Message To The Leicester Promotor

[TMW 533]

There is a couple of interested parties in buying the promoting rights and speedway side of Leicester but in the current fiancial climate do not want to take on the whole complex which is quite reasonable as would be huge investment.

If these persons could just buy the rights and then pay Hemsley stadium rent like most clubs do I believe that there is decent money to be made at Leicester with the correct people involved and promotion of the club. The problem with this proposal is the amount that DH would want to rent the stadium weekly in excess of 8k a week just to open the gates then you would have the refs fees,paramedics,ambulance and officials fees that is before you pay a rider

 

What would 8K, per week, entitle you to? 1 meeting ? unlimited access?

Edited August 15, 2013 by TMW

[flagrag 704]

The figure I quoted was the rough cost I had been told of and that was just for one meeting a week. I agree that sort of rent is totally unaffordable and out of context but that is DH point it is his toy and does not want anybody else to play with it. So with all the bad feeling and upset there is a section of fans some who attend others that don't due to variety of issues with the current promotor. These people would like him to go but quite obviously he does not wish to do so his only option is to make the rental of the stadium so costly it is not viable for investment. He knows that he will only get a fair market value for the promoting rights before the bspa step in and say stop trying to rip off buyers as the club has little rider asset base , as not in their interest to see new owners pay way over the top for the rights and will not want to lose a club with Leicesters support and stadium. Any new promotion would also need to have a licensed promotor as buddy/baby sitter for the first season unless they kept Alan Jones involved which in my mind would be a brilliant idea as a true fan with good principles.

So unless there is a businessman out there looking to lose or right off money from other areas there is little chance of new promotion at Leicester. I would have a guess that DH would look at offers of around 1million to take it totally off his hands taking into consideration the stadium and the future use of land for sub letting and development

[wandersome 281]

What would 8K, per week, entitle you to? 1 meeting ? unlimited access?

 

a straight jacket?

[arthur cross 492]

Thanks flagrag for your latest post backing up your earlier news about the prospective rent for the stadium.

 

At least DH's valuations/demands all seem to be so stupidly wide of being realistic that he's digging his own downfall with very little room for sympathy from anyone that matters.

 

For some dreadful reason, he appears to always think that reviving speedway in Leicester guarantees himself immunity from any criticism ... yes, he deserves plenty of thanks for the revival but it's horrible to see/hear about so many hassles behind-the-scenes when plenty of them could clearly be solved with just a little bit of diplomacy.

 

As flagrag points out, any new promoter coming into Leicester would need to be overseen by a nearby promoter as a "buddy" for the first season ... indeed, that's what happened with Sheffield providing the "buddy" help for DH's first season as well as the first-ever opposition at the track.

 

However, DH's attitude to some of that help was poor ... in one case, it could have been regarded as a lot worse than that but for the sake of this forum's future and in respect of this country's libel laws, I doubt I can explain further on here.

[TMW 533]

Thanks flagrag for your latest post backing up your earlier news about the prospective rent for the stadium.

 

At least DH's valuations/demands all seem to be so stupidly wide of being realistic that he's digging his own downfall with very little room for sympathy from anyone that matters.

 

For some dreadful reason, he appears to always think that reviving speedway in Leicester guarantees himself immunity from any criticism ... yes, he deserves plenty of thanks for the revival but it's horrible to see/hear about so many hassles behind-the-scenes when plenty of them could clearly be solved with just a little bit of diplomacy.

 

As flagrag points out, any new promoter coming into Leicester would need to be overseen by a nearby promoter as a "buddy" for the first season ... indeed, that's what happened with Sheffield providing the "buddy" help for DH's first season as well as the first-ever opposition at the track.

 

However, DH's attitude to some of that help was poor ... in one case, it could have been regarded as a lot worse than that but for the sake of this forum's future and in respect of this country's libel laws, I doubt I can explain further on here.

 

It's not him that makes them public it's people finding out and finding it in their interest to make them public and possibly stick a bit of enhancement on to boot. There are people who hate him with a passion, rightly or wrongly and, wont rest until he has gone !!!!!!! I am one of the people who goes because it is there maybe I am wrong maybe I should make him court my custom but I don't see why.

 

and.....

 

Looking at tonight's result DH has a higher authority on his side than just the BSPA the rain came down and the 4 points were gained. That 1 point could be vital when it comes down to it against the other contender for the playoff's

Edited August 15, 2013 by TMW

[1 valve 558]

By the way, is that £8,000 "the price with VAT" or "the price without VAT" ? !! ... because that might be another £1,600 that needs stumping up.

[/quot

If it was a full repairing lease i.e. new tenant being responsible for maintenance then there would be no need for VAT to be charged as the default setting is that VAT is not charged on transactions involving land and property.

