Sigma wants 186 million for the stadium, the city will negotiate the price

Olomouc - The first league football club Sigma Olomouc is demanding almost 186 million crowns for the potential sale of Androva Stadium near the city center, which the local government is seriously interested in. The city will still negotiate the price with the club. Mayor Antonín Staněk (ČSSD) informed reporters today that the intention to acquire the stadium for city ownership will be discussed by the council in mid-November.

The planned sale of Androva Stadium to the city is part of a complex transaction aimed at stabilizing the economic situation of the football club, which has struggled with high losses in recent years and ten-million-euro debts. A consulting firm, Grant Thornton, recommended separating the sporting part of the club from the football infrastructure.

"The offer (from the joint-stock company SK Sigma), which has been proposed to us, is indicative, meaning it is an offer that we are starting to negotiate," Staněk stated, adding that the current price demand from the football club corresponds to the value of the transferred property of the stadium, as assessed by experts. "Our intention is to negotiate a more interesting, advantageous price," Staněk noted.

The financial performance of Sigma football has been loss-making in several previous years. In the 2015/16 accounting year, the club reported a loss of 25.7 million crowns and owed shareholders 71 million due to loans for operations. At the end of the 2014/15 accounting year, the club had accumulated losses of 98 million from previous periods. The results for the year 2016/17 have not yet been published.

However, Sigma managed to settle its debts this year. Entrepreneur Josef Lébr sold a one-third stake in the SK Sigma Olomouc MŽ association for a symbolic price after 20 years. In return, the club will repay him around sixty million in loans. SK Sigma Olomouc received money from the sale of land under the artificial grass field.

The club's management is now in talks with investors about a capital entry into SK Sigma. One of the stands of Androva Stadium is to be transferred to the city in exchange for its one-third stake in the club. The city government wants to retain a symbolic one share in the company SK Sigma Olomouc.

"The intention is to secure ownership of the sports infrastructure while cutting off from operating the sports club. This intention is in line with the recommendations of the consulting company Grant Thornton," Staněk noted, adding that the city would gradually pay off the purchase price for Androva Stadium.

According to the mayor, several investors are interested in the football club. "There are certain concerns about those who insist they want to take full control over the company along with its assets," Staněk warned. If the city becomes the owner of the stadium, according to the mayor, the entire sports infrastructure will serve sports regardless of developments in the Sigma football club.