- Sep 15, 2007
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Couple of new bits on financing coming from the THST/THFC minutes :
- Naming Rights was something that would be arrived at mid project similar to with Emirates - existing deals shows it really only becomes a sensible conversation for sponsoring organisations once the construction has started
- Bank financing was a known quantity, however, with Rothschild acting as advisors and producing detailed modelling for them at present around servicing debt and cash ratios across each quarter
The new bit is that we should not expect anything to be announced formally on the naming rights deal until we are well into construction )'mid project') - and I guess its to do with the naming rights partner having more certainty as to when the stadium will be finished and used, which is when the naming rights sponsor will start to gain his marketing return (ie when the stadium is known as XYZ stadium) and when he starts paying. But I'm sure that there will already be a number of discussions held with potential partners which can now be progressed as the timeline for the stadium to be completed becomes more firm.
However discussions on the banking finance is well under way for the money to build the stadium - the naming rights money deal will form a substantial part of the club's payments back to banks to pay off the loans, and the credit rating of the naming rights sponsor may even affect the rate of interest paid to the banks
- Naming Rights was something that would be arrived at mid project similar to with Emirates - existing deals shows it really only becomes a sensible conversation for sponsoring organisations once the construction has started
- Bank financing was a known quantity, however, with Rothschild acting as advisors and producing detailed modelling for them at present around servicing debt and cash ratios across each quarter
The new bit is that we should not expect anything to be announced formally on the naming rights deal until we are well into construction )'mid project') - and I guess its to do with the naming rights partner having more certainty as to when the stadium will be finished and used, which is when the naming rights sponsor will start to gain his marketing return (ie when the stadium is known as XYZ stadium) and when he starts paying. But I'm sure that there will already be a number of discussions held with potential partners which can now be progressed as the timeline for the stadium to be completed becomes more firm.
However discussions on the banking finance is well under way for the money to build the stadium - the naming rights money deal will form a substantial part of the club's payments back to banks to pay off the loans, and the credit rating of the naming rights sponsor may even affect the rate of interest paid to the banks