Proposal; of Crusaders FC and Newington FC

Giants Park Community Stadium & Sports / Educational VillagePotential for community shares issue?

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

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

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 !

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

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

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

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

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

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

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

ESSENCE OFTHIS PROPOSALOvertly

CrossCommunity

SocialEmploymentEnhancement

EconomicSustainability

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 !!!!!!

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

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