What does...

[michael]

...“It’s a leasehold situation currently, but we would love to make it a freehold situation" mean, and why would it change the whole complexion of our balance sheet?

[Samdy Gray]

Leasehold means we don't own the actual land that the stadium is built on, only the bricks and mortar. We lease (rent) the land from the council.

Freehold would mean we'd own the ground 'beneath' the bricks and mortar as well, which becomes an tangible asset which can be shown on the balance sheet. And quite a sizeable asset at that.

[michael]

So how would we go about doing that?

I imagine the price of land is relatively cheap these days?

[Samdy Gray]

Buy the freehold from the council.

And I imagine it won't be cheap at all, a piece of land the size of the CG footprint in the centre of Swindon would easily fetch a couple of million.

[michael]

Oh I know it won't be cheap-cheap, but cheaper than it was, say, 12 months ago?

[Samdy Gray]

Probably, yes.

[michael]

So, go on, give me a ball park figure here...

£10m?

[Ironside]

But isn't it a little more complicated than just stumping up the cash and signing the paperwork?

I forget the full details bus doesn't the covenant include the CG Extension?

[grubby]

Is the rent £800k a year? That figure was in my mind.

[Samdy Gray]

So, go on, give me a ball park figure here...

£10m?

Can't say central Swindon real estate prices is my forte.

But isn't it a little more complicated than just stumping up the cash and signing the paperwork?

I forget the full details bus doesn't the covenant include the CG Extension?

Yeah, something like that. But I'm talking layman's terms.

Is the rent £800k a year? That figure was in my mind.

Closer to £250k I think.

[Samdy Gray]

Closer to £250k I think.

Just checked the 2006/2007 accounts and the figure given there is £239,761.

[michael]

Whilst I am here, I found this interesting website a little while back:

http://www.footballeconomy.com/index.htm

If you go to 'Football Clubs' then you can have a nosey at everyone else's business; something that I rather enjoy doing.

[ronnie21]

I believe that the whole complex, extension, cricket ground and bowls club is subject to a covenant as it was given to the people of Swindon by the Goddard family.  This means that the council controls the whole site.  To enable the directors to buy the freehold would need a fairly complicated legal process and would the council be prepared to sell the car park as well as I would have thought that key to any future redevelopment!

[Power to people]

I'd be surprised if there wasn't a deal to be done wherby the club could say own this in conjunction with the council.

There would need to be assurances somewhere along the line though so that Fitton & co don't sell up in say 10 years and then the new board decide to sell the CG to a supermarket in 20 years time as they club is in dire need of money.

[donkey]

I'd be surprised if there wasn't a deal to be done wherby the club could say own this in conjunction with the council.

There would need to be assurances somewhere along the line though so that Fitton & co don't sell up in say 10 years and then the new board decide to sell the CG to a supermarket in 20 years time as they club is in dire need of money.

I think we'd have been closer to not having a club, if the previous lot had been able to sell the CG.  Sell it, get a crap deal on rent from a private individual/company...slowly die.  That the club don't own the CG is, to me, a good thing as it can't be sold from under us.  Maybe the ground should be managed by a trust including Council Member, Board Members and Supporters.  This may be the first time I've disagreed with the new board.  Whilst I trust them, I don't know who they'll sell to...