Statement by Trust Board
posted by Alan Palmer on Sunday 21st of January 2007 12:00:00 AM
The Crystal Palace Supporters’ Trust notes with interest the story in the latest issue of the Football Paper, reporting Simon Jordan’s intention to raise £15M of finance to support the acquisition of Selhurst Park.
When Simon Jordan’s purchase of the Selhurst Park freehold was announced on the 10th October 2006, we, together with all Palace supporters, welcomed the news. The Football Paper’s report raises some issues that now give the Trust cause for concern.
The document referred to in the report indicates that a 25 year lease of Selhurst Park will be put in place, requiring the football club to pay a fixed level of rent for the first three years with annual increases thereafter. These terms appear less favourable than the rent applicable under the club’s former lease with Ron Noades’ company, Altonwood. Our concern is that the level of rent proposed will place an increasing burden upon the club, especially if promotion to the Premiership is not achieved in the short term. Additionally, the club’s policy of selling long-term season tickets at today’s prices, although financially advantageous to supporters, could result in a shortfall of income in coming seasons coinciding with the club’s rent increases.
The reported terms of the financing proposals show that the £15M of borrowing requires repayment in 7-10 years. This will be done either by further refinancing or through the sale of Selhurst Park. Although we accept that the former is the more likely and preferred option, the idea of Selhurst Park being sold to repay a loan will cause concern to many supporters, particularly as we are unaware of any firm proposals to relocate the football club.
We share Simon Jordan’s desire for Crystal Palace to achieve promotion to the Premiership and establish itself in the top flight. If that aim is achieved then the resulting increase in club revenue will remove many of the concerns raised by this report. However, promotion cannot be guaranteed and in the event that Crystal Palace remains a Championship club then the financial pressures on the club are likely to grow.
We will be writing to Simon Jordan to raise our concerns. We also hope to learn more of his future plans for Selhurst Park.
-Statement ends-
Back to the News.
