777 Partners / Whatever the hell you like

[Dixieslaces]

Some message going around based off some podcast. Any truth in the rumour that staff were late being paid in both July and August?

Heard this other night on a Twitter something or other, said it will be made public soon, dont recall who said it but is a shocker or not, if true

 

[pfim]

I don't see how that last loan from 777 is any different to all the others?

The MSP loan was for a specific purpose, the stadium, a capital expenditure. Something that will generate future revenues.

This loan is to fund operations. Pay salaries, keep the lights on. It means for the time being that the cash flow is not covering costs, or there is a gap in timing (the gap in timing is why they would borrow against future TV revenue).

Companies don't file for bankruptcy/admin and reorganize because of too much total debt, they file because there is short term cash flow issue (which can be brought on by a number of factors: reduced cash from operations, loan payments due etc) and they cannot meet their obligations as the come due.

 

[GrandOldTeam]

Some message going around based off some podcast. Any truth in the rumour that staff were late being paid in both July and August?

Nonsense - it would definitely have hit the media.

Amazing how these comments only come out after hysteria around the last loan...

 

[Marius57]

Nonsense - it would definitely have hit the media.

Amazing how these comments only come out after hysteria around the last loan...

Thought that would be the case. Apparently paying over £540k per week on loan repayments as well.

Just don’t get why any potential buyers would put any money in if we were going into administration. They could buy us for buttons afterwards so wouldn’t make any sense to waste money now.

 

[Dixieslaces]

Nonsense - it would definitely have hit the media.

Amazing how these comments only come out after hysteria around the last loan...

To be fair this broke just before the news re 777 on Twitter, maybe only an hour so before and i did dismiss it as waffle and probably is but then Ornstein broke his stuff and what do you know.

So much to decoide and decipher hard to tell what is truth but very concerning all round

 

[AndyRJ]

Forget the publication for a moment...

I don't doubt Ornstein, he broke this and it'll be true;

• Everton have received a sizeable loan from prospective new owners 777 Partners.
• Premier League rules prevent the company from investing directly into Everton via an equity injection, unless and until the deal it has in place with Moshiri is granted a green light.
• Given Everton’s pressing need for immediate funding, 777 has lent them money on an interim basis to help with short-term working capital requirements and the stadium build.

.... But why all of a sudden the narrative/commentary around administration/needing that loan just to stay operating? We've forever been taking loans - why would a loan by a potential future owner by any different to previous loans?

If there was cash in the business to cover ongoing expenditure then why would 777 make a loan to us?

The fact that there has been a loan indicates there isn't enough capital, ergo a business without working capital is at risk of Administration.

 

[kenada_blue]

Heard this other night on a Twitter something or other, said it will be made public soon, dont recall who said it but is a shocker or not, if true

John on Toffee TV said he knows they've been paid on time and theres nothing in it

 

[GrandOldTeam]

If there was cash in the business to cover ongoing expenditure then why would 777 make a loan to us?

The fact that there has been a loan indicates there isn't enough capital, ergo a business without working capital is at risk of Administration.

This was only last week;

Ray of light for cash-strapped Everton as stadium loan lands | TheBusinessDesk.com

Doubts over financial resources of latest suitor

www.thebusinessdesk.com

Mr Quinn said: “This is extremely good news for Everton and (its) fans.

“It removes any threat of administration, secures a significant amount of the additional funding for the stadium and paves the way for further investment or the completion of a senior debt package to complete and secure the long term funding for Bramley-Moore.

“The additional funds originally intended as working capital for the use of Everton Football Club have not been invested and as reported extensively elsewhere, MSP Sports Capital are not equity investors in Everton Football Club, but have provided over £100m of loans to the stadium development company.

“This should be greeted with a huge sigh of relief and the hope now is that appropriately-skilled and funded equity investors are found for the football club.”

 

[Moomin]

Thought that would be the case. Apparently paying over £540k per week on loan repayments as well.

Just don’t get why any potential buyers would put any money in if we were going into administration. They could buy us for buttons afterwards so wouldn’t make any sense to waste money now.

If we do go into administration its open market and plenty of people will come to the table to have a chance to acquire us on the cheap.

777 are jumping the que and trying to keep us afloat to stop that and acquire us is my case.

 

[Dixieslaces]

John on Toffee TV said he knows they've been paid on time and theres nothing in it

A bit of reassurance in a murky picture!

Glad it wasnt the Esk like

 

[anton66]

What a complete mess this owner has got us into.

 

[Dixieslaces]

This was only last week;

Ray of light for cash-strapped Everton as stadium loan lands | TheBusinessDesk.com

Doubts over financial resources of latest suitor

www.thebusinessdesk.com

Isnt this just addressing the Stadium finance tho?

The £20 Million from 777 is day to day costs?

 

[Dixieslaces]

If we do go into administration its open market and plenty of people will come to the table to have a chance to acquire us on the cheap.

777 are jumping the que and trying to keep us afloat to stop that and acquire us is my case.

seems logical

 

[pfim]

This was only last week;

Ray of light for cash-strapped Everton as stadium loan lands | TheBusinessDesk.com

Doubts over financial resources of latest suitor

www.thebusinessdesk.com

"“The additional funds originally intended as working capital for the use of Everton Football Club have not been invested and as reported extensively elsewhere, MSP Sports Capital are not equity investors in Everton Football Club, but have provided over £100m of loans to the stadium development company."

The MSP money goes to the stadium construction. It doesn't go to working capital. That is the gap that the 777 loan addresses.

It means that after the club have pledged their TV money to R&M, they still don't have enough to pay the bills.

 

[Dixieslaces]

"“The additional funds originally intended as working capital for the use of Everton Football Club have not been invested and as reported extensively elsewhere, MSP Sports Capital are not equity investors in Everton Football Club, but have provided over £100m of loans to the stadium development company."

The MSP money goes to the stadium construction. It doesn't go to working capital. That is the gap that the 777 loan addresses.

It means that after the club have pledged their TV money to R&M, they still don't have enough to pay the bills.

This was my understanding.