 

However I think people are missing the point that DH very more than likely has no wish to sell or give up the promoting of the club hence he is quoting what appears to be high prices.

 

I say "appears to be" because 1m for a 99 year lease (I guess 96 now) maybe is not bad value when one considers inflation and the future benefits to be gained over that period. And of course is a way lower cost then the Belle Vue project which incidently the promoters of the Aces will not own as the complex will be run/owned by private equity.

 

As an example of inflation in speedway: Admission prices for my first visit to Blackbird Road in 1969 (equivalent to 50p) rose by 400% to £2.50 by the time speedway closed in 1983 and now 30 years later £15.00 represents an increase of 500% (average 16% per year) on the 1983 price.

 

So even if we use the current much lower inflation rate of 2.5% on a compounded rate in 32 years time (1/3 of the lease) we can expect to be paying at least £32.50 at each meeting which of course would increase the value of the lease. Therefore as in all similar cases DH is quoting nett present value rather than just today’s value in order to reflect the future value of the product he owns i.e. the lease and speedway organisation that didn’t previously exist!

e]

[wandersome 281]

By the way, is that £8,000 "the price with VAT" or "the price without VAT" ? !! ... because that might be another £1,600 that needs stumping up.

[/quot

If it was a full repairing lease i.e. new tenant being responsible for maintenance then there would be no need for VAT to be charged as the default setting is that VAT is not charged on transactions involving land and property.

 

However I think people are missing the point that DH very more than likely has no wish to sell or give up the promoting of the club hence he is quoting what appears to be high prices.

 

I say "appears to be" because 1m for a 99 year lease (I guess 96 now) maybe is not bad value when one considers inflation and the future benefits to be gained over that period. And of course is a way lower cost then the Belle Vue project which incidently the promoters of the Aces will not own as the complex will be run/owned by private equity.

 

As an example of inflation in speedway: Admission prices for my first visit to Blackbird Road in 1969 (equivalent to 50p) rose by 400% to £2.50 by the time speedway closed in 1983 and now 30 years later £15.00 represents an increase of 500% (average 16% per year) on the 1983 price.

 

So even if we use the current much lower inflation rate of 2.5% on a compounded rate in 32 years time (1/3 of the lease) we can expect to be paying at least £32.50 at each meeting which of course would increase the value of the lease. Therefore as in all similar cases DH is quoting nett present value rather than just today’s value in order to reflect the future value of the product he owns i.e. the lease and speedway organisation that didn’t previously exist!

e]

 

I wouldn't have thought he owns anything of that value though 1 valve. I would have thought the value of the lease is also governed by what can be used within the constaints of the lease and the amount of work required to show a return on your investement. I'd not be sure the relative value of the rubble mountains is actually considerably less that when DH started building them.

Edited August 16, 2013 by volty

[1 valve 558]

I wouldn't have thought he owns anything of that value though 1 valve. I would have thought the value of the lease is also governed by what can be used within the constaints of the lease and the amount of work required to show a return on your investement. I'd not be sure the relative value of the rubble mountains is actually considerably less that when DH started building them.

Volty, you are absolutely right the value of the lease would be governed by what you can do with the facility concerned and personally, I have no insight into the scope of the lease in question. If it also does cover the outlying (& ever expanding) mud mountains then absolutely current and future values will be effected in consideration of any cost required to make those areas of use for other activities.

 

My presumption is that the current promotion would sell all of its business interest i.e. the company, inclusive of Speedway license, lease and all other assets. Is that worth 1m? Well, it is if someone wishes to pay it and of course the current owner wants to sell and frankly I think the answer to the latter is a no, and I can understand why that is the case given that after 3 years DH must feel he is making progress with the project and wants to see it continue as a successful business under his stewardship.

[jim the whipper 231]

I don't think there is a 99 year lease to sell at the moment , Lionsden who was a party of the original planning permission etc, said full planning will only be granted if certain conditions on the complex are met after 3 years , very little has changed since the gates opened apart from Mount Beaumont has got higher which I'm reasonably sure was not part of the original plan . the City Council are non too pleased with whats happened at BP according to sources from within it , so in March 2014 would anyone be that surprised to see the council who were very supportive initially do a U-turn when the planning permission comes up for it's 3 year review

[1 valve 558]

I don't think there is a 99 year lease to sell at the moment , Lionsden who was a party of the original planning permission etc, said full planning will only be granted if certain conditions on the complex are met after 3 years , very little has changed since the gates opened apart from Mount Beaumont has got higher which I'm reasonably sure was not part of the original plan . the City Council are non too pleased with whats happened at BP according to sources from within it , so in March 2014 would anyone be that surprised to see the council who were very supportive initially do a U-turn when the planning permission comes up for it's 3 year review

Mount Beaumont just about sums the situation up...Clear as mud.

