How Demetriou Screws St Kilda FC

[ace]

http://www.theage.com.au/victoria/the-b ... 22fp7.html

Etihad stadium has an unusual ownership structure.
It is temporarily owned by a collection of superannuation funds until 2025.
At that time ownership lapses to the AFL and the collection of superannuation funds get zilch, zero, nothing, in return.
That means that the super funds have to recover the value of the asset over the timespan of their ownership while making a hefty return on capital to satisfy the super funds beneficiaries.

The asset is valued in this newspaper article at $1 billion.
The super funds own the Etihad asset for around 25 years.
The super funds need to make $40 million per year just to recoup the value of the asset they lose in 2025.

AFL teams playing at Etihad must pay this $40 million themselves.
Any payment from the AFL is indirect.
Demetriou pretends he is subsidising Etihad clubs which end the year with a financial loss.
The truth is the Etihad clubs are subsidiising the AFL purchase of Etihad through greater ground rental charges.
There are only 40 to 50 games at Etihad in a year, so each game, Etihad has to recoup close to $1 million per game that would otherwise go to home club.
The super funds make money out of non football activities at Etihad but that produces no discount to the AFL clubs.
The super funds have to make the extra $40 million because they eventually lose the asset to the AFL not to non football activities.
If the ground were already owned by the Etihad clubs that extra money would be going to the clubs or to the AFL if owned by the AFL.

The Etihad clubs and only the Etihad clubs are being forced to buy Etihad stadium for the benefit of the AFL.
In 2025 the Etihad clubs will not own Etihad stadium it will be owned by each of the 18 clubs who comprise the AFL.
Most of those clubs especially the interstate clubs and Collingwood, Hawthorn, Richmond and Melbourne will have paid next to nothing.
The AFL could make the ground available for free to Etihad clubs from 2025.
Yeah dream on says Evil Eddie Maggotpie.


All of that is before Etihad makes any profit for the temporary owners, the super funds.
How much profit do they want.
My guess on an investment asset valued at $1 billion, around 100 million per year or $2 to $2.5 million a game.

[saint66au]

Wow...you worked out all that from one sentence in the artcle??

[saintspremiers]

Wow...you worked out all that from one sentence in the artcle??

And prior knowledge of the ownership structure.

Excellent piece Ace.

ace is not 100% correct. The AFL have to pay a dollar for Etihad in 2025.

[saintkid]

http://www.theage.com.au/victoria/the-b ... 22fp7.html

How much profit do they want.
My guess on an investment asset valued at $1 billion, around 100 million per year or $2 to $2.5 million a game.

Good post ace but this is the problem. Getting a 10% return on a commercial property these days is a rarity. On an asset valued at 1 billion you would be very very fortunate to get a 7% per annum return.

[joffaboy]

The asset is valued in this newspaper article at $1 billion.
The super funds own the Etihad asset for around 25 years.
The super funds need to make $40 million per year just to recoup the value of the asset they lose in 2025.

lol - you assume that the current owners paid the current estimated $1 billion.

It is only worth that much if it is sold by the current owners.

What did these funds purchase the stadium for?

Answer that before making a straw man argument out of a contingent estimate.

And saintspremiers, it is NOT 100% correct

your ignorance and stupidity continues to astound me.

[noreason41]

Do you know who paid exactly how much?
How are the profits shared?

You're basing an opinion on very little information...

[noreason41]

The asset is valued in this newspaper article at $1 billion.
The super funds own the Etihad asset for around 25 years.
The super funds need to make $40 million per year just to recoup the value of the asset they lose in 2025.

lol - you assume that the current owners paid the current estimated $1 billion.

It is only worth that much if it is sold by the current owners.

What did these funds purchase the stadium for?

Answer that before making a straw man argument out of a contingent estimate.

And saintspremiers, it is NOT 100% correct

your ignorance and stupidity continues to astound me.

My questions as well. All the OP has said is who currently owns it, what it's currently valued at (I can only assume it will be worth significantly more by 2025, no?), and what profit they'd need to make to equal the value of the asset.

Nothing about who paid for it, or the initial funding of the development for it.

[ausfatcat]

it's a recurring theme across a few grounds that need to achieve a income for it's owners, if those owners aint tthe club themselves that is compounded at etihad due to the limited time the owners have inwhich to make a profit and recoop the purchase price.


btw I seem to remember etihad being up for sale for 250 mill a few years ago when channel 7 sold it??????

[saintspremiers]

The asset is valued in this newspaper article at $1 billion.
The super funds own the Etihad asset for around 25 years.
The super funds need to make $40 million per year just to recoup the value of the asset they lose in 2025.

lol - you assume that the current owners paid the current estimated $1 billion.

It is only worth that much if it is sold by the current owners.

What did these funds purchase the stadium for?

Answer that before making a straw man argument out of a contingent estimate.

And saintspremiers, it is NOT 100% correct

your ignorance and stupidity continues to astound me.

Ok what happend then you farking Einstein.

[gringo]

The asset is valued in this newspaper article at $1 billion.
The super funds own the Etihad asset for around 25 years.
The super funds need to make $40 million per year just to recoup the value of the asset they lose in 2025.

lol - you assume that the current owners paid the current estimated $1 billion.

It is only worth that much if it is sold by the current owners.

What did these funds purchase the stadium for?

Answer that before making a straw man argument out of a contingent estimate.

And saintspremiers, it is NOT 100% correct

your ignorance and stupidity continues to astound me.

Wow that's an emotional response. I take it your job isn't one where diplomacy needs to be considered Joffa.It may not be 100% correct but it would be hard to say that we have won out of our tenancy arrangement there.

[ausfatcat]

current owners payed $330 mill for it

http://news.ninemsn.com.au/business/107 ... lstra-dome

[SaintPav]

Who says Etihad is worth $1 billion...LMFAO...

[ausfatcat]

Who says Etihad is worth $1 billion...LMFAO...

well if owning the management rights and income stream for 15 years without owning the actuall stadium is worth 330 mil..............

[bobmurray]

Someone is getting taken for a ride.....i don't know who but it's not Essendon...