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Farhad Moshiri

7+ Years On... Your Verdict On Farhad Moshiri

  • Pleased

    Votes: 107 7.7%
  • Disappointed

    Votes: 1,290 92.3%

  • Total voters
    1,397

While he might be doing good things behind the scenes, this summer has been a disaster for the fans, make no doubt about it. Now it appears our first major story in the transfer window - with less than 20 days until the first game - will be selling one of our main assets. Nightmare. Things need to start happening and fast.
 

Think we have to remember that it is Blue Heaven Holdings that owns 49.9% of Everton with the rights to acquire just over 75% through the options agreement. What's the significance of this?

The significance is that it is BHH that is the funding vehicle for Everton, and as such can raise large amounts of capital privately for use within the club. Most of the investment and provision of capital will occur of course, when BHH has a controlling interest above 75% - believed to be later this summer.

But let's explore for a minute what BHH can theoretically provide. Firstly Moshiri can pump in (with an educated guess) at least the amount he received for his R&W Holdings - £200 million. He's already spent £80 million on acquiring his current holdings, and he's put money into the club just over a month ago

In addition, BHH will be able to borrow significant sums of money against its assets (Cash and Everton FC) and other assets owned by Moshiri. How much? With the provision of guarantees and liens against other assets £250 million would not be an issue.

Additionally if required, Moshiri could sell stakes in BHH to other equity investors. He can do this without notifying the PL or any other body as long as the investor does not indirectly hold more than 9.9% of Everton through their BHH holdings or is already a significant investor in another PL club. He could in theory sell 49% of BHH to other investors which would raise depending upon the asset value of BHH at the time significantly more than £100 million - in fact up to £200 million would be possible.

Now I'm not saying all of these things will happen. I'm saying you need to look beyond the wealth of the individual and understand his ability to raise money and structure deals, all of which could raise £4-500 million quite easily if required.

That's the nature of what we have here. That ability to raise capital, and in the future generate significant cashflow from activities demonstrates how we can actually go (within the confines of STCC and P&S rules), head to head with almost any club in the country.
 

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