by 3points »
29 May 2015 14:07
I think what has happened at the Ricoh Arena is likely to be quite close to the Thais intentions at Reading. I have good knowledge of the Wasps deal at the Ricoh. Fundamentally, Wasps wanted to buy the operations of the stadium to help fund the rugby club (contrary to most press releases Wasps only have a long leasehold on the stadium, and did not buy the freehold which still sits with Coventry City Council). In addition to having all the operating revenue to help subsidise the running of the rugby club, there are also several tracts of development land in the vicinity of the Ricoh, which Wasps' owners will redevelop alongside the council. This makes it a win-win for both the council, who want to regenerate the area (they have a new railway station being built too for what is an out of town / remote stadium complex) and Wasps' owners who make a packet out of developing the neighbouring land. Plus the owner can help balance the books of the rugby club, rather than keep funding losses of £4m a year.
Perhaps the Thais want to develop the stadium further by building some retail and leisure experiences adjoined to the stadium, build an indoor arena and expand the conferencing facilities. In addition, build a new or expand the existing hotel. I'm thinking we could be seeing Nandos, Frankie & Bennys, Pizza Express, etc etc together with a few bars and perhaps a bowling / ice rink complex.
it all seems pretty similar to me to the Wasps situation in Coventry. Wasps, so far, have been delighted with their move and are well ahead of the business plans relating to both match day income plus all the other revenue being derived from the hotel, conferencing facility, indoor arena and casino.