The stadium purchase price dependent on promotion ?

I think I'm right in saying the price that Brent/PAFC would pay for Home Park is legally agreed to be roughly 10 times the existing annual rent at the time of purcahse. Figures have been bandied around that might be in the region of £1.5million, with an annual rent of 150K one would imagine. Not a bad price, I'm sure most would agree.

Now, as far as I recall, the council rent automatically goes up depending on what league Argyle are in. So, here's the rub.. If Argyle hopefully sneaked up through the playoffs this season, would the council rent increase accordingly BEFORE the stadium comes up for purchase in October ? I ask because I can see a potential conflict of interests here. If Argyle go up, will the rent be increased to say 200K or even 250K automatically at the start of next season ? Such a rent increase would surely have the effect of increasing the purchase price by 500K to £1million. Or have I got that wrong ? I wonder if Jimmy has thought about such things ? Maybe not, as up to a couple of months ago, he hadn't even thought of buying the stadium at all.

No I don't think so.

The stadium price is 12x annual rent and increases substantially if we get promoted to the CCC. I think it stays the same going from League 2 to League 1.

Along similar hypothetical lines though...

Hypothetically speaking we can hypothetically deduce the direction the club is heading in and the (12 x rent) buy back hypothetically lies at the heart of it all. After all if it wasn't for that why would, hypothetically speaking, Brent turn down going halfies on the grandstand with the council? Had he done so, and I am hypothesising here not actually stating that this is the case, PCC would effectively have been bunging him a hypothetical £5m which woud have enhanced his hypothetical potential asset value very nicely.

However, if such a hypotheitcal deal also involved a hypothetical re-negotiation of the lease including a hypothetical rent increase to a hypothetical £400k per annum (easily affordable if the hypothetical £1m increase in hypothetical revenue it might hypothetically have been forecast to generate was accurate) the cost of any hypothetical buy back in the future would have increased by a hypothetical (12 x increase in rent) which might be a hypothetical (12 x £300k = £3.6m) increase in the hypothetical future purchase value to a buyer.

So if this journey in hypothetical fantasyland were true the hypothetical upshot of it would be that far from Brent being the man to build us a new hypothetical grandstand he is actually the hypothetical obstacle to getting it built.

All entirely hypothetical, of course.

I'm not suggesting for a moment that any of this is actually the case. There's no link on the net to any of it at all so it clearly cannot be based in fact in any way whatsoever. Just think of it as idle speculation along the lines of "pub talk after a few pints".

I much prefer "alleged".

Lord Biro wrote:

I think I'm right in saying the price that Brent/PAFC would pay for Home Park is legally agreed to be roughly 10 times the existing annual rent at the time of purcahse. Figures have been bandied around that might be in the region of £1.5million, with an annual rent of 150K one would imagine. Not a bad price, I'm sure most would agree.

Now, as far as I recall, the council  rent automatically goes up depending on what league Argyle are in. So, here's the rub.. If Argyle hopefully sneaked up through the playoffs this season, would the council rent increase accordingly BEFORE the stadium comes up for purchase in October ? I ask because I can see a potential conflict of interests here. If Argyle go up, will the rent be increased to say 200K or even 250K automatically at the start of next season ?  Such a rent increase would surely have the effect of increasing the purchase price by 500K to £1million. Or have I got that wrong ? I wonder if Jimmy has thought about such things ? Maybe not, as up to a couple of months ago, he hadn't even thought of buying the stadium at all.

A 30-year lease at an initial annual rent of £135,000 a year linked to the Consumer Price Index.

Should the club attain promotion to the Championship, the rent would increase by 150 per cent – and by 300 per cent if it reached the Premier League.

The tenant will be responsible for the upkeep of the stadium and every five years will have the chance to buy back the stadium for 12 times the annual rent.

Rickler wrote:

Lord Biro wrote:

I think I'm right in saying the price that Brent/PAFC would pay for Home Park is legally agreed to be roughly 10 times the existing annual rent at the time of purcahse. Figures have been bandied around that might be in the region of £1.5million, with an annual rent of 150K one would imagine. Not a bad price, I'm sure most would agree.

Now, as far as I recall, the council  rent automatically goes up depending on what league Argyle are in. So, here's the rub.. If Argyle hopefully sneaked up through the playoffs this season, would the council rent increase accordingly BEFORE the stadium comes up for purchase in October ? I ask because I can see a potential conflict of interests here. If Argyle go up, will the rent be increased to say 200K or even 250K automatically at the start of next season ?  Such a rent increase would surely have the effect of increasing the purchase price by 500K to £1million. Or have I got that wrong ? I wonder if Jimmy has thought about such things ? Maybe not, as up to a couple of months ago, he hadn't even thought of buying the stadium at all.

A 30-year lease at an initial annual rent of £135,000 a year linked to the Consumer Price Index.

Should the club attain promotion to the Championship, the rent would increase by 150 per cent – and by 300 per cent if it reached the Premier League.

The tenant will be responsible for the upkeep of the stadium and every five years will have the chance to buy back the stadium for 12 times the annual rent.

they arent doing that, thats for sure