Having been away, i have only just had an opportunity watch the Fans Forum. Firstly, i think it is really important to thank OxVox for their work in both organising and delivering a good event. They remain a voice that supporters should continue to support with vigour, during these relatively uncertain times.
My immediate thoughts were that the forum was pretty powder-puff in its actual content from the SLT of OUFC. We didn't get many answers to the pertinent questions.
We still do not know who is funding the stadium project. I would be amazed if CDC were willing to grant permission, without a warts and all breakdown of how the stadium is being financed. Furthermore and while unlikely due to the vast wealth of the Shareholders, it would be incredibly naïve to have Minchery Farm #2, that is laid dormant for a prolonged period due to financial deficiencies.
It is 'hoped' that planning will be granted in the summer. If that is the case, the club have roughly 4-5 months to come up with £130-£150 million pounds of funding. It sounds and feels like an eye-watering amount of money for a club of our size.
Personally, i thought the club skirted around OUFC's re-payment plan that is clearly going to be required on the stadium build. At some point in the very near future, and prior to an agreement being reached, i do hope that there is transparency around what the re-payment terms look like to OUFC, be it via OxVox or directly into the public domain. What % of our annual turnover will be expected to be re-paid? Will OUFC benefit from the stadium, hotel, gym and 'plaza' revenues 365 days a year (not just have 'access' to the stadium, as per the Kassam agreement, currently?)
If we benefit entirely from the commercial opportunities at the stadium, how are the funders going to recoup their substantial losses?
If OUFC do not have control over these income streams then how are we going to finance the build repayments AND be competitive on the pitch?
I noted that Restricted Covenants are in place that mean the stadium must remain for use by a football club for the term of the lease. That is great but the reply lacked detail. What protections are in place, should that football club (OUFC) become financially unviable/insolvent due to the ownership pulling their funding out? (See Dai Young at Reading for example) Will there then be the capability to apply for a change of use for The Triangle?
Colin did a great job of doubling down on the accounts aspect. It was interesting that Williams got particularly defensive. I would wager that this is due to the 'soft debt' continuing to rise at an alarming rate. Ultimately, debt is debt and the club need to explain how that is to be managed and reduced in the medium term. OUFC are not an attractive proposition to new prospective owners if we have north of £40 million of debt to repay to Shareholders in 5 years time - should they wish to recover some of their losses. I noted that they did not confirm that all of the money being ploughed in by the Shareholders will be converted to equity.
While this stadium project remains exciting, i absolutely think it is the time for all of us to be extra vigilant around the intricate details of 'the deal'. OUFC must be safeguarded in perpetuity against any foul play later on and while the noises and 'fluff' from Williams might placate some, there remain many pertinent questions that we do not have answers too.
If only we had Stratfield Brake...i dare say a number of the financing issues would have taken care of themselves, owing to the increased commercial opportunities that would have provided - bloody NIMBY's!