777 Partners / Whatever the hell you like

[Dixieslaces]

Company’s are valued, by their assets, debt position and ability to make money.

Our debt position stands at about 600 +. mill to external lenders, the company doesn’t make money - needs serious investment and faces an existential threat of being kicked out of one of its pluses PL membership.

He's lucky to be getting £69 mill.

The only thing going for us, is we are currently a member of a very wealthy private membership club, that opportunities to get involved don’t come up very often in.

Moshiri is in a shockingly bad negotiation position.

Wouldn't be surprised if we are eventually sold for something nominal.

This is my take on it now, to be honest, no way is Moshiri getting anywhere nearcthe quoted sums, with all this debt loaded on us, but was still shocked at seeing the £60m plus quoted.

Given that article, I would say you are pretty near the mark and he may have to end up walking away from it.

It's plain to see 777 don't have the funds, and that Moshiri is done, so, to avoid a catastrophic Administration then seems best for us he cuts and runs, will he? Well based on his startling decisions so far nothings off the table I guess?

 

[PeregrineT]

Company’s are valued, by their assets, debt position and ability to make money mate.

Our debt position stands at about 600 mill +. mill to external lenders, the company doesn’t make money - needs serious investment, ongoing injections of working capital to fund the stadium and keep the club in business and faces an existential threat of being kicked out of one of its pluses, PL membership.

He's lucky to be getting £69 mill.

The only thing going for us, is we are currently a member of a very wealthy private membership club, that opportunities to get involved don’t come up very often in.

Moshiri is in a shockingly bad negotiation position.

Wouldn't be surprised if we are eventually sold for something nominal.

Correct, and thats why its worth 500m. You are valuing the club, taking away the debt, but it seems like you arent including the stadium. An average club is worth around 500m today(recent sales like Newcastle are evidence of this), and the stadium could safely assumed to be worth 600m(despite costing 750m to build). Thats 1.1 billion, which is far more than 600m in debt. Someone else would probably be willing to buy at 400-450m to be safe, but 777 offered 550m.

 

[Goat]

Correct, and thats why its worth 500m. You are valuing the club, taking away the debt, but it seems like you arent including the stadium. An average club is worth around 500m today(recent sales like Newcastle are evidence of this), and the stadium could safely assumed to be worth 600m(despite costing 750m to build). Thats 1.1 billion, which is far more than 600m in debt. Someone else would probably be willing to buy at 400-450m to be safe, but 777 offered 550m.

Somebody just paid 1.2billion for 25% of Manchester United.

Now whilst we arent in the same bracket as they are, we certainly are worth vastly more than 60m.

 

[Neiler]

Correct, and thats why its worth 500m. You are valuing the club, taking away the debt, but it seems like you arent including the stadium. An average club is worth around 500m today(recent sales like Newcastle are evidence of this), and the stadium could safely assumed to be worth 600m(despite costing 750m to build). Thats 1.1 billion, which is far more than 600m in debt. Someone else would probably be willing to buy at 400-450m to be safe, but 777 offered 550m.

The stadium isn’t an asset until 1. It’ funded, 2 Its built, 3. It starts making money and 4. It’s paid for.

You can’t borrow and owe money on one hand hold that debt, then say we’ve made money on value because we’ve half built something, that’s not making money yet, while we’re trying to figure out how to fund and build the rest of it.

At the present moment the stadium is a liability,

If the stadium is worth 600 mill, then why is Moshiri selling for 69 mill, why is he selling at all….

 

[Hellerad]

FM will take a small cash payout and some development deal with the stadium and/or surrounding area as a cash value.

He’s always been in this for the stadium development. He will want a piece if a piece can be cut.

 

[Neiler]

This is my take on it now, to be honest, no way is Moshiri getting anywhere nearcthe quoted sums, with all this debt loaded on us, but was still shocked at seeing the £60m plus quoted.

Given that article, I would say you are pretty near the mark and he may have to end up walking away from it.

It's plain to see 777 don't have the funds, and that Moshiri is done, so, to avoid a catastrophic Administration then seems best for us he cuts and runs, will he? Well based on his startling decisions so far nothings off the table I guess?

Well if 777 falls through mate, he either has to fund us or renegotiate. I wouldn’t fund it if I was him, because his equity is worth next to nothing, but I’m beyond working out the logic in his decisions he’s a loose cannon.

The clever play is to renegotiate, sell it nominally and keep some of his reputation and good will in the U.K. in tact, he’s always kicked the can the road so suspect hel prob do that.

Leaves the club In an awful state in real terms, picture a summer of selling every one and buying no one, with new contracts given to anyone touching 35.

 

[ForeverEverton]

I find it insane that people think Moshiri is walking away with only 60m.

Maybe if the 777 deal breaks down, but theres a very very good reason hes sitting there waiting on 777 and thats the massive premium they are giving him.

