Falmer Finance

[Billy the Fish]

Much as we'd all like to be reassured, I think it's pretty obvious that the complete financial package is not yet in place as otherwise the club would have announced it. I suspect that you have hit the nail on the head in your supposition that they are hoping to conclude a deal closer to April next year. The worry is that, if anything, things may well be looking worse at that stage.

I'd imagine that to be the case, but what is the club supposed to do? If they are trying to secure more funding then potential backers aren't going to be too happy if Perry starts publicly declaring we have £X amout of money from organisation X.
It's also not going to look very good if they come out and say 'sorry lads, we haven't got the money yet, hopfully we'll get some later'. Everyone would go apeshit.

The best thing they can do is keep tight lipped about the whole thing, it's the business of the management and the backers, not the fans.

 

[The Large One]

I have no idea what size audience that show has, but my guess is that it's not going to be large. I may be completely wrong of course.

Anyway - given Martin's blog exists - wouldn't it make more sense for him to provide an update via that medium? Or are we all supposed to play "guess which media Martin will crop up on today"?

Is this show thing available to download etc via the internet? Like a podcast? Or actually a podcast?

LISTEN AGAIN is now up.

RadioReverb | Community Radio | Brighton, UK: The Albion Roar

 

[Buzzer]

The best thing they can do is keep tight lipped about the whole thing, it's the business of the management and the backers, not the fans.

And in that succinct sentence we have the answer. Sorry fellow BHA fans but it's a need to know and we don't need to know.

Sure - we'd like to know and we have an oblique interest in this but no way near enough to be privy to that info. Unfortunately, it just leaves us worrying and waiting but I've grown quite stoic about Falmer. I'll believe it built when I see it.

 

[The Albion Roar]

Just in case there are any problems with downloading the listen again here's the process

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The show is normally updated on the day on transmission - so sorry it is a bit late this week.

Please note our programme page is in the process of being updated (bit out of date) as it has old pics and needs our new logo, new pics and additional text added - so will post when it's been updated - also our own website is on the way and will send details when up and running

Cheers for your patience

Jonny

 

[SICKASAGULL]

Bozza you are spot on,even Liverpool and Everton are having trouble in getting financial backing for their new stadiums,how can anyone believe that a club with our very limited financial history will be successful.

 

[The Large One]

Bozza you are spot on,even Liverpool and Everton are having trouble in getting financial backing for their new stadiums,how can anyone believe that a club with our very limited financial history will be successful.

I don't think, with all due respect, you've been paying attention.

Have a listen to the radio show at the very least.

 

[Brian Fantana]

My limited understanding of the situation, which might be COMPLETELY wrong, was that the stadium was going to cost £60 million of which £20 million had to be borrowed. If this is the case, who is going to lend us that in the current climate given that Liverpool are having a tough time with their loans?

 

[Kaiser_Soze]

Agreed. If neither West Brom nor West Ham can tie up deals for front-of-shirt sponsors to grace the screens of football fans worldwide, and I concede I make the assumption that they are trying, then the naming rights for the stadium of a Division 3 football club is not likely to be a golden ticket right now.

West Brom had offers of £800k from Carlsberg and another major sponsor but the Chairman feels that they can get £1 million at least. He is still waiting for that offer-its not that they cant tie up deals-they are just choosing not too.

Also if West Ham had been paid up front (i dont know if they have or not) then they arent going to be desperate for the cash straight away.

 

[The Large One]

My limited understanding of the situation, which might be COMPLETELY wrong, was that the stadium was going to cost £60 million of which £20 million had to be borrowed. If this is the case, who is going to lend us that in the current climate given that Liverpool are having a tough time with their loans?

Liverpool and Brighton's scenarios are different.

Supporting finances for Brighton's stadium are not dependent on the property market. The main supporting finance is from an education facility (Brighton & Hove City College), which is not subject to uncertain market-led fluctuations.

 

[Uter]

My limited understanding of the situation, which might be COMPLETELY wrong, was that the stadium was going to cost £60 million of which £20 million had to be borrowed. If this is the case, who is going to lend us that in the current climate given that Liverpool are having a tough time with their loans?

