trueblue84
Player Valuation: £50m
He's the real life eric cartman.Not looking for insider stuff but do you really wear a bobble-hat in real life, like, even in summer and that?
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He's the real life eric cartman.Not looking for insider stuff but do you really wear a bobble-hat in real life, like, even in summer and that?
Easiest way to explain:
You want to buy a completed new build house.
Is the amount you pay the same as what it cost to build? No, of course it's not, it's significantly more. Conversely if you buy a partially built house because the builders can't afford to complete, you'll often get it for close to cost.
That wasn't really my point (though it's also true that the stadium would cost more if started now)...I get that the stadium would cost more to build if we started now, which is a positive. The value of the club however does not have a direct relationship to that though, so I don't think your new build house example is particularly relevant here.
Try selling it for that, though. Unlike a house, a stadium's value is driven by its tenants. If they fold or move, more often than not the ultimate outcome is demolition.That wasn't really my point (though it's also true that the stadium would cost more if started now)...
My point is that the value of (and therefore the price to purchase) an asset (such as a house or a stadium) jumps at the moment of completion. So to labour the house metaphor - let's say a house costs 100k to build. The moment it's completed it's worth significantly more than 100k. If it's only half complete and the builders can't afford to complete it, you'd get it pretty close to the cost of build to that point.
Same with the stadium. It's likely to end up costing in the region of £700m to build. But *once complete* most estimates have valued it as a > £1 billion asset.
Who wants to buy that stadium if not Everton, though?Easiest way to explain:
You want to buy a completed new build house.
Is the amount you pay the same as what it cost to build? No, of course it's not, it's significantly more. Conversely if you buy a partially built house because the builders can't afford to complete, you'll often get it for close to cost.
No. They're buying everton, which the stadium is a part of. The asset value of that stadium (and therefore of everton) jumps when it's completed.Who wants to buy that stadium if not Everton, though?
It's not analogous to a house, which has any number of potential buyers or tenants.
You're the one comparing it to a house, and I'm telling you it's nothing like a house.No. They're buying everton, which the stadium is a part of. The asset value of that stadium (and therefore of everton) jumps when it's completed.
I'm not saying all our problems will be solved. The asset value of the stadium will still increase once it's completed - if for no other reason than it can't generate any income until then. ANY capex asset's value increases above construction/build/manufacturing price once it is completed, it's not specific to houses or stadia. My sole point was that buying everton PRIOR to stadium completion will be cheaper than buying it POST stadium completion (and by more than whatever remains to be paid to complete - c.£50m)You're the one comparing it to a house, and I'm telling you it's nothing like a house.
It's not transferable, except to a company that would want Everton as a tenant - and given the lack of alternative tenants in that scenario, they wouldn't be able to maximise rent, either.
Look, I want all our financial troubles to disappear when the stadium is completed - but that simply won't happen.
That wasn't really my point (though it's also true that the stadium would cost more if started now)...
My point is that the value of (and therefore the price to purchase) an asset (such as a house or a stadium) jumps at the moment of completion. So to labour the house metaphor - let's say a house costs 100k to build. The moment it's completed it's worth significantly more than 100k. If it's only half complete and the builders can't afford to complete it, you'd get it pretty close to the cost of build to that point.
Same with the stadium. It's likely to end up costing in the region of £700m to build. But *once complete* most estimates have valued it as a > £1 billion asset.
Why?I'm not saying all our problems will be solved. The asset value of the stadium will still increase once it's completed - if for no other reason than it can't generate any income until then. ANY capex asset's value increases above construction/build/manufacturing price once it is completed, it's not specific to houses or stadia. My sole point was that buying everton PRIOR to stadium completion will be cheaper than buying it POST stadium completion (and by more than whatever remains to be paid to complete - c.£50m)
I'm not saying all our problems will be solved. The asset value of the stadium will still increase once it's completed - if for no other reason than it can't generate any income until then. ANY capex asset's value increases above construction/build/manufacturing price once it is completed, it's not specific to houses or stadia. My sole point was that buying everton PRIOR to stadium completion will be cheaper than buying it POST stadium completion (and by more than whatever remains to be paid to complete - c.£50m)
Think he's a supporter.Alan Stubbs? It’s none of his business.