The Club spent around 90M assembling land for the stadium development. That land included not just the stadium footprint but also Sainsbury’s / Lillywhite House, the stadium southern development not started and a number of properties in the High Road West area.
We know that the transfer budget was constrained during the property purchases as this land acquisition was mostly completed without increasing debt significantly by using club finances.
Prior to raising the finance for the stadium build the club partly cleared down the limited debt it did hold by selling a number of properties to an ENIC owned Company domiciled in the Bahamas. The price paid was “fair value”. For the properties in the High Road West area this was valued without planning gain.
Following the property sales planning consent has been obtained for the High Road West area properties meaning their value will have considerably increased. ENIC have also sold on part of the ownership to a development partner. None of this increase in value or profit from the developments will go to the club.
Rather than transferring the properties for fair value at the time ENIC could have injected equity into the club to clear down debt instead but chose not to. If they had then the club would now benefit from the increased values post planning consent and any sales to development partners.
We know that the transfer budget was constrained during the property purchases as this land acquisition was mostly completed without increasing debt significantly by using club finances.
Prior to raising the finance for the stadium build the club partly cleared down the limited debt it did hold by selling a number of properties to an ENIC owned Company domiciled in the Bahamas. The price paid was “fair value”. For the properties in the High Road West area this was valued without planning gain.
Following the property sales planning consent has been obtained for the High Road West area properties meaning their value will have considerably increased. ENIC have also sold on part of the ownership to a development partner. None of this increase in value or profit from the developments will go to the club.
Rather than transferring the properties for fair value at the time ENIC could have injected equity into the club to clear down debt instead but chose not to. If they had then the club would now benefit from the increased values post planning consent and any sales to development partners.
