Lancashire County Cricket Club (LCCC) wants to raise £3 million for a new four-star branded hotel at its Old Trafford cricket ground, by launching its first ever retail bond.
The club is offering bonds for investments from £1000 and promises a five-year initial fixed term offering 7% gross interest per annum, split between 5% in cash and 2% in Credit4Cricket Units, which can be used to buy international and domestic tickets, hospitality and Membership fees at the ground.
The plan to raise £3m will see the Old Trafford Lodge demolished to make way for a new hotel that the club says will be a four-star offering.
Lancashire County Cricket Club CEO Daniel Gidney says: “We are proud that, in our 150th year, Lancashire County Cricket Club has an enviable heritage in an iconic location with cricket in our heart but business on our mind.
“Our vision is for Emirates Old Trafford to provide one of the best sports, entertainment and business experiences in world cricket. An attractive, contemporary hotel that will appeal to corporate visitors and private customers alike is central to this aim.”
The club recorded operating profits of £3.54m in the 2013 financial year and this has led the club to move forward with improvements to the stadium and corporate facilities.