Farhad Moshiri

[roydo]

Spot on this post.

I'd wager Moshiri could have sold his shares in Arsenal to Usmanov, taken it somewhere else and made roughly 20% a year, year in, year out, doubling his cash every four years. The chances of him beating that sort of return over the next five to ten years at Everton are fairly low.

Well, unless his purchase, ish, of Everton is the key to another stream of profit...........just saying.

 

[thebluenosebolt]

Any man that puts in £300 million on bad purchases says to me he is a man willing to back managers regardless...isnt this what we always wanted....
This is meant for a certain poster.....who is generally respected, Often agreed with but also sometimes full of stank.

 

[Market trader]

Who said that?

Not a chance any other shareholder would pay a bean to the stadium because they all have a pre agreed price to sell to Moshiri when he pulls the Buy trigger.

Are you sure? I do not see how there could be an agreement to sell at a fixed price with the rest of shareholders. Surely, it's only the board?

 

[roydo]

Everton had £80M of debt when Moshiri came in, with little by way of assets. The club was valued at £175M. We found our buyer then and in a much worse state than we'd be if a stadium is built on the docks.

Sorry mate, dont follow that at all.

How is £80m debt worse than £600m in debt?

 

[davek]

Its not. Its a repeated model for dock/brown field development all over the planet. I feel like a busted record, but take a peek at any shopping centre development. Every single one will have a "Big Name" first user tenant, a Lewises, Marks, whatever. It attracts the footfall, and the finance, for the smaller units to be filled.

Same with distribution sites. They have an Amazon/Tesco/Asda type to get the local authority excited and hence support.

Dock development in Liverpool? How about a football stadium Joe?

Not a bad idea that.

It might be a model that happens elsewhere, but the burden on you is to nail some sort of firm connection between Everton's owner and the opening up of this wider development.

What is it? He has a floor at the Liver Buildings - ergo he's got his nose in the trough of the rest of the north Liverpool dockland development? That's deduction. Nothing firmer than that.

 

[roydo]

Are you sure? I do not see how there could be an agreement to sell at a fixed price with the rest of shareholders. Surely, it's only the board?

Its the rules mate. There is a pre agreed price for him buy Bill, Woods et al, then the other shareholders have to sell at the same price. The technical term is to avoid dilution. Meaning that shareholders who have put nowt in, dont benefit from Moshiri doing just that.

 

[GwladysBlue]

They didn't have Lukaku and Stones.

But we’ve still spent more if you go by the netspend angle, too.

So I ask again, why haven’t 17 clubs spent more than us?

 

[deipnosophist]

We have upped our top earner wages from the 75k to 150k (& now have lots of them) this enables us to offer better deals than a lot of clubs but funny enough they get about the same income as us... I wonder where the extra money is coming from, or are they withholding? In both cases we are better off.



We wouldn't be bankrupted as it will be long term debt and affordable, however Dave's point that someone comes in and then buys Moshiri's shares is blown out the water as no one is going to give Moshiri 300M + (and even then that wouldn't be much of a profit) when there is 600M to be paid by the club. They would have to buy with their own money as no bank is going to give them a loan based on the assets, as they are already secured against charge 1.

So in fact the debt makes us less likely be ripe for a leveraged buyout keeping us away from would be wolves.

hmmm...our operating income last year (pre player amortisation) was 25 mio.
Add 600 mio debt at 7% ....42 mio/yr

Trouble at mill

 

[Woolly Blue]

Well, unless his purchase, ish, of Everton is the key to another stream of profit...........just saying.

To be honest, if Moshiri / Usmanov want a slice of the docks, and I'm sure they'd be interested, they wouldn't need Moshiri to buy a football club to get a toe in the door. Equally, although buying Everton and getting BM built would help oil the wheels somewhat, and would be a catalyst for moving into the docks redevelopment, there are plenty of other places in the world which are being redeveloped, without the need to take on board a relatively risky investment that a footie club is.

I think the two things are intertwined, but Moshiri buying Everton was as much about him indulging himself with a new toy as it was leveraging a way into the redevelopment. For him, the redevelopment will be a very nice bonus, but I don't think it's the primary reason for him splashing the cash on his shares.

 

[roydo]

It might be a model that happens elsewhere, but the burden on you is to nail some sort of firm connection between Everton's owner and the opening up of this wider development.

What is it? He has a floor at the Liver Buildings - ergo he's got his nose in the trough of the rest of the north Liverpool dockland development? That's deduction. Nothing firmer than that.

Well, its not. I have said from the get go its my opinion, based on my experience in the property world. I have ended many posts with "might be miles off".

But I would be astonished if my narrative is actually "miles off"

And he doesnt have a floor. He with, a global multi billion pound property concern own the flaming place. You make it sound like he has rented a Regus office in Sough.

Why?

 

[davek]

Sorry mate, dont follow that at all.

How is £80m debt worse than £600m in debt?

It's not. I'm making the point that we were a less than attractive proposition when Moshiri stepped forward and were still sold. Newcastle are a basket case and they'll be sold. If the club are in the future are saddled with debt we'll get our buyer again because the industry right now is the one to be in. To see things any other way for you means that you believe that Moshiri sees the passing of such debt onto the club is a means to get his hands on cash elsewhere in the north dockland development and that Everton will be used instrumentally and placed in a critical situation if Moshiri for some reason vacates the scene.

 

[PeregrineT]

That £300M is from player sales + tv cash (£50M more per annum than when he arrived here).

Ah, so then your comment about us imploding, having spent SO MUCH MONEY actually is meaningless because you say we havent actually spent much. But thats about par for the made-up course.

 

[roydo]

To be honest, if Moshiri / Usmanov want a slice of the docks, and I'm sure they'd be interested, they wouldn't need Moshiri to buy a football club to get a toe in the door.

Fair point. Unless the two, docks/ground were co dependent. Time will tell, but the timings and everything mean I am unconvinced they are unconnected.

 

[davek]

Well, its not. I have said from the get go its my opinion, based on my experience in the property world. I have ended many posts with "might be miles off".

But I would be astonished if my narrative is actually "miles off"

And he doesnt have a floor. He with, a global multi billion pound property concern own the flaming place. You make it sound like he has rented a Regus office in Sough.

Why?

Whats more likely to happen, a man involved in football club ownership seeking to profit from that; or a man involved in ownership of a football club who's using it to crack open another business opportunity?

I can see clearly the case for the former, but it's a stretch to see the latter at this stage - unless you have something firmer to offer by way of Moishiri's future plans. It all seems based on the premise that "Usmanov will want some of this action". This is the Usmanov under massive scrutiny, btw.

He's in this for that stadium build and a sale in the back of it. IMO.

 

[davek]

But we’ve still spent more if you go by the netspend angle, too.

So I ask again, why haven’t 17 clubs spent more than us?

Of course we have, prices have shot up.