FA look a laughing stock in the City
WHILE the figures being bandied around for the sale of Wembley are mind-boggling to the average fan, in the City this type of multi-million-pound transaction is commonplace. When you sell a big asset like Wembley you first call an investment bank. You get a property valuation and factor that into a business plan then put out the word to investors and see what bids come in. You can then accept the best offer. That’s how well-run businesses get value for money. What you do not do is just say ‘yes’ when some moustachetwirling billionaire offers you £950million — particularly when the sum appears to be below market value. Adjusted for price rises the real value of Wembley should be much closer to £1billion. development, and owes £113m to public bodies, but the annual revenue — from the NFL, music concerts — is now pouring in. In 10 years streets around the stadium have turned from a wasteland into a retail goldmine, with hotels, restaurants, shops and bars flanking Wembley Way. Once debts are cleared in six years the stadium will be a cash cow and Shahid Khan knows it. Even if Wembley’s current loans of £140m are on onerous terms, the FA could refinance on better terms but in selling out to the first bid, they look commercially inept. Their hamfisted attempts at negotiating would make them a laughing stock in the Square Mile. History shows that bad business deals have a habit of turning into a national scandal.