Proposal; of Crusaders FC and Newington FC
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Proposal; of Crusaders FC and Newington FC
Giants Park Community Stadium & Sports / Educational VillagePotential for community shares issue?
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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
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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
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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 approachCrues / Newington proposal is that model !
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What’s been done?Bond Scheme
• Bond scheme• Base rate + 2.5%• Units of £250, no limit• Payable within 3 years• Bondholders unsecured• 46 Bondholders• Range £250 to £23,000• - 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
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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
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Giants ParkCommunity Stadium &
Sports/Educational Village
A sustainable, shared sports ‘Hub’ in North Belfast
Proposal of Crusaders FC and Newington FC with Belfast City Council
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North Belfast• Most segregated part of N Ireland• 22 of 42 NIO “Peace Walls”• Highest “Troubles” related deaths• Poor access to leisure facilities• High levels deprivation
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Main Features
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
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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
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SUSTAINABLE BUSINESS MODEL*
Permanent Tenant (s)
Stadium Company
Balanced Revenue Streams
SportsEvents
(10%)
Concerts/Exhibitions
(5%)
CommunityInvolvementand Events (5%)
Business & Property –Leasing & Rental
(80%)
* This model stems from a ‘Global Model of Best Practice’ from research by University of Ulster
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ESSENCE OFTHIS PROPOSALOvertly
CrossCommunity
SocialEmploymentEnhancement
EconomicSustainability
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Key Club BenefitsSports 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 !!!!!!
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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
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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