Redevelopment Vote Follow Up

[theakston2k]

I thought the ROI was 6 years, not the loans? I don't remember seeing anything on the length of the plan, the only thing confirmed was it would have been interest free to the club

6 years reliant on 2 years in the championship! 

[Ƭ̵̬̊: The Artist Formerly Known as CWIG]

Where did you hear it's in 30 days?

Someone said on here he has to give more info in 30 days.

[STFC_Manc]

6 years reliant on 2 years in the championship! 

I think you have missed my question though but yes two years in the Championship is looking very ambitious to say the least.

[Batch]

Someone said on here he has to give more info in 30 days.

Ah, I said he has to be available for 30 days to answer more questions if they come.

But I don't know what happens, and when,  after that.

Sorry for the confusion.

[Batch]

I thought the ROI was 6 years, not the loans? I don't remember seeing anything on the length of the plan, the only thing confirmed was it would have been interest free to the club

It's very unclear if/how the investment is paid back and when.

Or if that has been answered I've missed it.

[STFC_Manc]

It's very unclear if/how the investment is paid back and when.

Or if that has been answered I've missed it.

I've not seen anything but Rob stated it was 6 years to repay the loan, which is why I asked.

[Batch]

I've not seen anything but Rob stated it was 6 years to repay the loan, which is why I asked.

Rob didn't say that

You can fund this development through loans, but not over 6 years.  It is the sort of thing you'd finance over 10/15/20+ years.  You would pay that back, but over a long period to reduce the outgoings, then reinvest the profit you think you can make into the running of the club.

I'd prefer that to this opaque approach Clem takes of unclear sources and terms,, loading the club with debt (because he has never switched anything to equity) and essentially keeping it hanging there.

[STFC_Manc]

Rob didn't say that

The first sentence Batch?

[Batch]

The first sentence says you shouldn't finance this over 6 years

The bit about opaque terms gives away the the terms are opaque manc

[STFC_Manc]

The first sentence says you shouldn't finance this over 6 years

The bit about opaque terms gives away the the terms are opaque manc

The first sentence says you shouldn't finance this over 6 years

The bit about opaque terms gives away the the terms are opaque manc

Implying that it has been financed over 6 years or why mention it. Which is why I asked the question.

[No Longer Posh Red]

Implying that it has been financed over 6 years or why mention it. Which is why I asked the question.

The Business plan (albeit making a rather big assumption on performance) indicated that we would make the £3m costs back in six years, so it’s fair to assume that the club would pay back the loans (which Clem admitted he would have to take out to cover the build costs) out of the additional profits.

Unless of course you believe that those profits would go elsewhere?

[RobertT]

The ownership stated a 6 year ROI, but indicated no repayment of loans in the costings on the business plan.  I said you wouldn't want a loan for 6 years - my point being there is no need to push for such a quick ROI if there are proper loans in place.  We actually have no idea what type of loans he is planning on taking, only some hint of using assets either personal or through Axis to use as security.  Something he has done in the past.  We also have no idea what the repayment requirements are for the club, because Clem/Axis will be the source - he could be planning on just loading that debt on the club with no repayment, we could be due to pay it all back in 6 years, or every month, or.......

The ROI calculation is based on the profit they are calculating each year vs the outlay.  DV's point is if we are just trying to make enough to pay it all back in 6 years, the club won't benefit.  I'm saying they should be spreading that over a longer term, paying it back, calculating the profit including those repayments and then identify that as funding to push the club forward.