kithnou
Player Valuation: £70m
Risk for whom exactly should this occur? Does the Council not then help us out with the payments?
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CrustySack
Player Valuation: £0.99p
No they don't. If Everton default on payment then the council will be responsible for the repayments. If that happens then the council will be able to effectively sell off Everton assets to recoup the money.
The binman chronicles
Player Valuation: £80m
Technically they get first dibs on the repayment money before any other outgoings, so if we can't pull together 14-17 million, we dead.
No chance that happening though. We may run up some extra debt while offloading players contracts, getting cheaper replacements from the lower leagues but if you do the math Everton will always be able to pull in that kind of money. Just think of the response in ticket sales if we were about to go to the wall??
No way our income drops below 70 million so can people please stop worrying about the stadium.
kithnou
Player Valuation: £70m
They'll have first dibs on season ticket sales and other payments we receive. I don't see it being a big concern repaying 15-20m per season.
That will be chicken feed in a decade or two I believe.
kithnou
Player Valuation: £70m
CrustySack
Player Valuation: £0.99p
The risk is extremely minimal, yes.
So we were paying £8m a year on interest on loans until Moshiri paid those loans off via an interest free loan to the club?
And some people are worrying about having to find an extra £10-£12m a season on top of this (to pay off a stadium we'd eventually own) via extra ticket sales, naming rights etc and in a day and age where TV revenues are going through the roof?
I'm not the brightest but I don't see the concern. I'd be more worried about the high % of turnover we (and other clubs) spend on wages before I'd be worrying over this deal.
And some people are worrying about having to find an extra £10-£12m a season on top of this (to pay off a stadium we'd eventually own) via extra ticket sales, naming rights etc and in a day and age where TV revenues are going through the roof?
I'm not the brightest but I don't see the concern. I'd be more worried about the high % of turnover we (and other clubs) spend on wages before I'd be worrying over this deal.
madkiwi
Koffee please
Let's plug in a few figures to get a ball park idea on how this would all work. LCC being asset rich are able to borrow at a lower rate (has been said to be half) what a business could borrow at.
Let's say that's 2% versus 4% (seems about right from some quick searching). Let's also say the stadium costs £350,000,000. What does this mean over a 40 year loan?
At 2% you're repaying £12,700,000 annually. At 4% you're repaying £17,600,000 annually. That's a savings of £4,900,000 by borrowing through LCC. You're actually still making money on the deal after giving LCC their £4,000,000 fee.
Just on that basis alone this seems like a no-brainer to me, and there are also many other benefits in financing this way.
Let's say that's 2% versus 4% (seems about right from some quick searching). Let's also say the stadium costs £350,000,000. What does this mean over a 40 year loan?
At 2% you're repaying £12,700,000 annually. At 4% you're repaying £17,600,000 annually. That's a savings of £4,900,000 by borrowing through LCC. You're actually still making money on the deal after giving LCC their £4,000,000 fee.
Just on that basis alone this seems like a no-brainer to me, and there are also many other benefits in financing this way.
Frank Gallagher
Player Valuation: £50m
Lcc may awell get the interest profit on the loan. rather than a bank or big corporation.
Its win win for all concerned.
im an impatient bugger at the best of times.. but waiting for stadium designs or concepts is killin me already. i honestly think its going to spectacular and unlike anything before it
Two questions for anyone moaning about LCC:
1. Did you get a mortgage when you bought your house? Was it a 30 year loan?
2. In the unlikely event that Everton couldn't pay the loan, how incentivized do you think LCC would be to ensure Everton remained solvent considering the clubs impact to the local economy?
1. Did you get a mortgage when you bought your house? Was it a 30 year loan?
2. In the unlikely event that Everton couldn't pay the loan, how incentivized do you think LCC would be to ensure Everton remained solvent considering the clubs impact to the local economy?
MrGrumpy
Player Valuation: £50m
We will always have about 40k season ticket holder and if they all paid £300 even in the championship that's 12mil right there.
chazzle_dazzle
Player Valuation: £35m
Cant be bothered quoting a load of posts... but, what is the interest saving we are making every year thanks to Moshiri's "loan" or whatever we call it.
The fact there is no repayment terms or interest to be paid should be good enough!
The fact there is no repayment terms or interest to be paid should be good enough!
brettangellnightporter
Player Valuation: £1.5m
Mentally insane is not an illness. Its an end point diagnosis.
a bell maul
Player Valuation: £30m
Asset values will never go down. Central Banks guarantee return. Leverage every dollar you have at a minimum of 10 to 1 and your grandchildren will be part of the gilded class.
This 'buy any dip' mantra will serve you well.
This 'buy any dip' mantra will serve you well.