The loans helps of course.



Miami-based private equity firm 777 Partners has agreed a deal to acquire English Premier League football club Everton FC in a deal worth around £550m, subject to approval from the relevant authorites , according to reports.


Several investors have held discussions with the club’s majority shareholder Farhad Moshiri since talks over a deal with MSP Sports Capital collapsed last month, but 777, which is also involved with Spanish side Sevilla, Germany’s Hertha Berlin, and Standard liege of Belgium, has emerged as the cub’s new owner.

In February, Moshiri told Everton’s fans’ advisory board the club was “not for sale” but the British-Iranian businessman, who has invested over £750m since 2016 without with little return on or off the pitch, has agreed to sell his 94.1% stake in the club to 777 Partners.

The price of the club is £60m rising to £130m but I think Moshiri has c£500m in loans on the club.

 

[Neiler]

Correct, and thats why its worth 500m. You are valuing the club, taking away the debt, but it seems like you arent including the stadium. An average club is worth around 500m today(recent sales like Newcastle are evidence of this), and the stadium could safely assumed to be worth 600m(despite costing 750m to build). Thats 1.1 billion, which is far more than 600m in debt. Someone else would probably be willing to buy at 400-450m to be safe, but 777 offered 550m.

Incidentally a deal worth 500 mill doesn’t mean someone is paying, 500 mill it means the buyer is taking on the debt in value, if we have debt of 250 mill with R&M, 40 mill with metro bank, 158 mill with MSP, the remainder will be going to Moshiri for his shares.

About £60 odd mill. Essentially a buyer is agreeing to take on the debt from Moshiri as lender of last resort, but also paying Moshiri £60 mill for his shares. Moshiris shares are worthless .Hes lucky to get that 60 mill. Even though he’s not going to get it. The club isn’t worth the debt and ongoing capital requirements.

The difficulty is 777 can’t meet the conditions of the PL to be allowed join the PL owners due to their requirement of paying the debt and meeting capital requirements, because they don’t have and have never had the funds. It’s a polite legal way of PL saying your cowboys and rejected as owners, by accepting them, but putting a knowingly impossible threshold on them to prove they are fit and proper owners, it’s a polite and legal rejection.

I’m not sure what people think is happening here.

 

[Moomin]

Incidentally a deal worth 500 mill doesn’t mean someone is paying, 500 mill it means the buyer is taking on the debt in value, if we have debt of 250 mill with R&M, 40 mill with metro bank, 158 mill with MSP, the remainder will be going to Moshiri for his shares.

About £60 odd mill. Essentially a buyer is agreeing to take on the debt from Moshiri as lender of last resort, but also paying Moshiri £60 mill for his shares. Moshiris shares are worthless .Hes lucky to get that 60 mill. Even though he’s not going to get it. The club isn’t worth the debt and ongoing capital requirements.

The difficulty is 777 can’t meet the conditions of the PL to join the PL in terms of paying the debt because they don’t have and have never had the funds. It’s a polite legal way of saying your cowboys and rejected as owners.

I’m not sure what people think is happening here.

He will be lucky to make a quid from selling the club at this rate.

 

[Neiler]

He will be lucky to make a quid from selling the club at this rate.

Don’t know mate, he’s registering on here as we speak and pm-ing the lads who reckon we’re worth 550mill - 1.2billion!

 

[jinkyali]

The 60m-130m is merely a first payment.

It was widely reported they are paying 550m, as long as we remain a Premier League club.

Why would they pay 550m to then take on debt of approx 400m plus have to fund the stadium?

Cloud cuckoo land.

 

[Goat]

Why would they pay 550m to then take on debt of approx 400m plus have to fund the stadium?

Cloud cuckoo land.

Ask them, not me.

I would go as high as 3 fiddy.

Why would Moshiri sell an asset he invested 800m into for 60m?

Unicorns and rainbows land.

 

[jinkyali]

Correct, and thats why its worth 500m. You are valuing the club, taking away the debt, but it seems like you arent including the stadium. An average club is worth around 500m today(recent sales like Newcastle are evidence of this), and the stadium could safely assumed to be worth 600m(despite costing 750m to build). Thats 1.1 billion, which is far more than 600m in debt. Someone else would probably be willing to buy at 400-450m to be safe, but 777 offered 550m.

So much wrong here.

 

[Blue peter]

Is the exclusivity period still ongoing? Or can one party to a contract remove itself from it e.g. Moshiri….because it’s clear there is a stalemate, and if 777 can’t satisfy those conditions, then either Moshiri has to keep funding us (throwing good money after bad) or he loses everything potentially. Surely he must now be speaking with other interested parties.

 

[jinkyali]

Ask them, not me.

I would go as high as 3 fiddy.

You keep banging on about them getting 550m. Why? It's utter delusion.