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ENIC

Muttley said:
It would be interesting to see the costs of building that stadium in the different time periods. If we go back as far as 2012 we know that Levy was heavily engaged in getting the Olympic Stadium bid. There was then a window to May 2017 when we finally moved out of WHL and started the build. As you say there would have been no build in 2020 as we were all locked down. I'm thinking that if we were building right now those raw material costs that we've seen across the globe would have probably sucked up an incremental 25-50% cost to the club.

I have no clue whether we did everything right in the first half of this millennium and could have got going much earlier but we got there in the end. What we need to be careful of is what happened to Old Trafford and Stade de France and many other stadia where they get old and tired and don't have the continual investment.
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Interest rates are a lot higher now aswell.
 
thfcsteff said:
There is an argument for saying it actually timed out 'in the nick of...' because had we entered covid having not actually got too far on the build, it would've become one of the worst investments and potential disasters of all-time. And imagine trying to build something like that now. I've seen single stand renovations quoted at over half the cost of our entire stadium! It's quite something...
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In terms of having it built before, absolutely, but losing two years stadium revenue straight of the bat was a killer. Club was losing 1m a day because of wages and that lack of revenue, not that we were the only one, but having such a stadium our "potential" was hurt more than most. No doubt things are worse now, not sure anyone would be getting a 30 year bank mortgage like we did either
 
thfcsteff said:
There is an argument for saying it actually timed out 'in the nick of...' because had we entered covid having not actually got too far on the build, it would've become one of the worst investments and potential disasters of all-time. And imagine trying to build something like that now. I've seen single stand renovations quoted at over half the cost of our entire stadium! It's quite something...
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That's what I've always said.
To miss out on revenue so close to opening is nothing compared to being in the middle of the build and shutting down with no idea/timeline of when and how it can get going again. Combined with material supply shortages and a massive spike in the cost of those materials..

Also not forgetting the knock on effect of a delay to get completed would datewise put us in a whole different world of interest rates for the main tranche of after project refinancing.
Sneaking in on the last moments of historically low interest rates is something that has probably been saving us £30-40m a year.

Finally....Good luck to any club that has ambitions to do what we did....££££££££££££££££
 
MartyFunkhouser said:
In terms of having it built before, absolutely, but losing two years stadium revenue straight of the bat was a killer. Club was losing 1m a day because of wages and that lack of revenue, not that we were the only one, but having such a stadium our "potential" was hurt more than most. No doubt things are worse now, not sure anyone would be getting a 30 year bank mortgage like we did either
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It's a known future calculable cost though. You can have some certainty around it week to week. The only unknown is how long COVID was going to go on for.
Plus having the stadium complete and up and running we could stretch out our borrowing to see us over the hump. Initially borrowing off the government and then converting that into £250m more debt. It's interesting to note, that before adding the £250m, the stadium debt was probably just over £600m at this point, which given reports the stadium cost north of £1bn is a pretty good LTV if you look at it through a mortgage lense...giving us some wriggle room and helping us secure the other 250m.

For a black swan event it could have been a lot worse
 
ricky2tricky4city said:
It's a known future calculable cost though. You can have some certainty around it week to week. The only unknown is how long COVID was going to go on for.
Plus having the stadium complete and up and running we could stretch out our borrowing to see us over the hump. Initially borrowing off the government and then converting that into £250m more debt. It's interesting to note, that before adding the £250m, the stadium debt was probably just over £600m at this point, which given reports the stadium cost north of £1bn is a pretty good LTV if you look at it through a mortgage lense...giving us some wriggle room and helping us secure the other 250m.

For a black swan event it could have been a lot worse
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Of course, it could have been alot worse, but it was still an impact.

We had to take the loan because we were losing £1m a day during covid. One plus is my job during covid literally came about because of the PL need to get the game back up and running, will always be thankful for that, silver linings and all that
 
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