----- Original Message ----- From: Paul Cundell > 
I would agree if we were the owners of the stadium or were borrowing the money 
to buy the stadium. 
Why would you go into debt to renovate someone else's property? 

It's a commercial property so needs a different
mindset to that of thinking about a house and home.
Commercial property may be "owned" by somebody else but that somebody else does 
not want to ever enjoy vacant possession or take up occupation themselves, and 
in reality just wants the income stream. They don't really want the property - 
it is just a vehicle or means to an end. They will never want to "live" in it. 
That's the last thing they want.

The occupier has long term possession rights and makes long term business use 
of the premises in order to carry out their business/make a profit. Investing 
in the property they occupy in the long term can make perfect business sense 
and frequently does.

Even looking at the domestic picture, if you were renting an unfurnished and 
unimproved property and you were guaranteed to be living there for the next, 
say 15 years, you might well borrow to put in an inside bathroom and new 
kitchen or insulate it to keep your bills down, or put in an electric power 
shower that sort of thing. If you wanted your friends to visit you might even 
decorate it at your own expense. 

Of course you would need a contract that says that the rent is not increased 
even by one penny because the property is now better than it was. That is the 
commercial property reality.

My point is that this argument does not hold water or not at least by means of 
the logic being used.

Taking it further though, just because it can be seen as being normal 
commercial expenditure only makes it even more clever if what you are improving 
with the right hand is a property which you own by the left. 

Now, the first points are "normal" thinking whereas the second points are Ken 
Bates thinking (which I assume is what the good Doctor is getting at). It is 
never what you assume it to be.

Even more interesting is the fact that it is obviously now possible for the 
club to arrange facilities of millions of pounds with no obvious security. 
Where does that put the buyback of Thorp Arch when TA itself could be used as 
security ? You could say the same for the ground of course.
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