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Post by Topper Gas on May 9, 2023 21:30:10 GMT
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Post by gasonthemount on May 9, 2023 21:35:22 GMT
Possibly linked to financing the construction of the new South Stand?
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Post by Deleted on May 9, 2023 21:49:57 GMT
Possibly linked to financing the construction of the new South Stand? That is what Tom Gorringe has confirmed on Twitter. Not the cheapest way to raise cash but I guess Wael wants to keep his funds for the footballing side of the club. |
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Post by Topper Gas on May 9, 2023 21:55:38 GMT
Possibly linked to financing the construction of the new South Stand? That is what Tom Gorringe has confirmed on Twitter. Not the cheapest way to raise cash but I guess Wael wants to keep his funds for the footballing side of the club. Do you have a link to the tweet/reply? |
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Post by percy on May 9, 2023 21:58:14 GMT
That is what Tom Gorringe has confirmed on Twitter. Not the cheapest way to raise cash but I guess Wael wants to keep his funds for the footballing side of the club. Do you have a link to the tweet/reply? |
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Post by dudelebowski on May 9, 2023 22:00:17 GMT
Do you have a link to the tweet/reply? And there it is, the fanbase that must know EVERY SINGLE detail otherwise they’ll completely lose their minds by default. So strange. |
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Post by Deleted on May 9, 2023 22:00:30 GMT
That is what Tom Gorringe has confirmed on Twitter. Not the cheapest way to raise cash but I guess Wael wants to keep his funds for the footballing side of the club. Do you have a link to the tweet/reply? |
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Post by Dirt Dogg on May 9, 2023 22:08:30 GMT
Would’ve took out a Wonga loan instead.
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Post by aghast on May 9, 2023 22:30:29 GMT
And there it is, the fanbase that must know EVERY SINGLE detail otherwise they’ll completely lose their minds by default. So strange. Tom Gorringe, judging by his reply, doesn't seem quite as gobsmacked by the natural curiosity of a fanbase as you appear to be. So strange. |
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Post by Deleted on May 9, 2023 22:33:49 GMT
And there it is, the fanbase that must know EVERY SINGLE detail otherwise they’ll completely lose their minds by default. So strange. Tom Gorringe, judging by his reply, doesn't seem quite as gobsmacked by the natural curiosity of a fanbase as you appear to be. So strange. Football fans in wanting to know why the club they support has external debt for the first time in 7 years shocker. |
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Post by axegas on May 9, 2023 22:44:23 GMT
You’d have to imagine Wael is fairly confident in his ability to pay the debt off quickly otherwise he wouldn’t be taking out a charge with the sale of the land in the future pipeline as part of any deal to move to the FM.
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Post by gashead1981 on May 9, 2023 22:45:01 GMT
Technically it’s purchasing a huge asset for the club.
There will be a costing exercise behind it to prove upon application and you don’t go spending neat cash on an asset purchase, you would always finance it somehow whether it’s from an investment company, bank, mortgage or a specialist finance company.
As long as the terms are competitive, it’s the right way to do it.
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Post by gasandelectricity on May 9, 2023 22:51:21 GMT
It’s a bit like paying out 10k for a home improvement which might save you 20k over the term of a loan.
Why pay out the cash in full now when you can borrow it and spend the cash on something more interesting whilst still making money on balance when payments are considered.
Basic business.
