Registered On: October 17, 2015
Putting the positive cap on momentarily, I’d assume it makes capital lending more accessible and favourable if intend on redeveloping the ground and the surrounding area? Also will the 300k a year we paid in interest now be put towards the playing budget?
Two questions about that: how can the club borrow money if it doesn’t have its main asset as a security? And will the club be charged rent instead of interest?
1) If I remember correctly it was something along the lines of Coolsilk having access to more favourable rates of borrowing money than the club would. The club wouldn’t need to borrow anything. Obviously that then leads to the question of what benefits does the club gain from having its land being developed on.
2) the obvious answer is Yes. What the rent could be is guesswork. That also leads to the question of what happens when Coolsilk eventually sells up…