Levy postpones Stadium announcement

Subject: Levy postpones Stadium announcement Tue May 06 2008, 23:27

Today, 11:50 AM

Source: Official Site

In the Club's 2007/08 interim financial statement we indicated that we would report on the outcome of our appraisals and our preferred option in respect of an increased capacity stadium by the end of June.

However, following the latest appraisal, it will now not be possible to make an announcement within that time frame.

Chairman, Daniel Levy, said, “The difficulties with seeking a solution to our need for increased capacity are significant, they include low residual land values within the Tottenham area which in turn makes enabling development less feasible, along with a limited number of suitable alternative sites within London, all of which require land assembly.

“I am determined that we shall work towards a successful outcome and a project of this nature and importance cannot be hurried.

“On a point of clarity, we have taken no decision on whether or not to expand White Hart Lane and we continue to review and keep our options open.

“I appreciate that supporters are keen for news on the future of the stadium and felt that it was important to provide an update.

“I shall, of course, keep you fully appraised of any developments in the coming months.”

This Davidmatzdorf geezer from SC usually makes a lot of sense....

davidmatzdorf - Today, 01:50 PM

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Reading between the lines, here are your stumbling blocks:

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"Low residual land values within the Tottenham area" means "we can't make enough profit with the residential development to cross-subsidise the stadium development, especially now that the residential market has taken a slight downturn and may get worse".

I still reckon that any good-quality residential development in London will sell, simply because of the structural shortage of housing here, but developers have stopped assuming that values will continue to rise during the development period (always a risky strategy) and are now assuming that they may fall. That is clobbering a lot of business plans, all over London, indeed, all over the Southeast.

"A limited number of suitable alternative sites within London, all of which require land assembly" is code for "we are having problems securing the land on the Wingate Estate [assuming that rumour has any truth in it] and on all other sites we might move to".

The two issues may be connected: it's possible that they are having problems with the land assembly because the reduced estimated profits from the residential development have caused the club to reduce the amount they are offering for the land. That's the right thing to do for any developer in a falling market, but it always aggravates the sellers, big-time.

He hasn't mentioned a third stumbling block that I might have expected to see: difficulty borrowing the capital as a result of the international lending crisis. It could be that, if their business plan simply doesn't work, they haven't used it yet to try to secure the finance.

Subject: Re: Levy postpones Stadium announcement Wed May 07 2008, 08:59

(gotta say, I like the look of that)

Liverpool Football Club's revised plans for its Stanley Park stadium have been approved by the city council.
The planning committee backed the revised scheme, which included changes to the original design, on Tuesday.
It is the third draft of the plans - councillors gave the originals the go-ahead four years ago.
Opponents to the scheme have objected, calling the 60,000-seater stadium a "monstrous" development that is too big for the area.
The latest plans include improved leisure and retail facilities.
The Reds' current home will be redeveloped as a car park, sports centre and hotel.
It is hoped the scheme will regenerate public land which stands between Anfield and Everton's ground, Goodison Park.
Owners' dispute
Plans have previously been delayed because the club changed hands and the design was revised.
But with the two owners Tom Hicks and George Gillett in dispute with each other, building work could still be delayed.
The American duo took control of Liverpool in a deal worth £218.9m in February 2007.
But the relationship between the two men broke down some time ago, with the pair no longer on speaking terms.
Their falling-out has led to a war of words.
In a television interview, Hicks outlined his own plans for the future of the club as well as again calling for the resignation of chief executive Rick Parry.
But George Gillett has said he will not sell his share in the club to his rival.

» Levy's EGM Address
» Spurs are on the way to HK Stadium
» Open letter from Levy
» Jol: Levy won't get rid of me that easily
» Levy the rip off merchant