Martin Lol Posted April 2, 2007 Share Posted April 2, 2007 Wasn't there an article before Christmas saying this is what Belgravia wanted to do if they bought the club? Could they be financing the hotels and stand? I believe you're correct. Maybe it's a better option for them (or someone like them) to fund the development rather than buy the club lock stock and barrel. Link to post Share on other sites More sharing options...
Parky Posted April 2, 2007 Share Posted April 2, 2007 But surely having an extra 8,000 or more seats in the ground is a way of providing continuous revenue to the club, rather than just receiving a quick influx of money for the current manager to waste? I agree that we need a good squad and good results to fill 52,000 seats these days, let alone 60,000, but there will surely be plenty of money available in the summer for the squad anyway and certainly enough to get the vast majority of the players we "need". In a time where the club are criticised heavily for not building towards the future, I'm personally impressed by the proposals on hand, although I do think the timing of the announcement is nothing more than an appeasement. I wouldn't be surprised if none of it happened or if the ground expansion plans were rejected, but I certainly couldn't fault NUFC/Shepherd if there is substantial belief/truth behind all of it. If it does go ahead then it's encouraging to see us continuing to move forward on the business side of things and into realms where our annual income should only increase because of the sheer number and quality of developments/businesses located in and around the stadium. Of course, keeping Premiership football is absolutely essential to keeping the ground full and if we want to fill an extra chunk of seats we will need to improve on our current plight - before the stand is fully extended, at least (probably gives us about 3-4 years, I'd assume). Also, having a ground of 60,000+ offers far more than just money to the club, when you think about it. It makes more sense to me than getting a one-off injection of cash that has no gaurantee of being spent correctly in the first place. Totally agree that receiving a one-off chunk of money, no matter how large or small, is no guarantee that it will be spent wisely. But that's what the Directors are in place for, to ensure that the money coming in is utilised to its maximum potential for the benefit of the shareholders. Offering another 8k seats in 3/4 years time may be beneficial to the club. If the club is successful, then there is every likelihood that those extra seats will be filled. I would see the concern being would the seats be filled if the team continued to perform for the next 3/4 years as it has for the last two season? Until Souness went, relegation last season was a distinct possibility. This season relegation is still a possiblity, not likely admittedly, but not yet ruled out. My overall impression of most clubs is that success on the field is important to ensure off field success follows. Sure, there are exceptions, but generally I would see it as more beneficial to NUFC to have a successful team now and for the next 3/4 years rather than going to an enlarged stadium at the end of that period. I would be more receptive to the idea of 60k seats in 2011 if I saw now plans to overhaul the playing staff, get the wages under control, get motivation on the pitch etc etc. The stadium plans are laudable but I just think there are other matters which need attention first. They are different entities though MJ the playing side and the team and this what looks on paper a highly lucrative private development. Link to post Share on other sites More sharing options...
Rich Posted April 2, 2007 Share Posted April 2, 2007 And who can say that the ground expansion isn't essential to creating more space for potential businesses within the ground: ala Shearer's and the Metro station, etc. Obviously it's difficult to debate when we don't know the entire crux of the matter, but while I do agree with MJ in the utterly obvious assumption that the team will need to do well to fill the stadium, I'd far rather we built-up the stadium than gave Shepherd and Roeder an extra wedge of cash to spend. Link to post Share on other sites More sharing options...
Parky Posted April 2, 2007 Share Posted April 2, 2007 And who can say that the ground expansion isn't essential to creating more space for potential businesses within the ground: ala Shearer's and the Metro station, etc. Obviously it's difficult to debate when we don't know the entire crux of the matter, but while I do agree with MJ in the utterly obvious assumption that the team will need to do well to fill the stadium, I'd far rather we built-up the stadium than gave Shepherd and Roeder an extra wedge of cash to spend. IF we are getting a stadium expansion without having to pay for it....This is a MASTER STROKE from Fat five Freddy. blueyes.gif Link to post Share on other sites More sharing options...
Guest optimistic nit Posted April 2, 2007 Share Posted April 2, 2007 knows alot about business, feck all about football, has been said once or twice. Link to post Share on other sites More sharing options...
Quailman Posted April 2, 2007 Share Posted April 2, 2007 It is as simple as that. Freddy is a businessman and by the looks of things he has pulled off a tremendous deal that hasn't set him back at all. The fact is, even though we aren't pulling in full attendance’s in a lowly position and abysmal performances we are still get huge numbers! In the premiership at home we have pulled in around 50k at all points of the season, I see no reason why we couldn't manage 60k! The thought of us getting relegated this season or any season in the near future is ridiculous! Ok, so i'm an optimist... but come on just look at our track record, the highs and lows we have gone through! As Newcastle supporters we should try to look on the brightside of things, I hate all this pessimism... we have to live with what we've got! So 60k and this mega business deal is helping Newcastle pull in the right direction! Link to post Share on other sites More sharing options...
johnnypd Posted April 2, 2007 Share Posted April 2, 2007 fantastic news but it probably won't be up and running for another 5 or so years and by then anything could change. i suspect the timing of the announcement has been brought forward to try and lift morale around the club, which is no bad thing really. Link to post Share on other sites More sharing options...
wor jackie Posted April 2, 2007 Share Posted April 2, 2007 i'm dreading the cup nights at sjp in mid-week when there will be 25,000 in a 60,000 stadium! better get a good team assembled soon mr shepherd!! Link to post Share on other sites More sharing options...