I don't know what proportion of the £60M is going to come from bank loans, but if it is £20M then this will cost about £1M a year to service. The extra revenue from Falmer will be far in excess of that.

I don't know who will lend us the money, but the fact that the council have given us the land and work is about to start is evidence that, at the very least, somebody has agreed to do so.

 

[Kaiser_Soze]

My limited understanding of the situation, which might be COMPLETELY wrong, was that the stadium was going to cost £60 million of which £20 million had to be borrowed. If this is the case, who is going to lend us that in the current climate given that Liverpool are having a tough time with their loans?

Liverpool's owners already have a lot of debt from other loans which will adversely affect their ability to loan money. As I understand it, the majority of our income over the last few years has been private investments which dont HAVE to be paid back and therefore dont have to be classed as loans.

 

[Alex Alex Dawson oo! oo!]

Liverpool's owners already have a lot of debt from other loans which will adversely affect their ability to loan money. As I understand it, the majority of our income over the last few years has been private investments which dont HAVE to be paid back and therefore dont have to be classed as loans.

There is £300M or so worth or borrowings used by the two americans to buy the club - NB they, like the Glaziers at Man Utd didn't use their own money. This £300M is essentially charged against Liverpool FC who are responsible for the loan repayments; according to the Liverpool Echo a few months back the loans will have to be renegotiated in early 2009.

 

[Kaiser_Soze]

There is £300M or so worth or borrowings used by the two americans to buy the club - NB they, like the Glaziers at Man Utd didn't use their own money. This £300M is essentially charged against Liverpool FC who are responsible for the loan repayments; according to the Liverpool Echo a few months back the loans will have to be renegotiated in early 2009.

Thank you for providing further info-it still backs up my point. Any asset with £300 million already borrowed against it will not be ideal to use to gain further credit. As I understand it, there is very little, if any money borrowed against the Albion?

 

[The Oldman]

I don't know what proportion of the £60M is going to come from bank loans, but if it is £20M then this will cost about £1M a year to service. The extra revenue from Falmer will be far in excess of that.

I don't know who will lend us the money, but the fact that the council have given us the land and work is about to start is evidence that, at the very least, somebody has agreed to do so.

We should also get confidencefrom the fact that SEEDA have agreed the £5 million or so for the necessary road works, the design of which is already underway. Plus the club will get a sustantial grant from the Football Stadium Trust (may not be the correct name) when the stadium is completed. All this plus the fact that the main stadium contracter has looked at the business plan and is satisfied enough to sign the contract this week according to the club. The contracter would be taking a big risk financially if they did not think they will get paid over the contract period.

 

[countrygull]

I have been one of those who has been somewhat concerned by the lack of information coming from the club in the face of the credit crunch. However, having just listened to Martin Perry, I can truly say I feel somewhat happier. I don't believe contractors would start a project if the funding were to be in jeopardy. I also hear what he says that we will get money due to the stadium being used in part as a college: and that will be public funding which I think will happen. It will leave us with a `part mortgage` to pay off - as opposed to a `100% mortgage` - which I do believe would have been jeopardised by the financial situation. Whilst I shall not adopt the `believe unquestioningly everything the club says` attitude of some on here, I do believe Martin Perry can make it work. Could still be a rocky road ahead but I think we'll get there.

 

[Uter]

Once work is underway I think we should also take heart from the fact that to my mind only one stadium has had to stop half way through construction due to funding problems; Oxford United's, and even that was built eventually.

 

[MARKO]

With the global slowdown and commodity prices falling ..ie steel etc..doesn't that reduce the cost of the stadium ?...

 

[The Large One]

With the global slowdown and commodity prices falling ..ie steel etc..doesn't that reduce the cost of the stadium ?...

Listen to the radio show.

 

[Deleted User X18H]

What Harty's?

 

[The Oldman]

What Harty's?

He meant the Radio Reverb broadcast but essentially what Martin Perry says about steel prices is that once the contract is signed the price of steel is the concern of the Buckingham Group. The contract makes he contractor take the risk as to whether steel price goes up or down.