Match Preview from the Priestfield end

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bigal1946
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Match Preview from the Priestfield end

Post by bigal1946 » Fri Oct 21, 2011 4:03 pm

GillsConnect resident scribe Gordon Road Blue has penned another indepth look for Saturdays League Two promotion clash

Hopefuly match ref Gavin Ward won't be the centre of attention but don't bet on it :twisted:

http://tinyurl.com/5ra677h

slappy
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Post by slappy » Sat Oct 22, 2011 9:39 am

Just to expand on the Priestfield stadium ...
Gillingham's Priestfield stadium was sold by the club for £10.1MM in May 2008, to Priestfield Developments Ltd (PDL), a fellow subsidiary of GFC Holdings, funded by loans from Bank of Scotland of £10.1MM.

This was though basically a corporate restructuring. The £10.1MM wasn't 'new' money, it simply reduced the existing £13MM overdraft the club had with BOS. So in effect, BOS started off owed £13MM, lent £10.1MM to PDL, which paid Gillingham FC £10.1MM, which repaid BOS £10.1MM. So then BOS had a £3MM overdraft at Gillingham FC and a £10.1MM loan at PDL.

In August this year, the stadium was apparently due to be sold back to the club for £1.1MM. PDL's filings state that mortgages over the property have now been satisfied, and the club now has legal charges over the ground due to another company, Three Directors Limited. Barclays also now has charges over Gillingham FC's assets.

The joint owners and directors of Three Directors Limited just happen to be the same three directors of Gillingham FC (owner Paul Scally, Michael Anderson, and Michael Quarrington).

My guess is that when the BOS overdraft came up for renewal in May, the group said it would not be able to repay / renew it unless the £10.1MM loan was reduced or written off - the stadium at this time perhaps valued at £1.1MM. (If BOS called in the mortgage/ overdraft and owned the stadium, they perhaps think its value is just £1.1MM). So BOS then say if the club can repay the overdraft and PDL can sell the stadium for £1.1MM, they will walk away - better to lose £9MM then lose the full £13MM they were owed.

So what I think has then happened is that Three Directors Limited have scraped together £1.1MM and secured a new overdraft from Barclays. BOS lose £9MM. BOS is of course tax payer owned.

So Gillingham have had a run in the Championship, have a fairly decent rebuilt ground (for home fans), of which £9MM has been paid for by the taxpayer. Scally taking a nice 6 figure salary out of the club all the while.

slappy
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Post by slappy » Sat Oct 22, 2011 10:27 am

So it seems if you are a forced seller, like HBOS with the Priestfield, or the Plymouth administrators, a league two football ground is only worth £1.1MM to £1.6MM.

recordmeister
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Re:

Post by recordmeister » Sat Oct 22, 2011 10:41 am

&quotslappy&quot wrote:So it seems if you are a forced seller, like HBOS with the Priestfield, or the Plymouth administrators, a league two football ground is only worth £1.1MM to £1.6MM.
In Gillingham or Plymouth.

What is a 4 bed house worth in those places? More or less than in Oxford? The value of the land where the Kassam is based is, I would imagine, a lot more 'high value' than where either of those two football stadiums are built.

But still not £10m worth!

GodalmingYellow
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Re:

Post by GodalmingYellow » Sat Oct 22, 2011 12:19 pm

&quotrecordmeister&quot wrote:
&quotslappy&quot wrote:So it seems if you are a forced seller, like HBOS with the Priestfield, or the Plymouth administrators, a league two football ground is only worth £1.1MM to £1.6MM.
In Gillingham or Plymouth.

What is a 4 bed house worth in those places? More or less than in Oxford? The value of the land where the Kassam is based is, I would imagine, a lot more 'high value' than where either of those two football stadiums are built.

But still not £10m worth!
Worth much less than you might think with covenants in situ.

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