Guest thommo78 Posted April 2, 2007 Share Posted April 2, 2007 Wasn't there an article before Christmas saying this is what Belgravia wanted to do if they bought the club? Could they be financing the hotels and stand? I believe you're correct. Maybe it's a better option for them (or someone like them) to fund the development rather than buy the club lock stock and barrel. Total speculation but if you generate an average income of around £1000 per seat off season ticket, cup games, food & beverages, merchandise etc then 8000 extra seats generates around £8m per year for the club in extra revenue. In anyones book, any business who can expand revenue by 8 million a year for life should take that opportunity. Coupled with the lease from the ground this is a very lucrative deal for the club!!! Link to post Share on other sites More sharing options...
Quailman Posted April 2, 2007 Share Posted April 2, 2007 Actually you raise a good point, our cup game attendances have been awful! I don't understand why? Perhaps the lack of expectation in recent years, but FS needs to turn things around with a large cash injection in players! Link to post Share on other sites More sharing options...
Parky Posted April 2, 2007 Share Posted April 2, 2007 Wasn't there an article before Christmas saying this is what Belgravia wanted to do if they bought the club? Could they be financing the hotels and stand? I believe you're correct. Maybe it's a better option for them (or someone like them) to fund the development rather than buy the club lock stock and barrel. Total speculation but if you generate an average income of around £1000 per seat off season ticket, cup games, food & beverages, merchandise etc then 8000 extra seats generates around £8m per year for the club in extra revenue. In anyones book, any business who can expand revenue by 8 million a year for life should take that opportunity. Coupled with the lease from the ground this is a very lucrative deal for the club!!! Agreed. THIS IS A MASTERSTROKE. blueyes.gif I give Freddy his due...Quite a counterstrike he has been beavering away in the background with. Link to post Share on other sites More sharing options...
Guest Gemmill Posted April 2, 2007 Share Posted April 2, 2007 Actually you raise a good point, our cup game attendances have been awful! I don't understand why? Perhaps the lack of expectation in recent years, but FS needs to turn things around with a large cash injection in players! You don't understand why? Ticket prices, poor quality opposition and the fact that the games are on TV. Plus the fact that we are shit. Link to post Share on other sites More sharing options...
Willow Posted April 2, 2007 Share Posted April 2, 2007 Before we go crazy with glee..........has this offer even been accepted yet? I'll wait until we get the green light before I start to grin ^-^ Link to post Share on other sites More sharing options...
Guest Gemmill Posted April 2, 2007 Share Posted April 2, 2007 Wasn't there an article before Christmas saying this is what Belgravia wanted to do if they bought the club? Could they be financing the hotels and stand? I believe you're correct. Maybe it's a better option for them (or someone like them) to fund the development rather than buy the club lock stock and barrel. Total speculation but if you generate an average income of around £1000 per seat off season ticket, cup games, food & beverages, merchandise etc then 8000 extra seats generates around £8m per year for the club in extra revenue. In anyones book, any business who can expand revenue by 8 million a year for life should take that opportunity. Coupled with the lease from the ground this is a very lucrative deal for the club!!! We're not even going to sell as many season tickets as last year though - there's no waiting list anymore, the ones we sell at the minute are the extent of the demand for them. So it's not an extra £8m revenue guaranteed at all. It's probably just an extra 8000 empty seats. Link to post Share on other sites More sharing options...
Rich Posted April 2, 2007 Share Posted April 2, 2007 Wasn't there an article before Christmas saying this is what Belgravia wanted to do if they bought the club? Could they be financing the hotels and stand? I believe you're correct. Maybe it's a better option for them (or someone like them) to fund the development rather than buy the club lock stock and barrel. Total speculation but if you generate an average income of around £1000 per seat off season ticket, cup games, food & beverages, merchandise etc then 8000 extra seats generates around £8m per year for the club in extra revenue. In anyones book, any business who can expand revenue by 8 million a year for life should take that opportunity. Coupled with the lease from the ground this is a very lucrative deal for the club!!! We're not even going to sell as many season tickets as last year though - there's no waiting list anymore, the ones we sell at the minute are the extent of the demand for them. So it's not an extra £8m revenue guaranteed at all. It's probably just an extra 8000 empty seats. Exactly, people simply cannot overlook this. The proposal has the potential to be a good one if the team is improved along with it (as MJ said earlier, along with me), otherwise we're looking at another thing to add to the list that could make us "potentially" decent - rather than helping us out any in the short-term. Link to post Share on other sites More sharing options...
