Re: Stadium Redevelopment : Thu Apr 20, 2017 12:01 pm  

No, the third party is building the shared stand on land owned by Yorkshire and Leeds who in turn rent that building.

Re: Stadium Redevelopment : Thu Apr 20, 2017 12:27 pm  

The Ghost of '99 wrote: No, the third party is building the shared stand on land owned by Yorkshire and Leeds who in turn rent that building. Correct, the Exec Board report gives further details re buy back etc. But there are a number of details yet to be resolved. This is the report the Exec Board of the Council has considered: http://democracy.leeds.gov.uk/documents ... 060417.pdf It's a right riveting read.

The Ghost of '99 wrote: No, the third party is building the shared stand on land owned by Yorkshire and Leeds who in turn rent that building. Correct, the Exec Board report gives further details re buy back etc. But there are a number of details yet to be resolved. This is the report the Exec Board of the Council has considered: http://democracy.leeds.gov.uk/documents ... 060417.pdf It's a right riveting read.

Re: Stadium Redevelopment : Thu Apr 20, 2017 1:00 pm  

Old Feller wrote: Correct, the Exec Board report gives further details re buy back etc. But there are a number of details yet to be resolved. This is the report the Exec Board of the Council has considered: http://democracy.leeds.gov.uk/documents ... 060417.pdf It's a right riveting read. As you quite rightly comment a right riveting read indeed. I suppose eventually we will find out the identity of the funding company, or individual putting up the cash. Seems like a good deal for them, highly unlikely that the lease payments would not be paid . I still think that it's not the best way to fund the scheme. I suspect the funding will be more expensive than the traditional way of borrowing money on the open markets . That way similar to purchasing your house on a mortgage you will eventually own the property. Thus owning a valuable asset. As I commented before, it looks like a perfect scheme to eventually sell off the club when the devolpment is complete.

Old Feller wrote: Correct, the Exec Board report gives further details re buy back etc. But there are a number of details yet to be resolved. This is the report the Exec Board of the Council has considered: http://democracy.leeds.gov.uk/documents ... 060417.pdf It's a right riveting read. As you quite rightly comment a right riveting read indeed. I suppose eventually we will find out the identity of the funding company, or individual putting up the cash. Seems like a good deal for them, highly unlikely that the lease payments would not be paid . I still think that it's not the best way to fund the scheme. I suspect the funding will be more expensive than the traditional way of borrowing money on the open markets . That way similar to purchasing your house on a mortgage you will eventually own the property. Thus owning a valuable asset. As I commented before, it looks like a perfect scheme to eventually sell off the club when the devolpment is complete.

Re: Stadium Redevelopment : Thu Apr 20, 2017 4:52 pm  

So when are we likely to find out when building work will start?

Re: Stadium Redevelopment : Thu Apr 20, 2017 6:42 pm  

Sounds like a PFI.
From what I know of that sort of scheme the only one who benefits is the one lending the money.
Hopefully I am wrong.

Re: Stadium Redevelopment : Thu Apr 20, 2017 7:59 pm  

It didn't sound like we had too many finance options available. Is it a good deal, who knows, it depends how long and how much the lease is.

Re: Stadium Redevelopment : Thu Apr 20, 2017 9:19 pm  

Backwoodsman wrote:

As you quite rightly comment a right riveting read indeed. I suppose eventually we will find out the identity of the funding company, or individual putting up the cash.
Seems like a good deal for them, highly unlikely that the lease payments would not be paid . I still think that it's not the best way to fund the scheme. I suspect the funding will be more expensive than the traditional way of borrowing money on the open markets . That way similar to purchasing your house on a mortgage you will eventually own the property.
Thus owning a valuable asset. As I commented before, it looks like a perfect scheme to eventually sell off the club when the devolpment is complete.

Presumably they've considered that as an option, unless of course the highly paid people they've consulted haven't considered it in which case apologies!

Re: Stadium Redevelopment : Thu Apr 20, 2017 10:50 pm  

The reason for it being a PFI-style arrangement apparently is because Yorkshire want to keep the debt off their books - same logic as Gordon Brown and PFI in the first place. Leeds don't really mind either way although I doubt they would be keen if it significantly increased the cost of debt.

Re: Stadium Redevelopment : Fri Apr 21, 2017 11:57 am  

The difference being that PFIs normally operate & maintain the facility as well, using lower paid staff often TUPEd from the previous owner. I presume this will not be the case here.

Re: Stadium Redevelopment : Fri Apr 21, 2017 4:42 pm  

It looks like this will be an expensive way to fund the development. What will the annual cost of the lease be? Likely to be starting in the region of £2-3 million p.a. just to repay the capital plus the profit for the 3rd party (and Council) plus any future increases in bank rate and annual inflation.

I note that the 3rd party will not only be lending the funds but also doing the development work. Therefore you have to ask is it a fixed price contract with time penalties or could it balloon in price and also be late in delivery?

It looks like security will be offered from the cricket side by using the income from stadium naming rights etc. Will this also apply to the rugby side?

Will the third party also be providing services to the new stands and if so at what cost and will this diminish the clubs earning potential?

At least there is the opportunity to pay off the lease for 1£ in 40 years and also to make lump some payments to reduce the annual rental costs.

It seems a big risk just to get a test match against Australia whose full potential income is not guaranteed (could be rained off or have an early finish) Could we not get assistance from the Lottery and the Sports council?