Who will own Lansdowne??

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02/09/2004, 12:43 PM
republic

Who will own Lansdowne??

I'm surprised that this issue hasn't been mentioned yet....

At last some movement on the re-development of Lansdowne Road! As you may be aware a legally binding agreement was signed yesterday between the Government, the FAI and the IRFU.

The Government have pledged to commit 191 million euro to the project. Interestingly the IRFU have pledged 68 million euro and the FAI have 'only' pledged 33 million euro.

Why the discrepancy between the IRFU and FAI financial commitments?

What do the FAI get for their 33 million euro commitment? (Are they paying 33 million euro to remain as tenants??)

Who actually *owns* the stadium when it is built?

Minister John O'Donoghue was actually asked the last quesion yesterday and completely failed to answer it. I am not sure whether he couldn't or wouldn't answer it. Both would not be too surprising from the bould John....
02/09/2004, 12:59 PM
Pat O' Banton

There was an article in the Tribune about three weeks ago regarding Lansdowne which seemed to indicate that the IRFU would own it and i presume that the FAI (sorry FAIreland I believe it is now) would continue to rent it off them. This wasn't a bad thing as the article was about the roof of the West(?) Stand being filled with asbestos and the ground being out of use between 2006 and 2010 rather then 2006-2008 as was orginally envisaged and the IRFU losing out massively projected sales over that two year period. Don't know if this deal will sort them out?
02/09/2004, 2:00 PM
pete

I don't think the anyone involved has been upfront on who will own the stadium. It would appear though that maybe the 3 parties involved get shares in the new venue in line with the money they investing? So if lets ay the FAI got 15% then would mean they 15% of profit from every event staged there & probably be some rent charged by IRFU to the stadium company.

It matters little if FAI don't own the ground as such cos they really have no choice & will increase their revenue without any debt.
02/09/2004, 2:53 PM
republic

Quote:

Originally Posted by Pat O' Banton

There was an article in the Tribune about three weeks ago regarding Lansdowne which seemed to indicate that the IRFU would own it and i presume that the FAI (sorry FAIreland I believe it is now) would continue to rent it off them. This wasn't a bad thing as the article was about the roof of the West(?) Stand being filled with asbestos and the ground being out of use between 2006 and 2010 rather then 2006-2008 as was orginally envisaged and the IRFU losing out massively projected sales over that two year period. Don't know if this deal will sort them out?

To pay 33 million euro to maintain the status quo and remain as tenants at Lansdowne Road would be incredibly bad business by the FAI. Much as nothing surprises me about the FAI, I simply cannot believe they would be that stupid.

Conversely should this be true (and I very much doubt it), it would be a fabulous coup by the IRFU to have a magnificent new stadium for the relatively paltry sum of 68 million euro and have guaranteed future rent from the FAI.

The fact that there is asbestos in the West Stand roof is neither here nor there regarding this issue.
02/09/2004, 2:57 PM
republic

Quote:

Originally Posted by pete

I don't think the anyone involved has been upfront on who will own the stadium. It would appear though that maybe the 3 parties involved get shares in the new venue in line with the money they investing? So if lets ay the FAI got 15% then would mean they 15% of profit from every event staged there & probably be some rent charged by IRFU to the stadium company.

It matters little if FAI don't own the ground as such cos they really have no choice & will increase their revenue without any debt.

I have just read a report in today's Irish Times which indicates that the FAI and IRFU have entered a joint venture with both organisations having a 50% equal share.

This does not explain why the IRFU would contribute twice as much as the FAI *and* their valuable real estate.

It would seem that the full story has yet to be told....
02/09/2004, 3:17 PM
pete

Quote:

Originally Posted by republic

To pay 33 million euro to maintain the status quo and remain as tenants at Lansdowne Road would be incredibly bad business by the FAI. Much as nothing surprises me about the FAI, I simply cannot believe they would be that stupid.

Fact - FAI need a new stadium as otherwise down to 22,000 at Lansdowne.
Fact - FAI can fund the 33m with premium ticket & corporate box sales which they have little or no revenuie from now.

The 33m basically fund itself plus FAI will get more revenue from 50k seats than 33k seats at present.
02/09/2004, 3:43 PM
Schumi

Quote:

Originally Posted by republic

This does not explain why the IRFU would contribute twice as much as the FAI *and* their valuable real estate.

Is the real estate not included in the IRFU figure?
02/09/2004, 4:16 PM
petef

Think the question of lost revenue for the IRFU is the main aspect here with regards to the possible percentage imbalance.
02/09/2004, 4:35 PM
republic

Quote:

Originally Posted by petef

Think the question of lost revenue for the IRFU is the main aspect here with regards to the possible percentage imbalance.

One would have thought that if both organisations had entered a joint venture with a 50% equal share then both would contribute the same amount. However, with the IRFU, of course, also providing the site the FAI should surely pay an additional premium if it is a true joint venture of equal partners. That is assuming that both are equal partners. Somehow I think there is a lot which has yet to be disclosed.
02/09/2004, 4:38 PM
republic

Quote:

Originally Posted by Schumi

Is the real estate not included in the IRFU figure?

The fact that the IRFU are providing the site should mean that they would pay less *not* more than the FAI.

Something is being hidden from us....