Can't really disagree with any of that. One big mistake Merry & Co made was in failing to negotiate a discount for relegation when there was an uplift for promotion built into the contract. If the stadium was to disappear overnight then the club would have to pay about £300,000 in financing to build a non-league ground (5000 capacity) and another £100,000 to maintain and service it so you could argue we are getting the current one at a bargain price."scooter" wrote:Arriving at a fair figure using normal valuation techniques is irrelevant to our situation.
We are not in an open market, as far as I know there is only one Football League standard stadium available in the locality and likelihood of getting planning for another one is zilch.
We also have the scenario where FK will have in his head what the land/stadium is worth to him without a tenant and without a planning restriction, probably more than thirteen mill, certainly more than nine mill.
We are now paying the price for playing into his hands and pushing him to do a quick deal with the ECLS.
But just focusing on the stadium is only part of the problem. The real problem is that we have a League 1 cost base of which the stadium is just one part. The club has expenses of well over £2 million. Once the stadium rent and the players have been paid the club still burns another £1 million a year!