The Trust is pleased to publish a question and answer on the Lionel Road stadium project. This has been expanded and revised to the previous version printed in the latest Bees United newsletter.
Definitions :
BFCLR: Brentford FC (Lionel Road) Ltd
The Club: Brentford FC
1) Who now owns the Lionel Road land?
At the moment, the site is still owned by BRB (Residuary) Ltd, which last year signed a contract to sell it to Chancerygate, a property company. BFCLR agreed an option with Chancerygate allowing it to take over the contract between Chancerygate and BRB (Residuary) Ltd and complete the purchase of the site.
As the club does not have the financial resources to complete the purchase it is working with a development partner. Under this arrangement BFCLR has assigned the option to the developer who will complete the purchase of the site and own it subject to an option which BFCLR has to buy it in future.
2) Where is the money coming from to buy the land?
Our development partner is providing the money to fund the land purchase.
3) How is BFCLR protected from the development partner doing their own development or selling the site to someone else.
There are signed contracts that outline an agreement in principle for the two parties to work together on a development that will include a stadium alongside residential and commercial facilities. The intention is that part of the profits from the enabling residential and commercial development will fund the cost of the stadium.
The next step is to negotiate a detailed development agreement, which could take a year and will set out binding commitments, which would then enable a planning application to be prepared and submitted.
If it is not possible to reach a detailed agreement BFCLR then has an option to buy the site from the development partner, if we can find alternative funding to do so.
4) What is the position regarding planning permission
Planning permission for the stadium and associated commercial facilities is still required. The commercial arrangements for this will have to be negotiated in the detailed development agreement and an application will not be submitted until this has been signed.
5) Who is in charge of building it/project management?
The intention is that BFCLR and the developer will work as a team to agree a formal development agreement which will specify (subject to planning) the detailed stadium design and arrangements for construction and project management. The BFCLR board consists of Greg Dyke (Chairman) Ian Jones, Brian Burgess and Chris Gammon. Brian and Chris will work for BFCLR from January 1st and will continue to lead the project on behalf of BFCLR and the Club.
6) What happens if the developer pulls out?
If a deal cannot be agreed with the developer, BFCLR has an option to buy back the site from the developer. This would allow the Club to seek an alternative partner.
7) Why do we need a 20,000 stadium given our current crowds?
Because we are ambitious and want a stadium that will last for decades to come. A new stadium has the potential to attract new spectators and will generate new revenue streams which will improve our ability to invest in the playing squad. In addition, we want a stadium that has the capacity and facilities to attract a major rugby club to share Lionel Road.
8) When will it be ready?
The target we have set is for the Club to be playing there by the end of 2012. However this is an estimate and is subject to a whole range of commercial negotiations, planning delays, appeals and various other potential hurdles.
9) Will we have to leave Griffin Park before it's built and groundshare?
The plan is to vacate Griffin Park only when the new stadium is complete and ready to accommodate us.
10) Why has a stadium company been set up?
We wanted a discrete company with a separate board which was focused purely on the Lionel Rd project. The establishment of BFCLR also enables us to ring fence the potential risks and liabilities arising from the project and protect the Club.
11) Why has it taken five years to get to this stage?
This is the time it has taken for the contract to sell the land and for the negotiations on the option to come to fruition.
12) Does it makes any difference to the move or to the plans if we are no longer a league club.
The critical thing will be that the Club must have sufficient revenue to cover the operating and maintenance costs of the new stadium. On one hand the new sources of non-football revenue will help considerably but on the other hand a bigger stadium will cost more to run.
If we have a major rugby club as a partner this will also influence the revenue and the specification for the stadium, so there are many complex issues to consider and important decisions to be made over the coming year or more.
13) Is there a business plan for the new stadium
A business plan has been written. This will need to be updated in the future as negotiations with our development partner, potential rugby club partners and planning issues progress.
14) What facilities will be included that will enable BFC to increase off-the-pitch revenue?
The exact facilities will be dependent upon the outcome of future negotiations. However, potential non football related income areas identified include conferencing, banqueting and other events, car park revenue, revenue from property assets (eg the business centre), non-stadium advertising income, naming rights and any income from a rugby club partner.
15) Who will own the ground?
The intention is that the proceeds of selling Griffin Park will be re-invested in the new stadium and the Club or BFCLR as a subsidiary of the Club will own the ground. In practice the commercial structure will depend on a number of complex factors including commercial arrangements and tax considerations.
16) How do we ensure that BFC survives until Lionel Road is delivered?
That is the responsibility of the Club board and it’s major shareholders, including Bees United. The boards of both the Club and Bees United are actively considering the options and plans for survival.
17) What are the clubs debts expected to be when it moves into Lionel Rd?
This will depend on the plans that are adopted and the football and business performance that is achieved in implementing them.
18) How will fans be kept informed of progress regarding the stadium
We intend to keep fans updated on a quarterly basis and will of course advise of any major changes or decisions as soon as possible. Inevitably, many commercial negotiations will be confidential and this will restrict the amount of detail we can disclose and may prevent us from publishing information as soon as we would wish.