MAFF
Well-Known Member
Notice issued to Bondholders.
What a strange situation, asking for additional funds from people owed £35m to fund a marketing campaign for the sale of the arena.
Clearly, no suitors at this time.
wow
Wasps going into admin & the impact on CCFC (61 Viewers)
- Thread starter Alkhen
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wow
SHUNT31
Well-Known Member
Council can revoke the lease. But as the bondholders have a charge over the stadium, this could open a whole legal case that I am sure the council don’t want to get dragged into.
They could in theory, revoke the lease and sell to their preferred bidder, with the proceeds going to bondholders. This would need agreeing with them first though.
The most likely scenario is that the administrators manage to find a buyer. I’m sure there have been offers but clearly, going by this notice, they have not been to the value they were hoping for.
steve cooper
Well-Known Member
I seem to remember there were scrap yards / vehicle breakers in Rowley's Green Lane years ago
Brighton Sky Blue
Well-Known Member
If nobody comes forward before Friday ACL goes into administration and it turns into a straight up bidding war
RegTheDonk
Well-Known Member
Blimy.Notice issued to Bondholders.
What a strange situation, asking for additional funds from people owed £35m to fund a marketing campaign for the sale of the arena.
Clearly, no suitors at this time.
Looks like one of those random emails you get, asking you to send loads of money to invest in some overseas gold mine, because they need to hire a digger.
jordan210
Well-Known Member
Notice issued to Bondholders.
What a strange situation, asking for additional funds from people owed £35m to fund a marketing campaign for the sale of the arena.
Clearly, no suitors at this time.
Nothing screams profitable company with lots of buyers lined up than getting the begging bowl out to people you are likely to screw over.
Rotten to the core.
steve cooper
Well-Known Member
I said in a previous post that I didn't think there would be massively high bids.
It may well surprise us how little it goes for.
It may well surprise us how little it goes for.
SHUNT31
Well-Known Member
Which, if the case, means it is imperative that CCFC end up with the lease.
fernandopartridge
Well-Known Member
It's hardly a surprised - why would a buyer want to pay off debts it doesn't have to - this is exactly the reason why the Arena has struggled from day 1. Sorry bondholders but you knew what you were getting yourselves into. Caveat emptor lads.
steve cooper
Well-Known Member
Or even better, someone such as Mike Ashley buys CCFC and the stadium
fernandopartridge
Well-Known Member
I find it hilarious on here how arguments change from one minute to the next depending on who is being argued again. When CCFC are moving out it’s “what about the local economy? Wont somebody think of the small businesses?” Then when someone says the arena has benefitted the local economy suddenly it’s an outrageous idea
There are infinitely more jobs and investment in North Coventry thanks to that patch of land than there were when it was a gas tower. Come on.
Infinitely is stretching it a bit, come on. There are lots of very insecure zero hours jobs with catering companies.
Ashley is not interested -
Philosoraptor
Well-Known Member
Oh boy, you do realise you are quoting an example of a paper and not an actual paper?
Most of this field comes from America, who are a few decades ahead of what's going on in UK.
Add into the mix, one of the largest supermarkets in the UK, and we're talking a complete shitshow for the local area.
This is why you won't find it in the top ten list of the best ways to spend your money on urban regeneration.
The Impact of Professional Sports Franchises and Venues on Local Economies: A Comprehensive Survey
Journal of Economic Surveys, forthcoming
Abstract
Local governments routinely subsidize sports stadiums and arenas using the justification that hosting professional franchises produces economic development and social benefits in the community. The prevalence of venue subsidies generated an extensive and vibrant research literature, which spans over 30 years and includes more than 130 studies. We chronicle this body of research from early studies of tangible economic impacts in metropolitan areas, using basic empirical methods, through recent analyses that focus on sub-local and non-pecuniary effects and employ more sophisticated empirical methods. Though findings have become more nuanced, recent analyses continue to confirm the decades-old consensus of very limited economic impacts of professional sports teams and stadiums. Even with added non-pecuniary social benefits from quality-of-life externalities and civic pride, welfare improvements from hosting teams tend to fall well short of covering public outlays. Thus, the large subsidies commonly devoted to constructing professional sports venues are not justified as worthwhile public investments. We also investigate the paradox of local governments continuing to subsidize sports facilities despite overwhelming evidence of their economic impotence. Our analysis informs academic researchers and policymakers to motivate future studies and promote sound policy decisions guided by relevant research findings.
