File - Building Change Trust
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Transcript File - Building Change Trust
Giants Park Community Stadium & Sports
/ Educational Village
Potential for community shares issue?
Proposal; of Crusaders FC and Newington FC
Crusaders FC Background
• Established 1898, proud
working class institution
• Became senior club 1949,
replacing Belfast Celtic
• League Winners 4 times,
Irish Cup 3 times
• Current Manager, 7
trophies in 7 years,
• This Year: 3rd Irish Cup Final in
4 yrs, League Cup Winners, SF
Setanta Cup, UEFA qualification
• Owned, run by fans,
affiliated to Supporters
Direct
What’s the problem (1)
Meet rising Standards: 2007-08 League moves to
Licencing. Initial applicants ranked by points;
Crusaders in 15th place (12 team League)
Debt: Owed £470,000 – much to HMRC, Bank,
Brewery
No credit: At limits of borrowing with Bank (Bank a
“zombie” bank)
Needed an immediate £30k to meet licencing criteria
Needed around £100,000 to take advantage of (to
‘match’) available grant aid
What’s the problem (2)
Football is popular, but doesn’t pay: Except
Linfield, barely a financially sustainable club in N.
Ireland! Not an investable business
Island wide,“80% technically insolvent” , Drury 2008
Standards Rising: IFA, UEFA, (AIPL?).
Requires new model. MODEL NEEDS TO
- Generate (non football) income & be sustainable
- Embrace all communities, welcoming leisure venue
- Local authority involvement / “buy in”
- Community “buy in” - Sports development approach
Crues / Newington proposal is that model !
What’s been done?
Bond Scheme
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Bond scheme
Base rate + 2.5%
Units of £250, no limit
Payable within 3 years
Bondholders unsecured
46 Bondholders
Range £250 to £23,000
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- 28: amounts less than £1000
- 9 x £1000 or above
- 3 x £5000 or above
- 3 x £10,000 or above
• Ring Fenced to Ground
Development
Development
New 4g artificial surface –
opens stadium 7 days
New floodlights
New changing rooms
2 new 830 seat stands
(modular, moveable)
Renovated North Stand
New pitchside fencing
Means
Welcoming, open
Better community club
Better Youth Academy
New Womens section
Better income streams
Progress, but Still Problems
The Good
• Technically Solvent:
Debts still @ £470k, Asset
net book value of £1.4m
• Profitable for last 3 years
• Shifted debt from “hard”
creditors to “soft” creditors
• Grant £400k with
Newington FC for “Mes
Que un Club”
• Aim at Survival for 3
years, then “New
Stadium”
The Bad & Ugly
• Financially Precarious
• Not Solvent, based on
ability to meet liabilities as
they arise
• Cash Flow nightmare
• Still over-paying players,
based on basic trading
• Still “footballers first” in
creditor priority
• Cash culture prevails
• Still some dangerous
“lights out” creditors
• Still gambling on success
Giants Park
Community Stadium &
Sports/Educational Village
A sustainable, shared sports ‘Hub’ in
North Belfast
Proposal of Crusaders FC and Newington FC with Belfast City Council
North Belfast
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Most segregated part of N Ireland
22 of 42 NIO “Peace Walls”
Highest “Troubles” related deaths
Poor access to leisure facilities
High levels deprivation
4000 - 8000 Stadium (UEFA, DDA Eco compliant)
3500 seat Indoor “Pro-Basket” arena & public ice-rink
Sports Village: 100,000 sq ft rental space
Tertiary Education Block / “Hub”
Belfast Met. Football Academy
Signature Youthzone
Soccer Dome / MUGAs
Hotel & Retail
International Centre of Excellence (?)
GAA 3G pitch
Adventure Golf
PLUS - Global level media interest, 2000+ jobs
Main Features
Sports Educational Village
“A business park with a
pitch in the middle”
• 100,000 – 120,000 sq ft
let space
• Anchor Tenant: 3rd level
Educational)
• Sports Medical Unit
• Sports Retail Unit
• Sports Consultancy Unit
• College Coaching Unit
• Scope for Council play,
sport, leisure depts rental
SUSTAINABLE BUSINESS MODEL*
Permanent Tenant (s)
Stadium Company
Balanced Revenue Streams
Sports
Events
(10%)
Concerts/
Exhibitions
(5%)
Community
Involvement
and Events
(5%)
Business & Property –
Leasing & Rental
(80%)
* This model stems from a ‘Global Model of Best Practice’ from research by University of Ulster
Overtly
Cross
Community
ESSENCE OF
THIS PROPOSAL
Social
Employment
Enhancement
Economic
Sustainability
Key Club Benefits
Sports Development “Hub” :
• Great playing/training facilities
• Competitive advantage
• A welcoming stadium to be
proud of, DDA, UEFA
compliant, Eco-friendly
• Improve attendances.
• Wider usage for school,
community, events
• Create great media offices &
hospitality space.
• Commercial income - match
day facilities and let rental units
secures long term clubs’ future.
• Sports Apprenticeships, on site
Sports medicine
• Governed by “Stadia Co” separate from Clubs !!!!!!
Community Shares ?
• Developer to build
whole scheme
• £200m total
• Clubs can be
“sweetheart” tenants,
or
• Clubs can “buy equity”
• Crusaders can
redevelop Seaview to
clear debts
• Clubs can now
fundraise for equity
• Community Shares,
could lever in
significant North
Belfast “ownership”
• Issued through clubs
to maintain communal
balance, eg
-
X shares Crusaders
X shares, Newington
Y shares, independent
• Could lever access to
stadia grant funding as
part of equity
Next Steps
Expression of Interest
Development Brief
Currently, due diligence
Council decision by September
Funding, Financing, Planning, Tendering & Build!
Quick decision and momentum important.
THEN
Set up Stadia Co.
Community Shares issue