Parky Posted April 2, 2007 Share Posted April 2, 2007 I think this is a good thing. And I don't want to talk it down. Link to post Share on other sites More sharing options...
thomas Posted April 2, 2007 Share Posted April 2, 2007 So any idea what kind of ££££ we're looking at for the land? Link to post Share on other sites More sharing options...
johnnypd Posted April 2, 2007 Share Posted April 2, 2007 So in short - we have land to build on but no money to do that so were getting outsiders to do it in return for extra income and a few more seats!? Or maybe its just to up the value of the club with planning permission granted that is what i thought at first, but the development is going to be built in phases, so i'd guess that planning applications will be staggered rather than one big one to boost the value of the club. Link to post Share on other sites More sharing options...
Guest thommo78 Posted April 2, 2007 Share Posted April 2, 2007 Wasn't there an article before Christmas saying this is what Belgravia wanted to do if they bought the club? Could they be financing the hotels and stand? I believe you're correct. Maybe it's a better option for them (or someone like them) to fund the development rather than buy the club lock stock and barrel. Total speculation but if you generate an average income of around £1000 per seat off season ticket, cup games, food & beverages, merchandise etc then 8000 extra seats generates around £8m per year for the club in extra revenue. In anyones book, any business who can expand revenue by 8 million a year for life should take that opportunity. Coupled with the lease from the ground this is a very lucrative deal for the club!!! We're not even going to sell as many season tickets as last year though - there's no waiting list anymore, the ones we sell at the minute are the extent of the demand for them. So it's not an extra £8m revenue guaranteed at all. It's probably just an extra 8000 empty seats. Chicken and egg though Gemmil, we need more revenue for cash to invest in the team, yet we need a better team to fill the ground to generate that revenue. However, if we think of this two years in advance instead of in our current situation a club with expanmding revenues has the potential to compete. Declining revenues and revenue stream outlets spells doom and gloom. At least this is a statement of intent and ambbition for the long term of the club! Link to post Share on other sites More sharing options...
Greg Posted April 2, 2007 Share Posted April 2, 2007 So in short - we have land to build on but no money to do that so were getting outsiders to do it in return for extra income and a few more seats!? Or maybe its just to up the value of the club with planning permission granted that is what i thought at first, but the development is going to be built in phases, so i'd guess that planning applications will be staggered rather than one big one to boost the value of the club. Aye, 3 phases all submitted individually. Link to post Share on other sites More sharing options...
NUFC06 Posted April 2, 2007 Share Posted April 2, 2007 We didnt spend any money in January during the worst injury crisis in the club's history but now we are planing this stadium extension worth 300£ I cant understand this And from where this 300£ are going to come from? I hope im wrong but i fear that we could become the next Leeds Link to post Share on other sites More sharing options...
Rich Posted April 2, 2007 Share Posted April 2, 2007 We didnt spend any money in January during the worst injury crisis in the club's history but now we are planing this stadium extension worth 300£ I cant understand this And from where this 300£ are going to come from? I hope im wrong but i fear that we could become the next Leeds Have you missed the numerous posts/articles/links that state over and over that the money is coming from outside sources? Link to post Share on other sites More sharing options...
Guest optimistic nit Posted April 2, 2007 Share Posted April 2, 2007 We didnt spend any money in January during the worst injury crisis in the club's history but now we are planing this stadium extension worth 300£ I cant understand this And from where this 300£ are going to come from? I hope im wrong but i fear that we could become the next Leeds Have you missed the numerous posts/articles/links that state over and over that the money is coming from outside sources? i'm not certain about this one, but i'm guessing that the answer could possably be yes. Link to post Share on other sites More sharing options...
Parky Posted April 2, 2007 Share Posted April 2, 2007 We didnt spend any money in January during the worst injury crisis in the club's history but now we are planing this stadium extension worth 300£ I cant understand this And from where this 300£ are going to come from? I hope im wrong but i fear that we could become the next Leeds The development are privately financed with no risk to the club. Link to post Share on other sites More sharing options...
Taylor Swift Posted April 2, 2007 Share Posted April 2, 2007 Just to add, from what I know about business, real-estate and how these sorts of things are done, this is a common way of doing business. However, another scenario which is also possible is that the club is funding the development of the hotels/casinos etc. but will let someone else come in and run it (and put a name on it eg. Hilton/Marriott etc.). Tbh, I've seen this type of deal happen more than the previous one that I mentioned. This kind of deal works well for both parties because even though the club is putting money into the development, they have a guaranteed 'return' ie. the investors (the hotel investors) have to pay a certain amount back to the club each month/year. I believe that this 'return' is being invested in the development of the ground. So technically, one could say that the money spent on the ground can actually be spent on the team, but even if this is the case, I'd rather we spend money on the ground than give it to Roeder to spend. It'd be similar to giving Souness £50m to spend, just not worth it. Link to post Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now