Etihad Campus, Stadium and Collar Site Development Thread

Posted on SSC

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domalino said:
I think @jrb has said that the £4m p/a rent is paid against the total, which is why Bernstein thought the pre-takeover club could possibly buy it 20 years after it was built.
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I attended a meeting of the fairly short-lived Westminster Branch of the Supporters' Club back in January 2003 at which David Bernstein spoke for nearly three hours. This was about six weeks before he quit as chairman and six months before we took up occupation of the new stadium, and the prospective move was the biggest topic of the evening.

Bernstein confirmed that the lease contains an option for MCFC to acquire the freehold at an option price that reduces over time because the rent we've already paid can be offset against it. He also suggested that it wouldn't make financial sense for City to exercise the option for at least twenty years, maybe more. In theory, of course, the financial landscape changed completely with the 2008 takeover, and what the club could reasonably afford was transformed but, for reasons that are well known, we haven't elected to exercise the option.

The provisions of the lease aren't in the public domain, but the lease is treated for accounting purposes as a finance lease (i.e. a type of lease which presupposes a change of ownership when the lease terminates). We can probably, therefore, reasonably infer that the buyout figure isn't going to be a million miles from the future liabilities recorded in the accounts as attributable to the lease.

The overall figure for lease liabilities in the 2021 accounts was, IIRC, around £64.3 million. That includes all leases and there's no breakdown, but unless someone can correct me I find it hard to imagine that we have any others under which the future payments are significant in relative terms. So around £64 million as at summer 2021 is your rough ballpark figure.

EDIT - I suppose we should also note that it's possible that the arrangement changed when the lease was amended to provide for increased rent in the event of expansion and for the sale of stadium naming rights.
 
petrusha said:
I attended a meeting of the fairly short-lived Westminster Branch of the Supporters' Club back in January 2003 at which David Bernstein spoke for nearly three hours. This was about six weeks before he quit as chairman and six months before we took up occupation of the new stadium, and the prospective move was the biggest topic of the evening.

Bernstein confirmed that the lease contains an option for MCFC to acquire the freehold at an option price that reduces over time because the rent we've already paid can be offset against it. He also suggested that it wouldn't make financial sense for City to exercise the option for at least twenty years, maybe more. In theory, of course, the financial landscape changed completely with the 2008 takeover, and what the club could reasonably afford was transformed but, for reasons that are well known, we haven't elected to exercise the option.

The provisions of the lease aren't in the public domain, but the lease is treated for accounting purposes as a finance lease (i.e. a type of lease which presupposes a change of ownership when the lease terminates). We can probably, therefore, reasonably infer that the buyout figure isn't going to be a million miles from the future liabilities recorded in the accounts as attributable to the lease.

The overall figure for lease liabilities in the 2021 accounts was, IIRC, around £64.3 million. That includes all leases and there's no breakdown, but unless someone can correct me I find it hard to imagine that we have any others under which the future payments are significant in relative terms. So around £64 million as at summer 2021 is your rough ballpark figure.

EDIT - I suppose we should also note that it's possible that the arrangement changed when the lease was amended to provide for increased rent in the event of expansion and for the sale of stadium naming rights.
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Thanks, that's exactly the kind of breakdown I was hoping for.

Seems likely if that clause does exist under those terms that the club would buy the stadium inside the next 15 years.
 
domalino said:
Thanks, that's exactly the kind of breakdown I was hoping for.

Seems likely if that clause does exist under those terms that the club would buy the stadium inside the next 15 years.
Click to expand...

Yes. Probably worth keeping an eye on the lease liabilities figure when each successive set of annual accounts comes out.
 
I wonder if the more we do to the stadium the more it makes sense to buy it ? Time also seem to make it more likely.

Didn’t some alleged plans show multiple stadiums and Arenas I would imagine that as as we do more to the stadium the less likely it is that we get a new stadium still feel the stadium will be missing something in terms of wrap and the two main side stand will lack something compared to the North South stands fixing this will I would think be very very expensive for not much gain financially

So would kinda like a new one but then what do we do with this one ?
 
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