muttywhitedog wrote:
The council would end up buying the remaining 85% for a knock-down price if it came to it.. Even though there are upkeep costs, having 40 sporting fixtures there a year, plus anything else that it can be hawked out for could make it pay for itself. Plus, there is no way on earth they'd allow two sporting teams in Wigan to become homeless.
The sticking point is at the moment it comes along with a loss-making football club who are about to lose most of their saleable assets, still have massive outgoings and have no income stream for the next 6 months.
From what I can see in the accounts the stadium Management company has debts of >£5m to the football club and previous owners.
The Administrator will have a duty to realise assets to repay creditors. I amagine there are restrictive covenants around use of the land on which the stadium is built which could render it pretty worthless for redevelopment.
The assets could be sold to a party that charges rent large enough to make it breakeven which could be bad news for the Warriors. Does anyone know whether the lease the Warriors has provides for periodic rent reviews?
