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[Football] Frank Lampards Derbys ground



boik

Well-known member
BBC are reporting that Derby have sold their ground (on the books with a value of £41m) to one of Mel Morris's companys for £80m and are leasing it back.

What do we think? Slippery slope, or just the modern way?
 


Harry Wilson's tackle

Harry Wilson's Tackle
NSC Patreon
Oct 8, 2003
49,341
Faversham
If it wasn't a slippery slope it would have been valued at more.
 


Badger

NOT the Honey Badger
NSC Patreon
May 8, 2007
12,750
Toronto
Pride Retail Park
 


mikeyjh

Well-known member
Dec 17, 2008
4,473
Llanymawddwy
In Mel's words - To safeguard the stadium in the event of a club sale and (obviously) to polish up the numbers a bit. There are a couple of big planned developments and Mel is making plans to make more use of the bowl itself - Only used, as god intended, for footy right now.

The real headline from the financials is that Stoke gave us £1.9m for Gaz Rowett :lolol:
 


Ninja Elephant

Doctor Elephant
Feb 16, 2009
18,855
How wasteful have Derby been this season? How many players came in during each of the windows, how much was spent and the wage bill must be something like Reading's, albeit better spent. Derby just flouting the FFP rules in a different manner with the "sale" of the stadium.
 




mikeyjh

Well-known member
Dec 17, 2008
4,473
Llanymawddwy
How wasteful have Derby been this season? How many players came in during each of the windows, how much was spent and the wage bill must be something like Reading's, albeit better spent. Derby just flouting the FFP rules in a different manner with the "sale" of the stadium.

* Last season - And the wage bill was horrendous, it's heading in the right direction now and after this season will look something resembling sanity. Hopefully.
 


hans kraay fan club

The voice of reason.
Helpful Moderator
Mar 16, 2005
61,094
Chandlers Ford
Surely just a massively unsubtle FFP swerve, to boost the 'club's' income by £80m

I guess it is perfectly above board, if a bit of a nonsense.
[MENTION=31]El Presidente[/MENTION]
 


Ninja Elephant

Doctor Elephant
Feb 16, 2009
18,855
* Last season - And the wage bill was horrendous, it's heading in the right direction now and after this season will look something resembling sanity. Hopefully.

I know these numbers are for last season. What I'm saying is that this season's will be very interesting because it's been ANOTHER season of heavy spending and the number of players signed by Frank, from the outside looking in, has been huge. It's also hard to believe that when spending the money on players, or bringing in multiple loan players, that there aren't fat contracts as well. Obviously, "selling" the stadium for an £80million cash injection is ideal in the short term to cover those losses but longer term? If the Premier League dream doesn't happen, is there a back up plan? Sell the training ground, maybe?
 




FatSuperman

Well-known member
Feb 25, 2016
2,829
I know these numbers are for last season. What I'm saying is that this season's will be very interesting because it's been ANOTHER season of heavy spending and the number of players signed by Frank, from the outside looking in, has been huge. It's also hard to believe that when spending the money on players, or bringing in multiple loan players, that there aren't fat contracts as well. Obviously, "selling" the stadium for an £80million cash injection is ideal in the short term to cover those losses but longer term? If the Premier League dream doesn't happen, is there a back up plan? Sell the training ground, maybe?

Training ground must be worth ten times the amount the stadium is right, if you base the value on number of pitches or something?
 


Ninja Elephant

Doctor Elephant
Feb 16, 2009
18,855
Training ground must be worth ten times the amount the stadium is right, if you base the value on number of pitches or something?

Largely depends how big the financial hole in your accounts is. :thumbsup: Well, that and how much you're looking to blow in the next 2 windows buying players you think will help you maintain your tentative play-off place!
 


mikeyjh

Well-known member
Dec 17, 2008
4,473
Llanymawddwy
I know these numbers are for last season. What I'm saying is that this season's will be very interesting because it's been ANOTHER season of heavy spending and the number of players signed by Frank, from the outside looking in, has been huge. It's also hard to believe that when spending the money on players, or bringing in multiple loan players, that there aren't fat contracts as well. Obviously, "selling" the stadium for an £80million cash injection is ideal in the short term to cover those losses but longer term? If the Premier League dream doesn't happen, is there a back up plan? Sell the training ground, maybe?