 

Is it known if the City Coucil expected DH to be reponsible for developing the other none speedway activities as originally percieved i.e. football & BMX type sports or was it down to LCC to seek other partnerships?

[robert72 845]

Mount Beaumont just about sums the situation up...Clear as mud.

 

Is it known if the City Coucil expected DH to be reponsible for developing the other none speedway activities as originally percieved i.e. football & BMX type sports or was it down to LCC to seek other partnerships?

 

I am surprised the council allow dumping on there to be honest plus what an eyesore it looks now.

 

You mentioned in an earlier post a succesful buisness ? is this what you believe when they seem to be missing equiptment to do the track ?

 

Also has mr darcy took his sponsorship out of the club,I hear it was a good sponsorship package for the lions and thats why he became a promotor,If this is the case that is sad for the club.

[jim the whipper 231]

Mount Beaumont just about sums the situation up...Clear as mud.

 

Is it known if the City Coucil expected DH to be reponsible for developing the other none speedway activities as originally percieved i.e. football & BMX type sports or was it down to LCC to seek other partnerships?

I believe as the other projects floundered ,David Hemsley took them on to save the deal defaulting and having to go back to square one with with PP for speedway only . maybe Lionsden will come on here and fill us in with the facts or maybe not !!! anyway last word from me on it before the rose tinted come on with their accusations of hidden agendas and personal grievances

[BTFC LION 163]

Prior to Leicester speedway getting the go ahead, I attended 1 of the public meetings held in Beaumont area. At that meeting were the local city council rep, a rep from a company called Pro 5, [ 6 a side football courts,] a person from the body who wanted to build a velodrome. Also the promoter from Kings Lynn. They were all positive at the time about building a sports complex!! As I was part of a local football club at the time, who had around 300 young players, the reps were all keen to get our support to help them to gain planning permission. Pro 5 offered us reduced rates etc in return for us sending out a message to our community that the whole scheme would be of great benefit to the whole area.We were very keen to try and get some sort of benefit for our club as we were about to loose the grass area were we trained our young players on Sat mornings, also where the car park is now there was 2 floodlit 5 a side courts, the only ones in the area that we could use in the winter months for training. After the planning permission was granted, that is when things started to fall apart as far as I understand it. Pro 5 were bought out by Goals, so our agreement went down the drain, so to speak. It is my understanding is that Goals would not commit a large amount of money to a project at the time due to the fact it was only a 99 year lease, they also have a centre less than 5 miles from Beaumont, that at the time was not doing so well? As for the velodrome, I believe one has been built in Derby at a cost of around 5 million pounds. So why would they need another at Beaumont? The Kings Lynn promoter spoke of setting up an education centre at the track to work with troublesome teenagers, don't know what happened to him or his idea?? So to sum up, if all these 3rd parties were not interested in investing in the area? What can DH do?? Or more to the point what can he do now, or who does he approach to invest in the area around the speedway stadium??

[wandersome 281]

When Dave Darcy was doing the track 'alterations' in february or whenever it was, i can't remember the time other than knowing it was just before Glyn Taylor was supposed to be doing them properly, i spoke to DH about what was going on with the complex and he told me he had taken over the whole project and that BMX tracks for the local yute etc were going to be happening. As much landscaping as has happened, and there has been a considerable amount, i've still seen nothing that resembles a BMX track.

 

Re BTFC's comments, I'm fairly certain that DH would have been untimately responsible for all these investments groups being on board when the council agreed the complex and if the i's hadn't been dotted and t's weren't crossed with these investment groups then it's a bit rich to make out he's a victim of circumstance because everyone buggered off at the first sign of trouble.

Edited August 17, 2013 by volty

[1 valve 558]

i

i spoke to DH about what was going on with the complex and he told me he had taken over the whole project and that BMX tracks for the local yute etc

Thank for the feedback jim, BTFC & volty. It Seems like DH has took on more than he bargained for in terms of other sports being found to complete the designated complex. If I remember correctly the guy from Kings Lyn was being touted as the potential promoter for Leicester, or was he going to be DH mentor? Anyway the project was delayed for a full year due to the non speedway parties not being able to sign up so I guess the missing piece (from my side) is at what point did DH get involved and did the LCC only agree for the speedway project to commence if DH agreed to take on the responsibility for establishing other sporting uses for the remaining areas.

 

It is a shame Beaumont Town lost their facilities and maybe the LCC should step in with some seed corn funding and the club or other such body pursue lottery funding as per Aylestone Park and similar clubs have done in the past

Edited August 17, 2013 by 1 valve