Turf Moor Buyback Completed
By Burnley FC
July 5 2013
Historic day as ground and training complex return to club ownershipBurnley Football Club is delighted to announce that Turf Moor and Gawthorpe are under club ownership again following the completion of a buy-back campaign developed by co-chairmen John Banaszkiewicz and Mike Garlick.
With the welcome involvement of a number of key supporters, and further investment from the club, both facilities come back under the umbrella of Burnley FC with immediate effect. Turf Moor, the Clarets’ spiritual home for over 130 years, and the historic Gawthorpe training ground were sold in 2006 to Longside Properties to resolve financial problems following the ITV Digital crisis. To read the complete article please click on the link below; |
Turf Moor Buyback Completed
Posted by: TheLongside.co.uk (IP Logged)
Date: 05/07/2013 11:05
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Buying the Turf back
Posted by: Turfite (IP Logged)
Date: 05/07/2013 08:35
Iv'e heard that Burnley have brought the ground and gawthorpe back for 3.5 million
Re: Buying the Turf back
Posted by: Dave Thomas (IP Logged)
Date: 05/07/2013 08:47
yep... methinks good news at last
Re: Buying the Turf back
Posted by: bordeauxclaret (IP Logged)
Date: 05/07/2013 09:31
Excellent news.
Just one thing though, at the time it was sold the annual rental payment was quoted at 10% of the £3.5m we received, around £350k per year then.
Now the club are saying it'll save us over £500k per year. So the rent we were paying had increased by almost 50% in just a few years, the deal wasn't as benign and beneficial to the club as had originally been mooted.
Not the first time that the perception and reality of a situation at the club have been widely differing.
BC
Prediction League Champion 2006/7
Fantasy League Winner 2007/8
Just one thing though, at the time it was sold the annual rental payment was quoted at 10% of the £3.5m we received, around £350k per year then.
Now the club are saying it'll save us over £500k per year. So the rent we were paying had increased by almost 50% in just a few years, the deal wasn't as benign and beneficial to the club as had originally been mooted.
Not the first time that the perception and reality of a situation at the club have been widely differing.
BC
Prediction League Champion 2006/7
Fantasy League Winner 2007/8
Re: Turf Moor Buyback Completed
Posted by: Foreverclaret (IP Logged)
Date: 05/07/2013 11:15
Should have been bought back outright a few years ago, with the first of the prem money.
Re: Turf Moor Buyback Completed
Posted by: claretnbooze (IP Logged)
Date: 05/07/2013 11:37
What I don't understand is how it saves us money in the short term. Don't we have to pay the bond holders off within about 4 years?
Re: Turf Moor Buyback Completed
Posted by: Dave Thomas (IP Logged)
Date: 05/07/2013 13:44
capital and interest paid back over 7 years... during that period the repayments are less than what the rent payable would have been to Lionbridge... and even as tenants the club was still paying all upkeep and repair costs
and if you are a bondholder 7 years is a long time to get yer money back
I am also told that under new planning rules... Gawthorpe is worth a small fortune...
maybe someone on here knows more about new planning rules than i do
and if you are a bondholder 7 years is a long time to get yer money back
I am also told that under new planning rules... Gawthorpe is worth a small fortune...
maybe someone on here knows more about new planning rules than i do
Re: Turf Moor Buyback Completed
Posted by: foutrelebordel (IP Logged)
Date: 05/07/2013 15:04
@bordeaux - was thinking the same thing myself.
to make a 500k saving (which nets out bond repayments) it would mean the rent nearly doubled over the duration of the contract. i heard nothing about that in the press if this is the case.
anyone with inside info know how this 500k breaks down?
to make a 500k saving (which nets out bond repayments) it would mean the rent nearly doubled over the duration of the contract. i heard nothing about that in the press if this is the case.
anyone with inside info know how this 500k breaks down?
Re: Turf Moor Buyback Completed
Posted by: claretnbooze (IP Logged)
Date: 05/07/2013 15:05
But 3.5million over 7 years is 500k a year even without interest so where are we saving money? Or am I missing something?
Re: Turf Moor Buyback Completed
Posted by: foutrelebordel (IP Logged)
Date: 05/07/2013 19:24
@claretnbooze
essentially, what they're are saying is that the difference between the rent as it stood and the interest on the buy-back bond is 500k. i'm not sure anyone knows - or has bothered to ask - what the rent stood at and what the bond investors were willing to lend to the club at.
anyway, over 7 years the year on year saving - the difference between would-be rent and actual interest rate paid on bond - the club will have accumulated a saving of 3.5m, the principal of debt. with this saving they will pay back the principal and have neither a landlord (as per previous arrangement, in BVI) or a creditor. once that has happened the club will be in a position to invest in the club.
cheers.
essentially, what they're are saying is that the difference between the rent as it stood and the interest on the buy-back bond is 500k. i'm not sure anyone knows - or has bothered to ask - what the rent stood at and what the bond investors were willing to lend to the club at.
anyway, over 7 years the year on year saving - the difference between would-be rent and actual interest rate paid on bond - the club will have accumulated a saving of 3.5m, the principal of debt. with this saving they will pay back the principal and have neither a landlord (as per previous arrangement, in BVI) or a creditor. once that has happened the club will be in a position to invest in the club.
cheers.
Re: Turf Moor Buyback Completed
Posted by: LightcliffeClaret (IP Logged)
Date: 05/07/2013 19:40
It'll come out in a few years that we've taken out a loan to buy it back.
Re: Turf Moor Buyback Completed
Posted by: foutrelebordel (IP Logged)
Date: 05/07/2013 19:45
@lightcliffe
we have.
we have.
Re: Turf Moor Buyback Completed
Posted by: ClanClaret (IP Logged)
Date: 05/07/2013 20:47
SO WEE AREn See OWNEd TO NO Fdhnjuk pay off ok Good. WE AS ONE CLARET.
Re: Turf Moor Buyback Completed
Posted by: Teasdale In! (IP Logged)
Date: 05/07/2013 21:59
So who were the people behind the company (registered in BVI) who sold the ground and Gawthorpe back to us?
And why was it in there interests to do so if they were making money from rent off us?
I'm presuming they are Burnley fans who Kilby sold to and not just some random businessmen?
And why was it in there interests to do so if they were making money from rent off us?
I'm presuming they are Burnley fans who Kilby sold to and not just some random businessmen?
Re: Turf Moor Buyback Completed
Posted by: foutrelebordel (IP Logged)
Date: 05/07/2013 22:16
@teasdale
a more pertinent question is why didn't he just lend us the money secured against ground? and why at 10%+.
a more pertinent question is why didn't he just lend us the money secured against ground? and why at 10%+.
Re: Turf Moor Buyback Completed
Posted by: ClanClaret (IP Logged)
Date: 05/07/2013 23:38
BRI, RICK AM MOTER. GO GOME ON. EVER Never US.CLARET.
LOL TRUE.
LOL TRUE.
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