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Celtic’s Mortgages to Co-operative Bank


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Celtic’s Mortgages to Co-operative Bank and Glasgow City Council: Westhorn Training Ground

POSTED BY FOOTBALLTAXHAVENS OCTOBER 29, 2013 LEAVE A COMMENT

FILED UNDER MORTGAGES

exec-comm-map-westhorn.png?w=750

Celtic F.C. Limited, the wholly owned subsidiary of Celtic PLC, have loans from the Co-operative Bank of £34 millionhttp://www.thesundaytimes.co.uk/sto/business/Finance/article1304380.ece which are secured against land in 3 mortgages:

  • Celtic Park
  • Celtic Triangle [The land around Celtic Park]
  • Westhorn Training Ground

This post relates to the Westhorn Training Ground which lies right next to Barrowfield, Celtic’s old training centre. It is the cross hatched area in the map above.

Mortgages

Celtic PLC has two mortgages on the Westhorn land. All Outstanding mortgages can be view at the bottom of: https://www.duedil.com/company/SC003487/celtic-plc/financials

One to the Co-operative Bank:

cooperative-westhorn.png?w=305&h=305

And another to Glasgow City Council:

gcc-westhorn.png?w=302&h=322

The amazing coincidence is that the two mortgages were created the same day, the 21st April 2009.

So are were led to believe that Celtic, Glasgow City Council, the Co-operative Bank and Harper McLeod, who drafted the Celtic-Co-operative Bank mortgage, were in the same room making the transfers and agreements? Or was there a lot of to and fro’ing across Glasgow that day?

Seems strange that the land became security on a Co-operative Bank loan the same day it was sold by Glasgow City Council. Hmmm coincidence?

Questions?

Why did Celtic want Westhorn in April 2009?

Lennoxtown Training Centre was opened in October 2007, by the then chairman, Brian Quinn, a year and half earlier. It obviously wasn’t wanted to extend Barrowfield, their old training centre. They already had Lennoxtown. It is understandable for Celtic to acquire land near their ground, in the Celtic Triangle, however Westhorn is not nearby. Why continue with an irrelevant purchase – unless someone else places a higher value on it – perhaps the Co-operative Bank?

Why were Glasgow City Council selling the land when it obviously wasn’t going to be developed as a training ground?

Why not sell the land for residential development like the old Belvidere Hospital site nearby and get higher council taxes every year? Or hold a competitive auction? In the Glasgow City Council mortgage above, the area is 5.33 Hectares which is 53,300 sq metres. That’s about 7.5 football pitches, assuming 7,000 sqm a pitch. That’s a lot of houses.

So what was the valuation of the land?

Valuation Differences

In Glasgow City Council’s Executive Committee report for 30th November 2007, available under reportshttp://www.glasgow.gov.uk/councillorsandcommittees/DocumentSearchPublic.asp on their website, it states:

westthorn-sic-rcreation-ground.png?w=600&h=183

However Gerry Braiden, in The Herald article titled ‘Celtic close to deal over disputed land‘ on Wednesday, 17th January 2007 stated:

‘Despite the intervention of the District Valuer it has not been possible, after almost two years, to agree a price for Westthorn Recreation Ground, previously valued at around £5m.’

http://www.heraldscotland.com/celtic-close-to-deal-over-disputed-land-1.851123

That’s quite a discrepancy between £675,000 and £5 million. One is over 7 times the other. The price paid is quite a discount.

Considering that the day Glasgow City Council sold the land, it then becomes security for part of the Co-operative bank loan it appears as if the purpose was to facilitate the delivery of security for the Co-Operative Bank loan? Surely this is state support and against EU regulations as well as UEFA Financial Fair Play [FFP] rules. And who is on the UEFA board for FFP, former Celtic chairman, Brian Quinn.

Which valuation was placed on the land within the Co-operative Bank mortgage £675,000 or £5 million or more?

Note: The reason Glasgow City Council have mortgage is to have Standard Security to ensure they get 50% of any uplift in value if Celtic sold the land within 5 years of the sale as can be seen above in the Executive Committee extract above. With the sale in 2009 then this mortgage will lapse in 2014.

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Keep it up lads. Let's see them spin their way out of Council aid. That is my council that gave land away at a fraction of its value , so it is out of mine and many others taxes. Someone should call Alex Tommo's bluff when he said if it was Septic upto no good he would investigate. Tell him that there is evidence of allegedly something shady that could contravene not only UEFA FFP but also taking tax payers money and basically giving it to a multimillion pound business. Thnk of the hospitals and schools....

In fact where is Mark Daly these days....

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You should care

It is about time every one of us cared.

They declared WAR on our club, yet we're not supposed to mention them.

Better still, start a Sub Forum where all matters relating to them can be put.

That makes a lot of sense, and if you do not want to know, keep the fuck out!

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