We are going to get a new rectangular stadium - allegedly.

[GIGS20]

I'm curious though - after only ten years, does anyone think the government be up for a complete rebuild or replacement rectangular stadium?

Seriously? No I don't, but if we have a sold out, Members only stadium at 27,000 it might convince a Len Buckridge that building a 40,000 is a worthwhile business venture!

[AndyS]

No-one makes money from a stadium (well, other than those magically gifted them anyway). If he was only prepared to build at cost, he is hardly likely to build for free.

For anyone ever thinking along the private investment line, it is pretty simple - they need ~15% (minimum) internal rate of return on the investment. So for (say) $250M, the ground would need somehow to accrue $40M a year profit to the investor, either directly or indirectly. For reference, MES currently generates about $0.5M.

[Scotty]

For anyone ever thinking along the private investment line, it is pretty simple - they need ~15% (minimum) internal rate of return on the investment. So for (say) $250M, the ground would need somehow to accrue $40M a year profit to the investor, either directly or indirectly. For reference, MES currently generates about $0.5M.

Wouldn't the $40M be spread over the life of the asset? Unless the stadium is going to cost $250M per year to run. Now THAT would be a kick arse stadium!!

Over 20 years (say) you'd be looking at more like $2M profit per year. Still a lot but not out of the realms of the impossible...

[AndyS]

Nope, each year. Think of it this way, they want to see a return as though they had put the capital in the bank at an interest rate of 15%.

Otherwise, if you've got a spare $100k on you, lend it to me and I'll give you back $115k in twenty years time...

[Scotty]

Nope, each year. Think of it this way, they want to see a return as though they had put the capital in the bank at an interest rate of 15%.

Fair enough!

I'm not going to just give you $100,000, but if you had a bridge to sell me I might be persuaded...

[AndyS]

Lovely bridge, but a bit of a fixer upper - needs painting all the damn time and it is located in 'Tahland, which doesn't do property prices much good. Still, handy for them to jump off when they lose to the Force - saw a bit of traffic this year. Fingers crossed for next year, 'cos the embarrassment factor would be even higher now.

[normie]

Lovely bridge, but a bit of a fixer upper - needs painting all the damn time and it is located in 'Tahland, which doesn't do property prices much good. Still, handy for them to jump off when they lose to the Force - saw a bit of traffic this year. Fingers crossed for next year, 'cos the embarrassment factor would be even higher now.

hmmm, sounds like the bridge I almost bought off this nice Nigerian chap a few years ago.