THE GROUND

[Number6]

Stadium improvements would generate extra income to pay a mortgage.Do some people really not understand in 2007 how a mortgage works?

There are very few houses bought without a mortgage based on a persons future earnings.There are very few ground improvements paid for in advance,look at Man U,Man City,Chelsea,Arsenal, West Ham etc....Its called speculate to accumulate. It seems to have left a few people in Thanet behind!

[Frankie100]

But the worry has got to be that the land is owned by a council and has been seen time and time again if there is a change in administration what ever was previously agreed get thrown out by the new lot.

[Number6]

A major problem has been that the club seems to have put lots of unrealistic looking schemes that were linked to other people trying to make money out of the land.Not exactly a recipe for success!

[Frankie100]

Realise it is not just the fault of one side. But when in conversation with councillors at a Legion do, when they try a claim how they have bent over backwards to support the club and that they have done everything by the book I struggled first to stop laugh then to tell them exactly what I thought of them.

[Number6]

Your right Frankie, its not all the fault of one side. But Thanet Council are duty bound to look at how realistic any planned scheme is. And the proposals that went forward to them were not realistic.

 

A plan of phased ground improvements with a real business plan would not have been turned down.

Its hardly rocket science if the club wanted to build a stand for half a million. They could first get half paid for by grants and get a 15 year mortgage for the other £250K. The club would then have to pay around about £30K for the next 15 seasons.

Thats what should have happened before we went to Dover and Ashford and its what should be happening now.

[Pagey]

There is not one bank that would lend a non league football club £250K without security

[Number6]

Originally Posted By: The Pagester

There is not one bank that would lend a non league football club £250K without security

Banks lend money based on the likelihood of the lender being able to pay it back. £30K a season is not a lot for a club with gates of 7 or 800.It would be a bit of a no brainer for most financial institutions.
Do you have a mortgage yourself?

£250K is a relativelly small amount of money even in Thanet many houses are worth considerably more than that.

[Pagey]

with all due respect I deal with raising finances in my line of work. The bank would not lend money unless it has security.

 

For a mortgage it would be a house

 

For a football club it would be the ground, Margate don't own their ground.there lies the problem

 

And as for a club repaying 30K a season, have you seen the most recent accounts for MFC. Clubs at this level very rarely make a profit

[MargateFan]

One thing therefore puzzles me...

If it were that easy and straightforward why haven't all the clubs done it?

 

[Coffin Ender]

There are plenty who have.

[Number6]

Originally Posted By: The Pagester

with all due respect I deal with raising finances in my line of work. The bank would not lend money unless it has security.

For a mortgage it would be a house

For a football club it would be the ground, Margate don't own their ground.there lies the problem

And as for a club repaying 30K a season, have you seen the most recent accounts for MFC. Clubs at this level very rarely make a profit

With all due respect you deal with finance in your job?
30K is hardly a huge sum is it?
How much money do you think the groundshare cost at Dover?
How much advertising revenue do you think was lost?
How much in gate receipts?

If we were talking about millions of £s here without the security of owning the ground you may have a point but were not we are talking about £250K initially which could be paid over 15 years.
Banks lend money to businesses every day on the basis not only of security as in land/bricks and mortar but there ideas.

[Number6]

Originally Posted By: MargateFan

One thing therefore puzzles me...
If it were that easy and straightforward why haven't all the clubs done it?

Have you noticed how many football grounds there are round the country? How do you think that most of them were built? Money up front?

[seasidesteve]

clubs with less income than us as well

[MargateFan]

I don't know. Please enlighten me.

[michael]

How long left on the lease-surely less than 10 years, so max. repayment period surely would be length of the lease,which if circa8/9 years would bump payments up somewhat.

 

But as others say,if you have a realistic business plan/idea with some of your own income going in, a funder would be supportive.

[differentgame]

Seems that there are/were only two ways.1) Unlike many such towns, especially those with a working class majority and industry ruled there was nearly always a local who "came good" and put money into the club, Margate way back in the days when it was a boom town and Arsenal used us as a nursery, money came in and went out just as quick and was spread over a large number of concerns. The big companies who have come and stayed and or gone have their roots elsewhere and are not interested. Pfizer is a classic, their sports facilities are some of the best in Thanet. I can not see a benefactor stepping in. 2) an investment that can guarantee a return, it would have to be some ground that attracted families on a day out basis to shell out £50 or so each home game.

I think we have to except that there is a big gap between reality and wishing. I’d be happy to see the drainage done and a decent training/reserves pitch on Tivoli. Oh yes, and to win the league.

Up the Gate

 

[bigtw]

With all due respect the pagster is correct and number6 lives in cooko land just look at the finacial report from the football league from conference through to the premier league only 2 clubs made a profit in season 2004/2005 and the rest lost. So what finacial institution will lend a club on the strenght of their future earnings when even the best clubs can't earn money

[Margate Martian]

Well as i've always said in the past I wont believe it until I see it!!!!!!

[Pagey]

I think that is now most peoples opinion