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chiefdave
Well-Known Member
Aren't they two separate things? For example the pubs that benefit from our games haven't appeared as a result of the stadium being built, in fact its a common complaint that there is a lack of facilities around the ground.I find it hilarious on here how arguments change from one minute to the next depending on who is being argued again. When CCFC are moving out it’s “what about the local economy? Wont somebody think of the small businesses?” Then when someone says the arena has benefitted the local economy suddenly it’s an outrageous idea
There are infinitely more jobs and investment in North Coventry thanks to that patch of land than there were when it was a gas tower. Come on.
I was under the impression that the project was supposed to be a catalyst for regeneration in that part of the city but it seems to me that since the initial project very little has happened. That doesn't mean that the arena park itself hasn't created jobs or that existing businesses in the area don't benefit from the footfall.
SkyblueDad
Well-Known Member
Still is
Nick
Administrator
Yep, people will be waiting for Administration to see what happens to the £35m. Will the lease just be auctioned off to pay them back? Will CCC call it back and put it back to 50 years?
Is it even going to be worth £35m to be able to recoup it?
Mcbean
Well-Known Member
Like I said Merc dealers
Terry Gibson's perm
Well-Known Member
If you want to buy it you would be looking nearer the £15 million of the actual debt from the arena loan than the other £20 million that disappeared in interest payments and running costs. I am afraid the bond holders could end up short changed but never mind most were greedy bastards hunting massive returns.
Nick
Administrator
That's the thing.
What is the highest bidder for the lease is £5m for example? (Made up number).
Some goes to HMRC, some to bondholders and somebody has a 240 odd year lease debt free for £5m? All the other creditors and local companies get nothing.
Terry Gibson's perm
Well-Known Member
Maybe a high net worth individual fan could buy the arena if the price was right.
Plenty of jobs created in the area but all at £9 an hour in retail or "hospitality." Its why we get hopeless students or agency working in the bars etc at the CBS and never come back for a second shift.
Its also why the government can crow about full employment but all the jobs are min wage where you cant actually live on it. Not regeneration.
Its also why the government can crow about full employment but all the jobs are min wage where you cant actually live on it. Not regeneration.
duffer
Well-Known Member
Notice issued to Bondholders.
What a strange situation, asking for additional funds from people owed £35m to fund a marketing campaign for the sale of the arena.
Clearly, no suitors at this time.
That tells a story. I think this means ACL is going to go for a lot less than the bondholders think.
The valuation was always smoke and mirrors in my opinion; Wasps (like SISU) are masters of bullshit and they've burned a lot of people.
There's never been a better time to pick up an arena and the associated businesses on the cheap. If SISU don't do it can we have a whip round on here?
I think I'm only partly joking... 20,000 fans chucking in £500 each gets us to £10m. If we owned the stadium that's the club in Coventry forever. Who's going to start the campaign?
Gynnsthetonic
Well-Known Member
Source
Samo
Well-Known Member
I'd put £500 in today if I thought this could happen
Nick
Administrator
Yep, it was always amazing how it suddenly jumped up to £35m when they wanted to get the bonds.
Not a terrible idea. If the bid for the stadium is not won then everyone just gets their money back
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Source where he is?
chiefdave
Well-Known Member
Remember the discussion on this back when it happened and we all got told we were wrong and that the sale price of both ACL and then the lease extension to Wasps weren't linked to the valuation Wasps gave for the purposes of issuing the bond but it never stacked up for me. Always stuggled to see how they would sell it for £35m if it came to it.
Guess there's still time for us all to be proven wrong.
I was thinking the same if it could be a supporter owned facility? Not as easy as that but did it cross my mind.
I personally don’t think the stadium will be that much of an attraction… especially as it’s rumoured to need £ms of rework done to it.
duffer
Well-Known Member
Aren’t they forced to give up the P Shares anyway just for going into admin? Can’t see them raising anywhere near enough to pay them back
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