Tim Davies pens a message to fans following Tuesday's announcement regarding the proposed joint ownership of the Walkers Stadium with the Leicester Tigers.
On Tuesday, we announced that we had agreed, in principle, to form a joint venture company with the Leicester Tigers to take joint ownership of the Walkers Stadium. We are now entering a period of consultation to take fans views fully on board. I have received many e-mails for and against the proposed venture and we have met with representatives from the Supporters Club and the Foxes Trust. I have also personally spoken to a number of you. My door is always open to hear and act on your concerns. We will also be hosting an open evening on Thursday 2 December. All I can ask of you is that all views are discussed in an open and sensible way and considered logically. Unfortunately, due to its sensitive nature, we could not enter into any consultation prior to Tuesday before we understood what we may potentially be signing up to.
Let me stress the following points:
1) We need to fully consult with fans.
2) No deal has been finalised.
3) The deal would, if it happens, significantly enhance our financial stability and our ability to compete as a football club. We will make a significant saving in our capital and interest repayments before taking into account any savings such as from sharing the stadiums rates. We will also over a period of time have a sizeable cash injection into the club.
4) We, and the Tigers, will invest substantially in pitch technology to ensure that our pitch surface is maintained to a high standard for football matches.
5) Our identity as Leicester City Football Club will remain distinct. Our heritage is vital to us.
6) Most of the practicalities of how the venue will operate if the venture takes place have not been worked through in detail as the deal has only just been agreed in principle and no consultation has taken place.
The key benefits to us are:
1) Effectively halving our interest/capital repayment cost.
2) Reducing our cost base.
3) Making better use of our stadium asset and effectively halving any future development costs.
4) Obtaining a cash injection.
5) Increasing the venue's say within Leicester.
6) Reducing the impact of a competitor to our conference and banqueting business.
7) Opening up new commercial opportunities.
One of the major concerns expressed to me were the green seats shown in the Leicester Mercury picture. This picture was a mock up of what the stadium could look like inside. No decision on the colour of any seats has been taken.
It is essential as a club that we all work together and understand each others issues to ensure that we come up with the best way forward for the club as a unified team and as such, I look forward to hearing all your views and sharing our views with you.
In the meantime, I provide below some Q & A's for you to digest.
Will the football club lose its identity as a result of this agreement?
Not at all. The club will continue to play all its home fixtures at the Walkers Stadium. The Walkers Stadium will continue to be our home as before. The Tigers will not be able to eject us out of our stadium.
Does this mean we will no longer own the stadium outright?
Under the terms of the proposed agreement, a new joint venture company will own the stadium, of which ourselves and the Tigers will be 50% partners. We believe that this agreement strengthens the long-term financial stability of the football club.
Who will have first option on choosing fixture dates?
Ourselves and the Tigers will work with our respective football and rugby leagues to ensure there are no fixture clashes. Currently, there are six occasions this season when we have been paired at home on the same Saturday. This new agreement will ensure this can no longer be the case. This agreement should reduce clashes and mean we have more Saturday matches.
Will the Walkers Stadium look any different?
A major joint operation will be undertaken to ensure that the stadium reflects the fact that it is both the home of us and the Leicester Tigers.
How will the pitch cope?
This is a key area and will be the subject of a substantial level of investment. We are confident that the new pitch technologies available to us will ensure that we will have a quality surface able to withstand the demands of football and rugby.
What are the key benefits to the football club?
As well as those listed previously, we believe this is a magnificent venue and that, by joining forces with the Tigers, we can both exploit the full potential of the stadium. Already a flagship football venue, we feel that together, we can make the Walkers Stadium a venue which is the talk of not just Leicestershire, but of the whole of the Midlands and the country.
How does the football club gain financially?
Details of the agreement, for obvious reasons, must remain confidential. However, we can say that this venture will go a long way towards stabilising and strengthening the finances of the football club in the short, medium and long-term. It will not mean a substantial amount of monies being made immediately available to strengthen the playing side but, on a general level, will enable us to compete more effectively against other football clubs.
How does the Manager feel about it?
Craig has been kept fully informed and is fully supportive of the project.
What does a City fan get out of this?
A club that is significantly more secure in financial terms. A club that has a greater ability to compete in terms of wage bill. If the Tigers do anything better than us at Welford Road, we will use their experience to enhance our fans experience of the stadium.
Will the stadium look different for football and rugby matches?
The bowl will need to be redressed for each match. The external part of the stadium will look similar week in week out. The outside of the stadium needs to look like our home, just as much as the Tigers' home.
What will the next away shirt look like?
There are no current plans to have a green away shirt.
Will the pitch be the same as Wigans?
The 'new' pitch surface will use the most modern techniques available to us. The problem with the Wigan pitch was not the type of technology but the fact that they had heavy rolled it which you are not supposed to do with their sort of pitch technology.
Where has the money come for this?
There is no money needed to do this transaction. We will halve our current debt burden and have a cash injection for selling our half share of the ground which we currently do not own. All money we make goes to the team and always has done since administration.
Will I have to queue longer for my ticket?
No. The Ticket Office operation of the football will operate as per this season. The Tigers Ticket Office may operate from a large sub-Ticket Office at the stadium, or, if from the Main Ticket Office there will be more staff/windows operating. It will be essential that our supporters do not suffer as a result.
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