777 Partners / Whatever the hell you like

[Street end man]

If BK was in charge, of it will be full of blank pages ....

Hope it's not got those 3D pop out pages like the books I had in the Infants, I'd brit a shick if Tosuns conk popped out at me lol

 

[COYBL25]

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@ForeverBlue92

He`s such a great owner, people are even writing books about him lol

#moshmangotthis

 

[Moderatelywarmwater]

Nothing leaking about this at all. I’m assuming this is a good (well in the short term) thing and that a deal has been thrashed out to push the deadline back again

 

[TmoMoney0721]

Nothing leaking about this at all. I’m assuming this is a good (well in the short term) thing and that a deal has been thrashed out to push the deadline back again

Oh i'm betting if there's an extension we will here about it one way or another. Most likely it will come from a 777 source saying the same thing they always say.

 

[degsy]

Have 777 defaulted yet?
Will they?
Can a Pyramid be a House of Cards at the same time?

MSP will...can?? Take 51%

 

[CielosGrises]

Can't they be mortgaged against income (TV rights) and the stadium? Plus new/different owners may have additional assets to put up as well.

The stadium possibly - but TV rights depend on PL status - which has been looking precarious for a few seasons.

 

[Moderatelywarmwater]

Oh i'm betting if there's an extension we will here about it one way or another. Most likely it will come from a 777 source saying the same thing they always say.

I’m assuming that not extending would be such a huge thing that we’d have heard. Seems the deadline is 5am our time tomorrow

 

[CielosGrises]

In a way its a perfect storm,

1) Interest rates were at an all time low and Covid and Ukraine pushed them up, this caught us with our pants down. This pushed us toward high interest dodgy credit away from institutional lenders.

2) Mohsiri is toxic, his association with Oligarchs, Russia and USM, the murkiness of his private asset wealth and concerns about his personal cashflow mean mainstream lenders dont want to touch him.

3) The business is significantly loss making, with big risks to revenue generation with relegation risk and likely two relegation battles before the stadium opens it doors - no bank wants to take that on.

4) The stadium - loads of people will want to lend to a completed stadium, not many will want to lend to a half built one, especially to a cash hungry owner and club.

5) The uncertainty over ownership, league status and the PSR existential piece currently wont be helping.

The above is moving somewhat in the sense, that is the last set of accounts the stadium was valued as an asset at 400 mill + to the club - really that asset wont be realised until its open and starts generating revenue and we can depreciate, yet it in itself based on value at that point can act as security, thus as i said during the week id be furious if BMD left the clubs ownership.

Agreed.

Especially interest rates going up has meant an investment like a risky football club is much less attractive.

After all, you can probably get 4%+ on your capital just sticking it in a bank at the moment.

From a boring business pov - you'd want far more than 4% in the medium term to make it worth the risk.

Ideally, you'd want a crazy benefactor - which is sort of what Moshiri / Uzmanov were - but now they want paying back.

 

[CielosGrises]

To be honest, I think Bill has left us pretty much in the same situation as he had us in for his tenure - scraping by with huge debts stopping any sort of ambitious spending.

Moshiris plan seems to have been the same - with some hope that short-term capital may get us to Europe.

The stadium gives a long-term direction but in the short to medium - the fans are going to be paying off huge debts to watch a middling team - sound familiar ?

I think I'm moving into the acceptance phase now.

 

[Eggsyblueskin]

Nothing leaking about this at all. I’m assuming this is a good (well in the short term) thing and that a deal has been thrashed out to push the deadline back again

That would be a bad thing since it leaves us leaderless and in limbo for another 2 months while 777 try to find someone stupid enough to help them buy another football club they can’t afford.

 

[Moderatelywarmwater]

That would be a bad thing since it leaves us leaderless and in limbo for another 2 months while 777 try to find someone stupid enough to help them buy another football club they can’t afford.

Less bad though? Hard to tell

 

[Tony’s Carp]

Have 777 defaulted yet?
Will they?
Can a Pyramid be a House of Cards at the same time?

MSP will...can?? Take 51%

Not to defend 777 in general but it won’t be them defaulting it’ll be Everton, and so ultimately still Farhad Moshiri.

It’s become a condition imposed on them but to be fair the loan, the deadline imposed and the somewhat crazy security over shares granted were not their doing.

If they do pay it back they’re clearing up other people’s mess but there’s no obligation on them to do so.

 

[Jeff Jones]

The stadium possibly - but TV rights depend on PL status - which has been looking precarious for a few seasons.

It was about 135million pounds before, so why would it be much different?

 

[pfim]

Less bad though? Hard to tell

The best is probably MSP exercising the option.

Next is probably Moshiri somehow paying the loan off

Third would be 777 is granted more time.

Last is obviously MSP calling the loan due.

Not sure if/when we'll hear anything, remember this information didn't come directly from the club, MSP or 777.

Though to your point if they do call the loan due, it's likely we'll hear about it.

I'm sure the deadline is EOD, so wouldn't expect anything until late or tomorrow, if it comes out.

 

[CielosGrises]

It was about 135million pounds before, so why would it be much different?

I wasn't clear - I mean precarious that Everton will be receiving it every year for the long-term - ie. we may well be relegated and not receive it.