777 Partners / Whatever the hell you like

[paultheblue]

If 777 were to pull out tomorrow where would that leave us?
I assume they would want immediate repayment of there loans but as we haven't got any money they would not get any.
If they were to bankrupt us or put is in administration they still wouldn't get there money.
So what would happen? I would assume Moshiri would have to fork out the running costs until he finds a buyer or borrow more from MSP who also would lose there money if we were to fold.
I know this is a simplified projection of events but one think is for certain the brown stuff will be hitting the fan very shortly.
I for one would rather take my chances without 777 than have them as new owners.

 

[Librarian]

They didn’t agree with MSP’s valuation of the club .

Yes, And they used their clause to stop it whereby they ‘can demand repayment of their debt before the borrower takes on any further borrowing’.

So MSP would have had to pay them off.

Instead MSP invested in the stadium company instead of Everton.

 

[Eggsyblueskin]

They have to raise the funds, that’s the point I’m making.
They probably have interested parties but those investors need to know if they commit then the PL won’t reject anyway.
It’s easier to secure the funds if the PL make a public statement saying they are ‘mindful to accept’.

You can guarantee to invest in an enterprise subject to conditions being met , such as approval being granted in this case.
And 777 could have produced evidence of that guaranteed investment to the PL .

 

[Eggsyblueskin]

Yes, And they used their clause to stop it whereby they ‘can demand repayment of their debt before the borrower takes on any further borrowing’.

So MSP would have had to pay them off.

Instead MSP invested in the stadium company instead of Everton.

It still boils down to R&M blackballing MSP rather than Moshiri .

 

[PeregrineT]

Absolutely scary!!! Whoever takes over will need deep pockets re cash flow but possibly will need a longer term investment for a suitable return - I know the American business community thinks that the PL as a commodity has not reached it’s value potential in terms of televised worldwide rights, so clubs may generally appreciate in value…..but that’s one hell of a commitment. The only way I think any investor gets value for money, is if we fall into administration unfortunately. I just don’t see how anyone els gets a return unless they fund and then sell the stadium which would invalidate the lease agreement with Peel.

Dont worry, thats napkin math thats just not close to correct. The statements "23m per month" and "250m left" contradict themselves.

The club costs 17m per month to run(from the official accounts). The stadium is to be completed within the next 9 months. If it were truly 23m in operating and construction costs per months that would be 6m x 9 months or 54m. Neither figure is close to correct. But any reasonable person can assure you that there is NOT 250m left as thats 1/3rd of the entire build cost. The club and stadium combined are worth over 1 billion, and non-moshiri debt is something like 500-600m.

 

[Librarian]

It still boils down to R&M blackballing MSP rather than Moshiri .

Yes but MSP still had a choice, they could have met the clause and paid off R&M and Moshiri.

They didn’t

so now 777 are presented with the same choice/ conditions.

It has been put up to them by the PL who ‘are minded to accept’ them if they do.

We’ll see if they can.

It does not appear that there is anyone else willing to. If others are ‘waiting in the wings’ what are they waiting for? they know the deal either match it or improve on it.

They are waiting for the situation to deteriorate so that Moshiri and others are forced to take a haircut.

That situation is not good for us either.

Only bad choices left.

 

[Bedfordblue]

Why would anyone pay more than the apparent value of the business?
For one thing the more money you spend on the actual purchase means you have less money to invest in and improve the business.
In my opinion the real culprits in this mess remain the shady R&M group who refused to accept MSP’s valuation of the club.
It is also increasingly apparent that 777 can only meet the higher asking price by obtaining loans and loading the club with more debt.
I assume that no one else can officially open negotiations until 777 withdraw from the purchase ( which they have completed subject to PL approval ), which will presumably only happen when the , (already extended ), agreed time period for completion has expired.

Must admit I was under the impression the ‘exclusivity period’ had ended months ago. Certainly having agreed a sale price etc I’d be a bit surprised if anyone else was still locked out of tabling an offer.
I said in a previous post almost any credible alternative would be viewed more favourably that 777 so even if they couldn’t formally make and offer (which like I say I’m not convinced is the case) a leak to a new paper and the would be uproar if they wouldn’t even be considered.

 

[Goat]

Basically.

If 777 get approval we are totally screwed
If 777 dont get approval we are totally screwed

Negative, miserable, DOOMER, whatever you want to call me, but I dont see a single way out this whole mess without the club that is currently smoking to become a raging inferno.

 

[matty1878]

Basically.

If 777 get approval we are totally screwed
If 777 dont get approval we are totally screwed

Negative, miserable, DOOMER, whatever you want to call me, but I dont see a single way out this whole mess without the club that is currently smoking to become a raging inferno.

exactly

 

[MikeH72]

Basically.

If 777 get approval we are totally screwed
If 777 dont get approval we are totally screwed

Negative, miserable, DOOMER, whatever you want to call me, but I dont see a single way out this whole mess without the club that is currently smoking to become a raging inferno.

