Clubs Equity Releasing on their Stadiums

[Gutter Boy]

I thought this was an interesting, but bad precedent - it has come out that Derby, Sheffield Wednesday and potentially soon Villa have all sold their grounds and are then leasing them back, in an efforts to work around FFP.

You'd've thought clubs would have learnt from the problems of Portsmouth and Palace in the past what happens if you separate the ground from club.

Full story: https://www.thestar.co.uk/sport/foo...-profitability-and-sustainability-rules-66463

 

[jts1882]

You'd've thought clubs would have learnt from the problems of Portsmouth and Palace in the past what happens if you separate the ground from club.

You start obsessing about the colour of the carpet?

 

[nayimfromthehalfwayline]

I thought this was an interesting, but bad precedent - it has come out that Derby, Sheffield Wednesday and potentially soon Villa have all sold their grounds and are then leasing them back, in an efforts to work around FFP.

You'd've thought clubs would have learnt from the problems of Portsmouth and Palace in the past what happens if you separate the ground from club.

Full story: https://www.thestar.co.uk/sport/foo...-profitability-and-sustainability-rules-66463

Its roulette, thats it. A one time wind fall to hopefully capitalise on the Pl payday. But even then, Derby, Sheff Wed and Villa - should they come up - would be far from sure of staying up once they got there.

Its a ridiculous decision to take.

Reminds me of when Everton took a loan against their season ticket income and ended up skint for years on end...

Except this would be far more permanent, and even terminal...

 

[Bullet]

This is good news - we need stupid people to grind these clubs down and keep them out of our way for 20 years.

 

[Moby]

I’d presume it’s a loophole and they are selling to a ‘friendly’ party at a premium rate, then leasing back at forty five pence a year.

So. Just randomly picking a club and owner... it would be like a massively rich country backed Sheik being unable to push half a billion directly into his club, so instead his brother buys the ground for £500m and miraculously agrees a deal to lease it back for 99p per annum.

And in no way whatsoever is the money the Shiek owners and he’s just passed it to his bro to ‘buy’ the stadium with. Oh no.

That would be like, I don’t know for example, getting your brothers airline to sponsor your stadium at x30 of the market value, then just slipping him an extra £500m present in his birthday card to balance the books. No club would have the pep to do that.

 

[Baleforce]

For a club thinking of moving to a more lucrative, and existing, venue it could be a good idea...

 

[Gazza Dazzla]

I’d presume it’s a loophole and they are selling to a ‘friendly’ party at a premium rate, then leasing back at forty five pence a year.

So. Just randomly picking a club and owner... it would be like a massively rich country backed Sheik being unable to push half a billion directly into his club, so instead his brother buys the ground for £500m and miraculously agrees a deal to lease it back for 99p per annum.

And in no way whatsoever is the money the Shiek owners and he’s just passed it to his bro to ‘buy’ the stadium with. Oh no.

That would be like, I don’t know for example, getting your brothers airline to sponsor your stadium at x30 of the market value, then just slipping him an extra £500m present in his birthday card to balance the books. No club would have the pep to do that.

All sounds a bit far fetched to me. FFP would never allow something so blatant to happen.

 

[r-u-s-x]

I’d presume it’s a loophole and they are selling to a ‘friendly’ party at a premium rate, then leasing back at forty five pence a year.

So. Just randomly picking a club and owner... it would be like a massively rich country backed Sheik being unable to push half a billion directly into his club, so instead his brother buys the ground for £500m and miraculously agrees a deal to lease it back for 99p per annum.

And in no way whatsoever is the money the Shiek owners and he’s just passed it to his bro to ‘buy’ the stadium with. Oh no.

That would be like, I don’t know for example, getting your brothers airline to sponsor your stadium at x30 of the market value, then just slipping him an extra £500m present in his birthday card to balance the books. No club would have the pep to do that.

Could also sell to the owner of the club, I don't know epl FFP but UEFA would use market value so couldn't sell 25m asset for 3000m (or its very difficult to do so)

 

[jts1882]

It doesn't sound very smart long-term, although it could provide a temporary boost. Selling Elland Road caused Leeds all kinds of trouble (I think they have it back now) and I think it is Coventry who have a ridiculous dispute with their stadium owners.

That said, I think what is being done here is more an accountancy trick. The club sells to their owner for say £50m, which gives them £50m to spend outside FFP. The rent is like interest on a loan they wouldn't be allowed under FFP.