Giants Park Community Stadium Sports Educational

Giants Park Community Stadium & Sports / Educational Village Potential for community shares issue? Proposal; of Crusaders FC and Newington FC

Crusaders FC Background • Established 1898, proud working class institution • Became senior club 1949, replacing Belfast Celtic • League Winners 4 times, Irish Cup 3 times • Current Manager, 7 trophies in 7 years, • This Year: 3 rd Irish Cup Final in 4 yrs, League Cup Winners, SF Setanta Cup, UEFA qualification • Owned, run by fans, affiliated to Supporters Direct

What’s the problem (1) l l l Meet rising Standards: 2007 -08 League moves to Licencing. Initial applicants ranked by points; Crusaders in 15 th place (12 team League) Debt: Owed £ 470, 000 – much to HMRC, Bank, Brewery No credit: At limits of borrowing with Bank (Bank a “zombie” bank) Needed an immediate £ 30 k to meet licencing criteria Needed around £ 100, 000 to take advantage of (to ‘match’) available grant aid

What’s the problem (2) Football is popular, but doesn’t pay: Except Linfield, barely a financially sustainable club in N. Ireland! Not an investable business l Island wide, “ 80% technically insolvent” , Drury 2008 l Standards Rising: IFA, UEFA, (AIPL? ). l Requires new model. MODEL NEEDS TO - Generate (non football) income & be sustainable - Embrace all communities, welcoming leisure venue - Local authority involvement / “buy in” - Community “buy in” - Sports development approach Crues / Newington proposal is that model ! l

What’s been done? Bond Scheme • • Bond scheme Base rate + 2. 5% Units of £ 250, no limit Payable within 3 years Bondholders unsecured 46 Bondholders Range £ 250 to £ 23, 000 • • - 28: amounts less than £ 1000 - 9 x £ 1000 or above - 3 x £ 5000 or above - 3 x £ 10, 000 or above • Ring Fenced to Ground Development Ø New 4 g artificial surface – opens stadium 7 days Ø New floodlights Ø New changing rooms Ø 2 new 830 seat stands (modular, moveable) Ø Renovated North Stand Ø New pitchside fencing Means Ø Welcoming, open Ø Better community club Ø Better Youth Academy Ø New Womens section Ø Better income streams

Progress, but Still Problems The Good • Technically Solvent: Debts still @ £ 470 k, Asset net book value of £ 1. 4 m • Profitable for last 3 years • Shifted debt from “hard” creditors to “soft” creditors • Grant £ 400 k with Newington FC for “Mes Que un Club” • Aim at Survival for 3 years, then “New Stadium” The Bad & Ugly • Financially Precarious • Not Solvent, based on ability to meet liabilities as they arise • Cash Flow nightmare • Still over-paying players, based on basic trading • Still “footballers first” in creditor priority • Cash culture prevails • Still some dangerous “lights out” creditors • Still gambling on success

Giants Park Community Stadium & Sports/Educational Village A sustainable, shared sports ‘Hub’ in North Belfast Proposal of Crusaders FC and Newington FC with Belfast City Council

North Belfast • • • Most segregated part of N Ireland 22 of 42 NIO “Peace Walls” Highest “Troubles” related deaths Poor access to leisure facilities High levels deprivation

Ø Ø Ø 4000 - 8000 Stadium (UEFA, DDA Eco compliant) 3500 seat Indoor “Pro-Basket” arena & public ice-rink Sports Village: 100, 000 sq ft rental space Tertiary Education Block / “Hub” Belfast Met. Football Academy Signature Youthzone Soccer Dome / MUGAs Hotel & Retail International Centre of Excellence (? ) GAA 3 G pitch Adventure Golf PLUS - Global level media interest, 2000+ jobs Main Features

Sports Educational Village “A business park with a pitch in the middle” • 100, 000 – 120, 000 sq ft let space • Anchor Tenant: 3 rd level Educational) • Sports Medical Unit • Sports Retail Unit • Sports Consultancy Unit • College Coaching Unit • Scope for Council play, sport, leisure depts rental

SUSTAINABLE BUSINESS MODEL* Permanent Tenant (s) Stadium Company Balanced Revenue Streams Sports Events (10%) Concerts/ Exhibitions (5%) Community Involvement and Events (5%) Business & Property – Leasing & Rental (80%) * This model stems from a ‘Global Model of Best Practice’ from research by University of Ulster

Overtly Cross Community ESSENCE OF THIS PROPOSAL Social Employment Enhancement Economic Sustainability

Key Club Benefits Sports Development “Hub” : • Great playing/training facilities • Competitive advantage • A welcoming stadium to be proud of, DDA, UEFA compliant, Eco-friendly • Improve attendances. • Wider usage for school, community, events • Create great media offices & hospitality space. • Commercial income - match day facilities and let rental units secures long term clubs’ future. • Sports Apprenticeships, on site Sports medicine • Governed by “Stadia Co” separate from Clubs !!!!!!

Community Shares ? • Developer to build whole scheme • £ 200 m total • Clubs can be “sweetheart” tenants, or • Clubs can “buy equity” • Crusaders can redevelop Seaview to clear debts • Clubs can now fundraise for equity • Community Shares, could lever in significant North Belfast “ownership” • Issued through clubs to maintain communal balance, eg - X shares Crusaders - X shares, Newington - Y shares, independent • Could lever access to stadia grant funding as part of equity

Next Steps Expression of Interest l Development Brief l Currently, due diligence l Council decision by September l Funding, Financing, Planning, Tendering & Build! l Quick decision and momentum important. THEN l Set up Stadia Co. l Community Shares issue l