Big Big Stadium News - COME ON ARSENAL!!

Discussion in 'Arsenal' started by Its only Ray Parlour, Sep 25, 2003.

  1. Its only Ray Parlour

    Aug 3, 2003
    Arsenal find stadium cash

    Banks boost Gunners with £260m key to new home

    Matt Scott and Jill Treanor
    Friday September 26, 2003
    The Guardian

    Arsenal believe they have raised the £260m necessary to build their new stadium at Ashburton Grove.
    The club's merchant bank Rothschild has been working with a group of banks led by the Royal Bank of Scotland, Bank of Ireland, Banco Espirito Santo of Portugal and Germany's Hamburgische Landesbank to unlock the funds.

    Arsenal are understood to be preparing a statement for shareholders at next Thursday's AGM after the banking consortium, supported by a clutch of other banks, pledged to act as Arsenal's creditor for the loan.

    Arsenal are believed to be set for a £40m injection of capital as part of the £260m long-term debt, though this is likely to be used to settle a £39m loan from Barclays that must be repaid within 12 months.

    The breakthough on funding is good news for Arsenal's manager Arsène Wenger, who, because of uncertainty over the club's future income, was unable to strengthen his squad to any great effect during the summer transfer window.

    With the loan soon to guarantee the construction of the 60,000-seat stadium, he will be able to revisit the transfer market either in January or next summer.

    That should also convince high-profile players such as Patrick Vieira, Thierry Henry and Robert Pires, all of whom were the subjects of speculation linking them with other clubs in the summer, that Arsenal's ambitions on the field match those off it.

    "I think Robert Pires, Thierry Henry and Patrick Vieira committed to new contracts with the stadium in mind," said Wenger recently. "None of them have run out into a new stadium with this club before and they are all looking forward to it. They want to be part of that."

    Arsenal see the new stadium as necessary to generate funds to compete with the likes of Manchester United, Chelsea, Newcastle and Liverpool in attracting the world's most expensive players. At present they are restricted by their 38,500 capacity at Highbury, which cannot be expanded because part of the stadium are listed buildings and because the neighbouring residents object.

    The last possible stumbling block to Ashburton Grove is outstanding compulsory purchase orders on two properties on the site, which are currently under consideration by the deputy prime minister John Prescott and due to be decided by the end of next week.

    Once these are delivered Arsenal will have vacant possession of the land, and after a further fortnight's consultation with the banks, during which the terms of the loan will be finalised and contracts will be signed, construction work may begin immediately on the stadium.

    With a projected completion date of June 2006, however, Arsenal may delay the start of further works on the site until March or April in order to reduce overheads. Work has been suspended on the site since April.

    Arsenal's development plan includes the construction of 2,300 homes. At least £75m has been generated by deals with the Newlon Housing Trust, for affordable homes at Lough Road, and Wilson Connolly, for residential housing around the stadium.

    Arsenal have further underwritten the £410m project with a £15m debenture scheme and £55m from a Nike sponsorship deal. Twenty-two months after the consortium's funding is in place, a further £30m will be invested by Granada, which already holds a 5% stake in Arsenal, in return for a further 4.9% of the club's shares. The naming rights to the stadium, whereby the ground has a title sponsor, is also expected to bring in a minimum £25m over 10 years.

    Arsenal's final development project will be the conversion of Highbury's listed buildings, the East and West Stands, into luxury flats. That work will begin in autumn 2006.

    However, the news that Arsenal are set to get the go-ahead on the new Ashburton Grove stadium will come as a blow to Sport England's chief executive Rob Draper, who had hoped Arsenal might act as tenants in Wembley Stadium to help fund that project.

    How funds were raised

    Achieved £15m debenture scheme
    Achieved £50m from Nike sponsorship deal
    Achieved £75m from housing deals with Wilson Connolly and Newlon Housing Trust
    Pending £260m loan
    Pledged £30m from Granada, sale of stock
    Expected £25m from title sponsor
    Grand total: £455m
  2. Martin Daoust

    Martin Daoust New Member

    Feb 14, 2003
    Hartford, CT
    Oh, boy are the FA and Sky gonna be angry now....
  3. ZonaGunner

    ZonaGunner Member

    Aug 23, 2003
    Tempe, Arizona
    Makes one wonder with the timing of this announcement and the FA throwing the book at Arsenal while letting ManU off with virtually no consideration.
  4. OPArsenal

    OPArsenal New Member

    Dec 17, 2002
    Jacksonville, FL
    Arsenal FC
    Nat'l Team:
    United States
    All right! Come on you Gunners! Let's get that thing built. Zona, welcome to the boards. Check out if you haven't already.
  5. michaec

    michaec Member

    May 24, 2001
    Arsenal FC
    Nat'l Team:
    This news definitely brightened up my morning. I walk past the site on my way to the ground and I'll be on the lookout for developments now.
  6. jegerpenge

    jegerpenge New Member

    Jan 18, 2003
    Lake Charles, LA
    we realize you're a lucky f***ing bastard without without you reminding us ever 2 minutes...:)
  7. michaec

    michaec Member

    May 24, 2001
    Arsenal FC
    Nat'l Team:
    How's about this: I'll have a look tonight as I walk past the site on my way to the ground to see one of the biggest games of the season at Highbury - Arsenal vs Newcastle! :)
  8. TxTechGooner

    TxTechGooner we're having fun here, no?

    Feb 24, 2003
    luxury flats at the East and West stands!! i fink i wanna move in!
  9. CDNGooner

    CDNGooner New Member

    As long as they keep the pitch as well - then you can play some footy with the neighbours!

    Plan - get my MBA, get a job in the City, move to North London. London housing prices are crazy though aren't they? I haven't been to London since 1997 (I was there when Princess Di died - weird time) wow it's been a while. Also not too sure which areas are good, which areas are bad, etc.

    I remember in Fever Pitch where Colin Firth wanted to buy a house close to Highbury (it was across the street or something like that - hilarious).
  10. Brodo

    Brodo New Member

    Aug 7, 2003
    Deep in Spurs territ
    The average price for a flat around Highbury is about £230,000. Luxury flats cost even more.

    Enjoy! ;)
  11. Lanesra

    Lanesra BigSoccer Supporter

    Feb 13, 2003
    My uncle bought the house we lived in in Elwood st (where the Gunners pub is) in 1963, for something like £ 1,600 , when he died 5 years ago it was sold for £298,000. All the NIMBY's around the new stadium should take note of this when they're complaing about how the new stadium will affect their property's
  12. Jeff L

    Jeff L Member

    May 12, 2002
    Arsenal FC
    It looks as if things are ready to roll. The club announce that work should begin in the first quarter of 2004.
  13. Catfish

    Catfish Member

    Oct 1, 2002
    Arsenal FC
    Thank you, Lord!

    My prayers have been answered. We won't be crushed due to financial difficulties.

    The Grove is going to be great! If you build it, they will come!Just you wait, when it is built players will come, most definately..they will want to play for The Arsenal @ The Grove. They will get up from where ever they are get on a plane heading to London and they won't know why.

    I'm so psyched for Ashburton Grove.

    Go Gunners.
  14. TxTechGooner

    TxTechGooner we're having fun here, no?

    Feb 24, 2003
    ya catfish.. maybe you can cheer on chelski, and celtic and oht thats right.. MANYOO.. those are your boys... your posts fall on deaf ears IMHO~~

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