The Arsenal AGM – the first in the Emirates Stadium was well attended – between 650-700.
Out of the Woolwich Suite window, the old Highbury sat parallel, looking sadly worse for wear, but importantly, like some still attached umbilical cord, will pay off some of the debt.
And as if to guarantee that unique Arsenal tradition will be maintained and protected (also see Myles piece on Wenger’s speech) Peter Hill-Wood re-iterated that Arsenal won’t be sold – haven’t reached out for a bidder, nor have they been approached, and they would repel any bidder.
Keith Edelman outlined the complex restructuring arranagements for the new stadium – both organisationally and financially.
He said the original £260m from six banks in 2004 – carried both construction risk and ticket sales risk – and following stadium completion and the sale of 150 boxes on three year terms, 7000 Club seats; 32,000 season tickets – and a waiting list for all those, a new loan could be negotiated.
This is a fixed rate bond of £210m at 5.1% (five times oversubscribed) and a floating rate bond of £50m (based on LIBOR rate of 5.75 + a formula of 0.22% over a three week period). This floating rate bond will be dispensed when the Highbury Square Development is sold in 2009/2010.
The upshot of all this is a 2% saving of interest, and around £10m/year.
Edelman added that of the 704 Highbury Square units (55 for shared equity housing) he said that 86% of all units released for sale had been sold.
In terms of questions from the floor of a financial nature, Arsenal Holdings are giving one spare Arsenal share to the Arsenal Supporters Trust.
Keith Edelman fielded a question over the average 22,000 de-minimis crowd level in relation to the bond requirements. He said the figure was an illusory number, but more like 32,000.
Peter Hill-Wood said that Arsenal don’t disclose transfer fees because of non-disclosure agreements in the contracts. And he alluded to the fact that it was an Arsenal tradition.