burnley sell ground

[slater_scott]

Since they are in debt and owe a lot of money they have sold it to clear debts, so now they are in the clear.

it has been sold to a company in which barry kilby( dingle chairman) is a major shareholder. burnley have a 99 year lease on it.


costing them £300,000 + a year, so they have a lot of money to make up.

the money recieved was thought to be in the region of £3m which imo is very poor foor a football ground AND a training facility.

http://www.clarets-mad.co.uk/news/lo...TMNW&id=190374

[Fearon1]

ive got to say im very concerned about this deal

[Steven]

why r u concerned obviously barry kilby has the needs of the club in mind and whishes to give security for the club but yeah i also agree burnley have a decent grouind thought it would be worth more tha 3 million

[Sparkologist]

Didn't it cost something in the order of six million pounds to build the two new stands about eight years ago?

[slater_scott]

its quie an unusual deal, because they dont have any money to spend on new players from what i have heard.

[Fearon1]

im concerned about this deal because burnley are selling thier only 2 assets (turf moor, and gawthorpe). who is to say barry kilby doesnt sell them onto another company, i have full trust in BK but at some point when he dies who will the ground be passed onto. We are also paying £320k rent a year, so in 10 years we will have payed £3.2m and still need to pay another £3m to buy the ground back, and we have detbs of around £3.8m so why dont they buy them for £3.8m then we can get rid of all our detbs.
There needs to be a clause in the contract where it says the only buisness BK and mr sullivan can sell turf moor and gawthorpe to is BURNLEY FOOTBALL CLUB.

[Fearon1]

We dont have any money to spend on new players YET, but why does that make it an unusual deal

[Sparkologist]

Originally Posted by Fearon1

There needs to be a clause in the contract where it says the only buisness BK and mr sullivan can sell turf moor and gawthorpe to is BURNLEY FOOTBALL CLUB.

How do you know that there isn't a clause in the sale and lease-back contract which is to this effect? Have you seen the contract?
By doing this deal, Mr Kilby has protected his investment and the future of Bunley Football Club. If the bank thought it was in its financial interest, it wouldn't hesitate to call in the loan; sentiment would not play a part in the decision.

[slater_scott]

Originally Posted by Fearon1

We dont have any money to spend on new players YET, but why does that make it an unusual deal

because the ground has been sold with no real gain.

you will not be able to take loans out now, as you have no assests to guard against and if you get in debt companys will want the money back quick.

[Fearon1]

how do you know ther is a clause in the contract

[Fearon1]

We will have no dets to pay so therefore all the profit we make (from gate reciepts, TV money, cup runs etc.) will be able to go into SC kitty to strengthen the sqaud instead of spending our profits on gettin rid of the dets.

[slater_scott]

but you do have to pay wages, £300,000 a year in rent.


who says you are going to start making profits now?

[Fearon1]

we already have been making profits, but, we have been giving the money back to where we got our loan from.

So now we dont need to pay any money to creditors so we will be able to spend the profit how we like.

[Bazf]

but you do have to pay wages, £300,000 a year in rent.


With average attendance at 12,000 and 20 quid to get in that should be 240,000 just in gate receipts add TV money and promotions and your rent is paid in one game, play 40 games a year and it now looks like a good deal.

[Sparkologist]

Take a look at this article. It is in tonight's Lancashire evening telegraph: http://www.thisislancashire.co.uk/la...ARETSFAN0.html
Perhaps this answers some of your questions, Fearon.