AP wouldn’t waste time in playing games. If he’s looking into it, it’s not just to use as a bargaining chip.
He’s very aware of the private equity deals available no doubt.
Whatever he’s doing seems to be from a point of view of safeguarding the long term future of the club.
Think we can safely say he’s “one of our own”

Mrs Barista wrote:

bishops finger wrote:

Don't you all think he's talking about a new stadium hoping to force the Allams into a better deal?

Yes I do, but I doubt it will have any impact. The council have had the opportunity in the past to get involved and had no appetite to do so, so I guess the Allams.will charge what they like.

I think while there will be a certain aspect of what AP has said will be to wake up people within the council I don’t think it it’s said without any substance.
He seemed quite honest about the prospect of the club having its own ground and pretty serious. As for the Allams I can’t see them wanting to fund the whole of the KCOMs cost should AP be successful with his pursuit of a club owned stadium. Do the Allams or rather Ehab have the appetite for it all if they are indeed selling City.
Maybe it would be a cheaper and more viable option long term to buy City?
I’m not sure the council will look forward to the prospect of possibly loosing a tenant of the stadium either.
It’s more than evident the stadium is certainly not used to its full potential almost as if the SMC has set out for the stadium to fail in an attempt to force the council into a deal.
It’s certainly a story that we won’t have heard the last of, I certainly don’t see it as just a stunt to try and get a better deal. If it were I’m sure he’d have had a photo taken holding an architects plan up of the stadium

We tendered out for Electrical contractors a couple of years ago to do the electrics for a stadium on the Costello site

Chris71 wrote:

I think while there will be a certain aspect of what AP has said will be to wake up people within the council I don’t think it it’s said without any substance.
He seemed quite honest about the prospect of the club having its own ground and pretty serious. As for the Allams I can’t see them wanting to fund the whole of the KCOMs cost should AP be successful with his pursuit of a club owned stadium. Do the Allams or rather Ehab have the appetite for it all if they are indeed selling City.
Maybe it would be a cheaper and more viable option long term to buy City?
I’m not sure the council will look forward to the prospect of possibly loosing a tenant of the stadium either.
It’s more than evident the stadium is certainly not used to its full potential almost as if the SMC has set out for the stadium to fail in an attempt to force the council into a deal.
It’s certainly a story that we won’t have heard the last of, I certainly don’t see it as just a stunt to try and get a better deal. If it were I’m sure he’d have had a photo taken holding an architects plan up of the stadium

Buying City may work in the short term as it gets rid of the ownership issues at the stadium and Pearson is popular amongst City fans...but the problem is Football finances have gone bonkers since he sold City. I doubt he'd have the finances to keep them any higher than League1 consistently, and after a while fans will want more and thats when things turn ugly at sports clubs.

Wilde 3 wrote:

We tendered out for Electrical contractors a couple of years ago to do the electrics for a stadium on the Costello site

That got quite a long way before the issues with raising the cash scuppered it that was before the private equity craze. There is a lot on here about the council but although they own the Stadium they handed all the control and management solely to Stadium Management Company in exchange for the council having no responsibility for the upkeep and maintenance which is all on the SMC. The stadium was built with capital funding, but the authority just doesn't have the money in their revenue estimates to do all the upkeep so with the exception of being the owners of the place the council has no input whatsoever and the SMC do pretty much as they like till their lease is up.

I think APs in quite a strong position.
He can investigate a new stadium funded by private equity money, knowing he can walk away from the KCom at the expiration date of the lease.

Surely the KCom needs year round use to make it viable?. Over to you Ehab.

Not really a reality is it though. Most people will see through it. Nice to have a pipe dream though.

Couldn’t even get a bank loan a few months ago.

Private equity? How much investment is needed? 10? 20? 25million? At 20million that’s 2million to be paid back a year over 10 years plus the interest/terms of the agreement. That’s not even including the extra costs involved such as maintenance.

There’s no chance the council have the spare coin available to help out in the current climate.

Hot air from Pearson. In reality he is pooping himself on the potential terms of the new lease but I’m sure you all know that already.

teddypicker wrote:

Not really a reality is it though. Most people will see through it. Nice to have a pipe dream though.

Couldn’t even get a bank loan a few months ago.

Private equity? How much investment is needed? 10? 20? 25million? At 20million that’s 2million to be paid back a year over 10 years plus the interest/terms of the agreement. That’s not even including the extra costs involved such as maintenance.

There’s no chance the council have the spare coin available to help out in the current climate.

Hot air from Pearson. In reality he is pooping himself on the potential terms of the new lease but I’m sure you all know that already.

Sadly I tend to agree. Building a Rugby League stadium in an off the beaten track City which has low property and land prices and already has a bigger stadium isn't exactly the investment opportunity of the century for an investor either.

Rugby League isn't stable at the moment either, nobody really in charge and still no new TV deal and its not outrageous to suggest there is a risk the sport may return to being a part time. Add Covid on top and it doesn't feel like a time for someone to gamble on investing millions in an RL ground.

I don't think it is such a pipe dream to be honest.
I work for a firm that partners with a lot of Private Equity consortiums and the payback for them. alongside capital repayment and actual asset value appreciation , is the long term use and commercial revenue potential of the developments. It would largely depend on where it is located as to whom they could attract though, an example of this is the Bridge View development at Ferriby Rd, Hessle, which has seen Porsche and other prestige brands commit because of that factor. The stadium would be probably constructed with prestige office space, health outlets, like private gyms, spas and similar facilities, which seem massively popular at present, so maybe with investment from those clever people who are blessed with long term foresight and vision, allied to very accurate and detailed market information, this could have legs; either way it is something to consider isn't it ?