silverfox
Well-Known Member
Interesting financial stuff happening and more land bought up close by.
From the OS...........
Sheffield United has raised a £10m loan to help cover some of the costs of relegation from the Premier League.
The football, leisure and property company announced today (September 6) that it has raised the money through an unsecured loan from SDG Caledonia Holdings Limited ("SDG Caledonia"), one of its major shareholders.
Relegation has reduced the club's income and has meant the repayment of substantial amounts of bank borrowings.
The loan will effectively replace the repaid bank borrowings allowing the club to maintain budgeted levels of expenditure on and off the field, as well as supporting certain capital projects. It also provides United with additional working capital for general expenditure including a number of specific projects.
Last month Sheffield United issued legal proceedings against West Ham United in connection with the registration of Carlos Tevez.
Sheffield United Chief Executive Jason Rockett said: "This investment is part of our long term business strategy which includes reducing bank debt. It is a strategic move in the wake of the inevitable reduction in income associated with relegation from the Premier League.
"This loan enables us to continue our robust business strategy - focused on staying competitive on-the-field and on growth off-the-field by maximising our business activities and opportunities," added Jason.
During the summer the Blades invested strongly in its first team with significant signings including Premier League stars James Beattie, Gary Naysmith, Lee Hendrie and League One top scorer Billy Sharp.
Meanwhile, United are driving forward with plans for a number of their business enterprises.
Work on a 158-bedroom hotel, to be operated by Millennium & Copthorne, is well underway at the club's Bramall Lane stadium. Due to be completed in late 2008 it will provide Sheffield with much needed high quality hotel accommodation, while enhancing Bramall Lane's reputation as an outstanding conference venue.
Elsewhere, United's £50m property joint venture 'United Scarborough Estates' has brought significant returns from investment in low risk properties and has traded an investment portfolio of approximately £130m of commercial, retail and industrial properties. The Club has also recently acquired property close to the stadium for future development and is also looking to develop a multi-purpose leisure and sports facility in Sheffield.
The Blades Enterprise Centre at Bramall Lane, the first serviced office building at a football club, maintains high occupancy levels and, with it, good returns for the group. United is also in talks to secure third party contracts to manage other business centres, utilising the expertise it has gained in the running of its own centre.
The loan is repayable by 31st August 2008 and includes an obligation for SDG Caledonia to underwrite up to the value of £10 million of any equity fundraising that the company makes during the period of the loan.
From the OS...........
Sheffield United has raised a £10m loan to help cover some of the costs of relegation from the Premier League.
The football, leisure and property company announced today (September 6) that it has raised the money through an unsecured loan from SDG Caledonia Holdings Limited ("SDG Caledonia"), one of its major shareholders.
Relegation has reduced the club's income and has meant the repayment of substantial amounts of bank borrowings.
The loan will effectively replace the repaid bank borrowings allowing the club to maintain budgeted levels of expenditure on and off the field, as well as supporting certain capital projects. It also provides United with additional working capital for general expenditure including a number of specific projects.
Last month Sheffield United issued legal proceedings against West Ham United in connection with the registration of Carlos Tevez.
Sheffield United Chief Executive Jason Rockett said: "This investment is part of our long term business strategy which includes reducing bank debt. It is a strategic move in the wake of the inevitable reduction in income associated with relegation from the Premier League.
"This loan enables us to continue our robust business strategy - focused on staying competitive on-the-field and on growth off-the-field by maximising our business activities and opportunities," added Jason.
During the summer the Blades invested strongly in its first team with significant signings including Premier League stars James Beattie, Gary Naysmith, Lee Hendrie and League One top scorer Billy Sharp.
Meanwhile, United are driving forward with plans for a number of their business enterprises.
Work on a 158-bedroom hotel, to be operated by Millennium & Copthorne, is well underway at the club's Bramall Lane stadium. Due to be completed in late 2008 it will provide Sheffield with much needed high quality hotel accommodation, while enhancing Bramall Lane's reputation as an outstanding conference venue.
Elsewhere, United's £50m property joint venture 'United Scarborough Estates' has brought significant returns from investment in low risk properties and has traded an investment portfolio of approximately £130m of commercial, retail and industrial properties. The Club has also recently acquired property close to the stadium for future development and is also looking to develop a multi-purpose leisure and sports facility in Sheffield.
The Blades Enterprise Centre at Bramall Lane, the first serviced office building at a football club, maintains high occupancy levels and, with it, good returns for the group. United is also in talks to secure third party contracts to manage other business centres, utilising the expertise it has gained in the running of its own centre.
The loan is repayable by 31st August 2008 and includes an obligation for SDG Caledonia to underwrite up to the value of £10 million of any equity fundraising that the company makes during the period of the loan.