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Post by dudelebowski on May 10, 2023 3:47:31 GMT
And there it is, the fanbase that must know EVERY SINGLE detail otherwise they’ll completely lose their minds by default. So strange. Tom Gorringe, judging by his reply, doesn't seem quite as gobsmacked by the natural curiosity of a fanbase as you appear to be. So strange. Must be why he couldn’t be bothered to reply with more than one word😁 “To stop meltdowns”, bit stronger than curiosity that. |
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Post by Topper Gas on May 10, 2023 4:41:47 GMT
It’s a bit like paying out 10k for a home improvement which might save you 20k over the term of a loan. Why pay out the cash in full now when you can borrow it and spend the cash on something more interesting whilst still making money on balance when payments are considered. Basic business. Given Wael has never previously seemingly taken on external debt, even when he developed The Quarters, it seems a bit odd timing to do it now when we're looking to eventually sell the ground and move to the Mem. At least its a sign the stand is likely to be going to cost a substantial sum, so should be a decent one when constructed |
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Post by gashead1981 on May 10, 2023 6:22:42 GMT
It’s a bit like paying out 10k for a home improvement which might save you 20k over the term of a loan. Why pay out the cash in full now when you can borrow it and spend the cash on something more interesting whilst still making money on balance when payments are considered. Basic business. Given Wael has never previously seemingly taken on external debt, even when he developed The Quarters, it seems a bit odd timing to do it now when we're looking to eventually sell the ground and move to the Mem. At least its a sign the stand is likely to be going to cost a substantial sum, so should be a decent one when constructed Fair point, but the quarters is an entirely different project than the stadium as it doesn’t earn any income as such, so the only thing it could be is mortgageable or sold to an investment company when built in return for a huge lease of say 250 years. The rule in business is cash flow is always king. So if you can minimise your cash spend, then do so. As Mem generates money there would be a the cost of the stand /cost per seat price x the minimum number of games plus additional revenue. That would give a cost of the stand over a fixed period and would keep Waels millions in the bank. Clearly the numbers add up for a finance company to be able to do it. Be interesting to know how much the stand is costing exactly but this is absolutely standard procedure in business and nothing to worry about. You only need to worry if the club fails to make those payments, but given Wael has capitalised debt 3 years in a row I don’t think there is much to be concerned about. |
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Post by Deleted on May 10, 2023 7:01:53 GMT
Tom Gorringe, judging by his reply, doesn't seem quite as gobsmacked by the natural curiosity of a fanbase as you appear to be. So strange. Must be why he couldn’t be bothered to reply with more than one word😁 “To stop meltdowns”, bit stronger than curiosity that. One bloke on Twitter said it so it must be true |
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Post by Henbury Gas on May 10, 2023 7:15:07 GMT
It’s a bit like paying out 10k for a home improvement which might save you 20k over the term of a loan. Why pay out the cash in full now when you can borrow it and spend the cash on something more interesting whilst still making money on balance when payments are considered. Basic business. At least its a sign the stand is likely to be going to cost a substantial sum, so should be a decent one when constructed its a requirement of our new American Silent Partners simples |
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Post by mftc on May 10, 2023 7:26:04 GMT
I would assume the costs would be covered pretty soon;
*David Bright should have some large sponsorship deal in place
*the extra revenue that will be generated
*Although minor, the reduction in costs with the current SW stand rental fees
If these don't cover the costs, maybe the 50/50 emphasis could be put on "make a stand" rather than the youth team and a new marketing of the 50/50 could lead to increased uptake.
As we are not really seeing any Bristolian youngsters coming through maybe actually seeing a stand presents something more tangible?
Even something really simple like Wael or Rossiter (injured, suspended player) or Randall (legend invited as SC guest to collect their cap) etc doing the 50/50 draw and having a picture with the winners could be a good incentive for some. It could also seem like a mini prize draw in itself.
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Post by gashead1981 on May 10, 2023 8:33:39 GMT
Just doing some rough maths on it all.
Having done some sponsorship at the mem myself over the years I know what the rate card is for sponsoring stands etc.
Brunel would have paid around £12k for the season sponsorship of the south stand and the Southwest stand would have been in the region of £7k per season. Given that the new stand will in effect be one stand, larger, with more of a presence I could imagine the cost of that would be about £20k per season.
Add in the ticket cost per seat per match would give you a real base figure. 3500 seats x £22.00 x 23 games = £1.77m per season.
Add in match day revenue from food and drink. I don't know what that figure is but if every seat spent £4.50 that's £15.7k x 23 = £362k.
Then of course there is the possibility of blue ribband cup games should we progress to the big club rounds to add to the revenue.
So a new stand will gross us around £2.2m per season, meaning that if it costs £5m to build it would be paid for after year 3 but we can spread the liability further for a cost of 3%, say 5 years and maximise the cash flow into the playing budget and gives us much greater flexibility fiscally.
The pressure on the club though would be to perform on the pitch and make this a draw for fans, but given that we have put 12k in the stadium when we were in the conference then we should be able to do it in L1.
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