alegend wrote:
Was told Leeds are renting the new stands so it does not show on there balance sheet
Leeds put in the £5m of cash that they'd built up over the past decade or so of profits.
The balance was arranged via Legal & General and effectively Leeds Council have guaranteed it which reduces the interest charges. The structure however is very involved - but Leeds couldn't care less whether the debt shows on their Balance Sheet, it's more sensitive for Yorkshire though and it facilitated the council's involvement.
In summary, Leeds and Yorkshire have rented the ground that the new stand is built on to Legal & General, who have paid for the construction which is then leased to Leeds council who then sublet it to the two clubs. The clubs then have a provision to buy for £1 at the end of the deal. Ultimately the clubs end up paying but this arrangement made it more flexible and more affordable.
Whether it would have happened without council involvement I don't know, probably as YCCC needed it to happen. But any club which doesn't have the support of their local authority (as Cas and Wakey seem to have done on and off over the past few years) will always find it hard not just in financial support but in smoothing through all the planning issues.