Not this season no - Transfers balanced out, big salaries out of the door, I fully expect this seasons wage bill to be lower, which is great. As HKFC pointed out it's a bit of a nonsense though, one of Morris' companies has bought the stadium from another of Morris' companies. Nothing's changed, Derby remain FFP compliant. It's damn stupid set of rules, of course.
 




studio150

Well-known member
Jul 30, 2011
29,555
On the Border
From the DCFC Forum

Derby County have reported a profit of £14.6m after selling Pride Park stadium to owner Mel Morris for £80m.

Which meant last season they made a profit of £14.6m. So without it they lost £65.4m last season?!







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mikeyjh

Well-known member
Dec 17, 2008
4,473
Llanymawddwy
From the DCFC Forum

Derby County have reported a profit of £14.6m after selling Pride Park stadium to owner Mel Morris for £80m.

Which meant last season they made a profit of £14.6m. So without it they lost £65.4m last season?!

Nah - Stadium on the books for £41m, sold for £80m - I have absolutely no idea over what time period is accounted for but the 'profit' on the stadium is £39m
 


studio150

Well-known member
Jul 30, 2011
29,555
On the Border
Nah - Stadium on the books for £41m, sold for £80m - I have absolutely no idea over what time period is accounted for but the 'profit' on the stadium is £39m

I read the £14.6m as the profit for their financial year, not the profit on the ground sale
 




mikeyjh

Well-known member
Dec 17, 2008
4,473
Llanymawddwy
I read the £14.6m as the profit for their financial year, not the profit on the ground sale

Yeah I know - I assume you deduced that the without the 'profit' on the ground sale, Derby would have lost £65m, I was pointing out that was incorrect, though I can't tell you what the loss actually would have been.
 


Easy 10

Brain dead MUG SHEEP
Jul 5, 2003
61,674
Location Location
Training ground must be worth ten times the amount the stadium is right, if you base the value on number of pitches or something?

Can't see that being the case.

The Amex cost circa £93m, the training ground a couple of years on cost around £36m IIRC. There's a lot more infrastructure involved in building a stadium thats used by 30,000 people every other week I should think.
 


NooBHA

Well-known member
Jan 13, 2015
8,584
What it does is allow him to have a crack at the PL for another few years without having to invest any more funds personally.

Then if they don't make it he can walk away, knowing his companies have income for life from leasing the Stadium back to the club.
 


Official Old Man

Uckfield Seagull
Aug 27, 2011
8,486
Brighton
Is this allowed under FFP?
Surely the ground has been sold for double its worth, now that's a good bit of business. But a sponsor or director can only pay into a club the true value of an item. For instance, sponsorship of the shirts. The FA already have a guide price (let's say £1million) and so Derby cant 'sell' sponsorship for £10million just to get money laundered into the club.
I believe Man City are in trouble over this at the moment.
 






Lower West Stander

Well-known member
Mar 25, 2012
4,753
Back in Sussex
Looks like a standard sale and leaseback deal to me - which I would be very unhappy about as a Derby fan.

Sale and leasebacks are often seen as a way of realising hidden value in a company. The proceeds can be reinvested in return for a modest rental bill. There are loads of examples of this in the corporate world - very few retailers for example own their own stores.

The problem here is that the Morris company who has bought the ground is nothing to do with the football club (where have we heard that before?). I strongly suspect Morris did this to protect the value of his investment in the club because its valuation is much lower if they don't get promoted. I would be interested to know how much the value of the ground comprised the original purchase price.....

Never mind the next Bolton - Morris could be the next Bill Archer............
 



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