short term - it would improve the current position

Long term - it could be disastorous

the Finance costs are about 1.5m on the current debt the club has. So to get rid of the clubs biggest asset and pay 1m in rent per year would only improve things by 500k on the P/L.

It would be harder for the club to find finance in the future if they had no asset to hold the charge against.

In the future when the lease expires, whoever owned the stadium could ask for whatever they like in rent. (the stadium could be sold to a company rather than the council)

The loans are still serviceable as they are, but only just.

I would suggest selling the naming rights to raise a bit of cash.

Posted By: Tony Martin, Jan 14, 09:17:29