probably wouldn't benefit by very much.

However if CCFC do not have to take on the debt and the equity value of the share holders stake in the club is increased then technically CCFC would have no debt to pay off on the ground as that debt would have been abosorbed by the share holders. This act would then put us on a level pegging with most other clubs in our league because what we earn from the ground and club would not need to pay off debt's it could fund player purchases. This is basically why we need to unite the club with ground.

Either way we need to re-untite the club with the ground. At the moment we are paying someone else mortgage on the ground. Even if we had to take on the debt it would be preferable because at least then we could start to reduce the mortgage ourselves on something we own, not the council.

 

[rob9872]

As I now live in Warwick I think Coventry City council should put up all your Council Taxes to compensate and then sell the ground to the club (not SISU) for a quid!

 

[sky_blue_up_north]

As I now live in Warwick I think Coventry City council should put up all your Council Taxes to compensate and then sell the ground to the club (not SISU) for a quid!

I agree, but I live in Cheshire

 

[smileycov]

Yep, i live in Lincoln now.....seems only fair!!

 

[TheParsonsHose]

Sisu are the club though surely?

 

[rob9872]

They are at the moment parsons, although it was meant in jest. However, it could go to a separate holding company

 

[sternslovchild]

But surely the stadium/arena/hotels/casino is or was the only reason Sisu were ever interested.

What if they exercise some crazy option to buy it or a percentage of it (they must have got something off Robinson)

Then sell the club to one of the many queuing consortia this week.

 

[TheParsonsHose]

Let's hope there is some clause that does not let the happen stern.

 

[Paxman II]

There were several clauses with balloon dates attached I believe for purchasing certain stakes in the stadium.
This in turn would not necessarily give us any earnings from some of the things mentioned in some post above I might add.
If anyone can explain exactly what that is then I'd like to hear it.

There is the little matter of the Olympics too wherever that fits into the equation/ACL/Higgs Trust/Coventry City Council

I think more likely we would be exercising the option with ACL and share the running of the stadium with the ownership still with the Council.

...but as i say anyone want to expand with some accurate knowledge?

 

[ccfcadz]

As far as I am aware the initial option would be buying 50% of ACL who owns the leasehold, they make approx £1mil a year.

We would have to deduct operating costs from that though.

I think this had to be exercised by 2013... feel free to prove me wrong

 

[Dan Griffin]

how much would the ricoh actually cost to buy??

 

[sternslovchild]

so who owns what comes 2013?

 

[Paxman II]

The stadium cost some £113m.
ACL if they in fact lease it then that has a far less value and is not a 'bricks and mortar' asset so to speak.

The question is how did the council fund the building of the stadium? What are they paying on the loans and to who? Would they like to be released from that financial burden and would any investors want to take on that burden?

But if it is already leased to ACL which I thought was a company set up by the council then I don't understand the parameters anymore.

Please remind me about where the Higgs Trust comes into play also?....

 

[derbyskyblue]

My best guesstimantes make it worthwhile and better than nothing, but not massively appealing:

3 concerts per year say 20,000 people paying £30 is £1.8m. There will be running cost, security, the NEC commission, tax and payment to the band/singer. I guess net profit after that is probably in the region of 10% max. Catering I did some sums on here the other day and equated to approx £100k. Hotel, gym, casino and office space are not part of the deal and separate entities. The one that could generate decent return is the car park, but I have no idea if this is included as part of any deal on the table or not.biggest cherry for us is that we would save £1m (less running costs and insurances etc) over the course of a season in rent.

Way off the mark there. The 3 take that concerts were 36000 each night and tickets were £45-£55 and no doubt sky high prices if you was in one of the corporate boxes. Factor in all the catering on that lot and other add on's and its big money. Money we are losing out on.

 

[crowsnest]

Concerts don't work like that - its like the football - you rent the stadium and the ticket money goes to the promoter.
ACL would get a bit of the car parking, catering and commision on ticket sold at the stadium. But you get most of the money for renting the arena for the day.

Mind you £5m in ticket sales for 3 concerts !!! I wonder what the rent would be?

 

[rob9872]

Mind you £5m in ticket sales for 3 concerts !!! I wonder what the rent would be?

Even if I am way off the mark with my guesses, still probably still no more than the £180k that I suggested or they would look elsewhere.

 

[SkyBlueWomble]

Most of the money from ticket sales go to the artists and the next biggest winner being the VAT man. The competition for hosting these events is strong - I would guess that in recent years that The Ricoh has undercut the NEC to attract events.

 

[Nick]

Most of the money from ticket sales go to the artists and the next biggest winner being the VAT man. The competition for hosting these events is strong - I would guess that in recent years that The Ricoh has undercut the NEC to attract events.

I read somewhere that there is a deal that the Ricoh has to give a % to the NEC from their concert takings.

I am not sure if it is true or whether it was part of the planning deal etc.

 

[sky_blue_up_north]

Following this morning mortgage announcement for Ryton I really fear the worst now, until we can get a huge cash injection

 

[rob9872]

I read that too about the NEC Nick, but I don't know if that was just when it started or for specific events that they couldn't hold because I've just looked for links on Google and found very limited info. The NEC Group only lists the NEC, the ICC, the NIA and the LG Arena and one article talked about the Ricoh as a competitor. Let's hope that's true because if we do get it, then there are enough fingers in the pie already