Are you renewing your season ticket mert?

 

[Goat]

Are you renewing your season ticket mert?

Already done it, 110 quid a month.

I hate it, but my Son does not share my hatred so I am forced to go for family.

Now I have my Grandson, he is Everton mad, I kid you not, he spends every waking hour talking about Everton, it breaks my heart Mike, it really does.

 

[Blue Tumbleweed]

Dont worry, thats napkin math thats just not close to correct. The statements "23m per month" and "250m left" contradict themselves.

The club costs 17m per month to run(from the official accounts). The stadium is to be completed within the next 9 months. If it were truly 23m in operating and construction costs per months that would be 6m x 9 months or 54m. Neither figure is close to correct. But any reasonable person can assure you that there is NOT 250m left as thats 1/3rd of the entire build cost. The club and stadium combined are worth over 1 billion, and non-moshiri debt is something like 500-600m.

Hi Peregrine,

Could you expand on that for me please, as those 'Napkin maths', come straight from the public domain. I.e. The £23m pm for operating and construction costs are in the public domain e.g. the Athletic.

One of the founders of the PL (an agent whose name escapes me, but it is out there) has looked at the stadium costs, and he valued the construction costs at a minimum of £780m, and suggested it 'could be' as high as £840-850m to complete.

As for £6m x9 = £54m Well surely, that is a bit simplistic isn't it? There will be a completion balloon payment to be made. I.e. withheld payments to ensure that LO'R don't screw the club over. NB Don't forget the stadium was on a fixed price contract that due to external circumstances i.e. the Russo-Ukrainian war, building and labour costs spiralled (Brexit didn't help much either...)

No-one else other than Moshiri (and EFC via loans), MSP/Blythe and 777 have paid into the stadium company to pay LO'R contractual obligations. Maybe you could fudge the figure down from £250m, but to what and to what extent of interest has accrued? I mean MSP and Blythe injected £140m into the stadium project, BUT we now owe them £158m...

I genuinely and sincerely ask you, where I am obviously incorrect?

Good wishes,

B TW

 

[Goat]

Hi Peregrine,

Could you expand on that for me please, as those 'Napkin maths', come straight from the public domain. I.e. The £23m pm for operating and construction costs are in the public domain e.g. the Athletic.

One of the founders of the PL (an agent whose name escapes me, but it is out there) has looked at the stadium costs, and he valued the construction costs at a minimum of £780m, and suggested it 'could be' as high as £840-850m to complete.

As for £6m x9 = £54m Well surely, that is a bit simplistic isn't it? There will be a completion balloon payment to be made. I.e. withheld payments to ensure that LO'R don't screw the club over. NB Don't forget the stadium was on a fixed price contract that due to external circumstances i.e. the Russo-Ukrainian war, building and labour costs spiralled (Brexit didn't help much either...)

No-one else other than Moshiri (and EFC via loans), MSP/Blythe and 777 have paid into the stadium company to pay LO'R contractual obligations. Maybe you could fudge the figure down from £250m, but to what and to what extent of interest has accrued? I mean MSP and Blythe injected £140m into the stadium project, BUT we now owe them £158m...

I genuinely and sincerely ask you, where I am obviously incorrect?

Good wishes,

B TW

Your figures seem ok to me.

A lot of people seem to have their head buried in the sand with regards how utterly screwed we are cash wise and they dont understand why potential "investors" arent lining up to invest in the money black hole we call Everton.

 

[MikeH72]

Already done it, 110 quid a month.

I hate it, but my Son does not share my hatred so I am forced to go for family.

Now I have my Grandson, he is Everton mad, I kid you not, he spends every waking hour talking about Everton, it breaks my heart Mike, it really does.

The thing I’d be saying and your lad should also consider, is that when the club goes under you are going to have to find something else to occupy your weekends anyway. So you might as well get a head start on it and save yourself some money also.

I say this as someone that gave up their season ticket in 2019 and has only attended one game since. I also don’t have any family commitments keeping me tied to it, so fair play. I just couldn’t imagine investing my money in an entity that does nothing but make me miserable and probably won’t exist in a few years time.

 

[Goat]

The thing I’d be saying and your lad should also consider, is that when the club goes under you are going to have to find something else to occupy your weekends anyway. So you might as well get a head start on it and save yourself some money also.

I say this as someone that gave up their season ticket in 2019 and has only attended one game since. I also don’t have any family commitments keeping me tied to it, so fair play. I just couldn’t imagine investing my money in an entity that does nothing but make me miserable and probably won’t exist in a few years time.

Ive told him that im gonna do 1 season at BMD, just for the experience and then probably bail.

Im at my limit to what I can afford, when my son hits adult prices, I just cant justify it.

If it was just me, yeah, I would have bailed after Carlo.