Quote: FearTheVee "Very much looking forward to seeing the turnover for te first year in the ground when the accounts eventually come out, I bet it will be preposterous in comparison with KR.'" They should be, but just a word of caution and it was something that Bondi_Warrior alluded to a few months ago. This is taken from the Cas site. "RW spoke with some of the Salford board of Directors on Saturday and they alluded to their cost base in their new stadium, and the operating costs for this being very significantly higher than that of an older style ground such as The Willows or The Coliseum. For Castleford to ‘Break Even’ at the new ground under projected costs, we will need an average attendance of 10,000 per game." viewtopic.php?f=16&t=518729

Quote: FearTheVee "Very much looking forward to seeing the turnover for te first year in the ground when the accounts eventually come out, I bet it will be preposterous in comparison with KR.'" They should be, but just a word of caution and it was something that Bondi_Warrior alluded to a few months ago. This is taken from the Cas site. "RW spoke with some of the Salford board of Directors on Saturday and they alluded to their cost base in their new stadium, and the operating costs for this being very significantly higher than that of an older style ground such as The Willows or The Coliseum. For Castleford to ‘Break Even’ at the new ground under projected costs, we will need an average attendance of 10,000 per game." viewtopic.php?f=16&t=518729

Costs and revenues are two completely different things. The Cas chairman was referring to costs.

Is this because they are playing in a "Community Stadium"? What is the deal with the ownership of said ground? Do Salford pay a rent? Do they receive monies from food sales or conferencing facilities?

Saints shouldn't have that problem, but there is the issue of paying back any money lenders, althoug if we fob them off, I mean remunerate them with shares, as was alluded to, that should help solve that problem?

Eh? The cost of something is irrelevant if you don't consider the revenues associated with that cost.

And vice-versa
It's no good bringing in £10K if it costs you £11K

So to summarise, what exactly is your point? Why do you think the Cas chairman quoted a breakeven attendance - do you not think he was talking about potential revenues there?

I said our revenues would be massively up, you said the costs would be up too. Well, congrats on your zillionth prize for stating the obvious.

It doesn't seem to add up to me. Why would Salford's costs be particularly high in comparison to the Willows? All they will be paying is rent presumably, the landlords (Council?) will then have to take care of maintenance costs.

I presume the council will also run the food and drink outlets at the ground, taking both the costs and the lions share of the revenue. So in effect, the rent, which if council run won't be full commercial value, will replace a lot of the costs they used to have.

I doubt our new ground will make us any money at all initially, certainly not in the first few years. But after five years, with the cladding nightmare a thing of the past, 12,000 season ticket holders and with everything working like clockwork it will be very beneficial in the long run. Items such as conferences, parties and weddings will open up lucrative revenue streams that simply didn't exist previously and we should be making around £1.5m more in ticket revenue a season.

So why would you ignore the former in your analysis of the effects of the latter on a business?

I think Sir McManus touched on the subject last week, saying that the initial set up costs for the first trading year would be quite high. However he was quite optimistic that with the revenue streams going great that they might break even. Burgers and pints might tip us into profit!
Next year if we keep the season ticket sales might put us into a very profitable situation.