Sale of only two flats explains Wenger's transfer policy?
Mortgaged?
By Boris Mellor September 13 2009
According to last week's Guardian, the "Arsenal have sold only two flats at their Highbury Square development in the past 13 months, according to documents lodged at the Land Registry.
Having previously received deposits on 235 units in the first 12 months of their release in June 2006, and another 282 the following year -
booming sales figures led the Arsenal chairman, Peter Hill-Wood, to announce in the club's interim accounts in February 2008 that the project would turn over £350m."
The hoped for bonus from Highbury Square would have given Arsenal an opportunity to pay off some debt and buy players. However the credit crunch has seen sales trickle to a halt and 60 units remain for sale.
The Guardian believes that, "Arsenal will have money troubles if there are similar restrictions on their £133m loan on the Highbury Square development due for repayment in April 2010, although there is confidence about the progress of refinancing negotiations. Indeed, although the club's football and property operations are separate, their ability to raise a net £29m through player sales will not have displeased lenders."
The problem could be compounded if many of the sales for which they received deposits failed to complete. Arsenal are yet to make these figures available.
Ivan Gazidis has argued that, "the worst-case scenario at Highbury Square is for the club to break even on its investment."
Even if Ivan is right that will still mean that the main Arsenal debt on the new stadium remains untouched.
A year ago when Arsenal Times argued that the Credit Crunch would derail Arsenal plans some readers dismissed the idea, saying that loyal supporters would continue to buy them. They forgot that the banks have no loyalty to Arsenal, and that supporters with empty pockets can't spend.
This probably explains why Wenger has not spent the bonus from Adebayor and Toure. Things will remain tight for a long while yet.
Sale of only two flats explains Wenger's transfer policy?
Posted by: Arsenal Times (IP Logged)
Date: 13/09/2009 15:22
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Edited 1 time(s). Last edit at 2009:09:15:21:30:24 by Padre Pio.
The problem is here...once you venture into something without having a clue of the risk involved you got to pay the price for that. But things will change don't worry, it will change after a couple of painful years.
Padre are you sure of the guardian report, cos I seen a report last week that only two depositors had withdrawn fully and that all other deals were either completed or still in the process of being done and that banks taking time to give mortages was the hold up on most deals. So did you actually read the report itself or take it from another website as I know some websites totally misquoted the report I seen last week but I'm not sure which broadsheet ran the story I read.
I am absolutely certain. Its not saying only 2 flats sold in total. Its saying only 2 sold this last year.
There are 60 unsold and that is basicaly the profit on the scheme.
Also nobody knows how many failed to complete the original sales.
It just sounds totally opposite to the article I read, I had intended to post a thread on it last week during the slow international week but something came up and I forgot, so was very suprised to see this story that is almost the complete opposite. Will be interesting to see what comes out in the accounts next month and what is said at the AGM.
One thing that suprises me Padre is that if the Guradian story is accurate how come SKY, SUN, Mirror etc have not latched on to it as they love nothing more than a stick like this to beat Arsenal with
eduardo It just sounds totally opposite to the article I read, I had intended to post a thread on it last week during the slow international week but something came up and I forgot, so was very suprised to see this story that is almost the complete opposite. Will be interesting to see what comes out in the accounts next month and what is said at the AGM.
One thing that suprises me Padre is that if the Guradian story is accurate how come SKY, SUN, Mirror etc have not latched on to it as they love nothing more than a stick like this to beat Arsenal with
Because their average clientele aren't too likely to understand or be interested in stuff about property prices. Unless Frank Lampard is buying a flat as an illicit LOVE NEST then they'll be RIGHT ON IT.
ah but a big headline of Arsenal in finalcial meltdown would get readers attention and now with the mirror having a dedicated football site I'm sure they would have picked up on it. Would just like to know why there are two so totally opposite stories on the same subject run in the same week and which one is accurate
It doesnt say financial meltdown, but it does mean the club is under financial pressure. It is well known they have to renegotiate the redevelopment loan.
They havent even started on Queensland Rd and they spent a fortune on that
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