Install the app
How to install the app on iOS

Follow along with the video below to see how to install our site as a web app on your home screen.

Note: This feature may not be available in some browsers.

 

Front page article - The Harsh Reality

Status
Not open for further replies.
We've speculated in the past few days on this, with a few of us highlighting the red flags appearing almost daily before our eyes. Im still in disbelief in a way buy the evidence is becoming crystallised.

Perhaps a slim hope, i might suggest is if Moshiri dropped his price, gave the club away it would drum interest and investment.
Apparently that's what he is doing. It sounds like there's no immediate payment but payments depending on the outcome of the PL investigation, staying up and completion of the stadium.
 
Sorry for daft question but re the above, are Administration and Bankruptcy the same thing?

And do they both remove all debt from the club, meaning we would be debt free in the Championship next year, albeit probably not allowed to make transfers?

Cos that all sounds less harrowing by the day, especially if it meant the end of Bill and Farhad.

Administration is a period of legal protection from creditors, essentially they are unable to get us declared bankrupt (and force our liquidation) whilst we are in administration and external experts (administrators) are brought in to temporarily run the business, determine whether they can get it trading sustainably and repay an acceptable amount to creditors and then sell the business as a going concern.

In some circumstances it can result in a reduction in total debt. Doesn't seem likely in our case.

Mostly, as with Wilko, it is a precursor to the end of all things.
 
£250 mill for the future ground costs, + the wage bill, + interest costs 10-15% on £300 mill of external debt on our existing loans, its very possible mate.

If you include the extra to complete the ground then the figure would be much higher, so I'm thinking they are talking about day to day costs and interest servicing the loans.

Remember we pay for the stadium in advance so technically worst comes to worst we pause the build and it stops becoming an issue bar from the interest we are paying out on the part we've already funded on klarna.
 

Apparently that's what he is doing. It sounds like there's no immediate payment but payments depending on the outcome of the PL investigation, staying up and completion of the stadium.

We've seen in the past clubs changing hands like Leeds for a £1 pound. For that the buyer gets a distressed asset with debts that needs to be managed and saved - Moshiri could do that - but hes looking for the highest return for himself. 777 are trying to get in before that punch in my opinion as if administration were to happen we would be infinitely more attractive to investment from others and their would be more competition as wed be worthless.

If he dropped his price now we suddenly would have a lot more interest and possibility of investment, its his hope of a return that might drive us into administration. We've seen before he is willing to chase his losses toward ruination.
 
Last edited:
Ukraine war did for us.

"Events, dear boy, events"

We"ll end up renting BMD or playing home games at Bolton.

The latter day Coventry City FC.
 
If you include the extra to complete the ground then the figure would be much higher, so I'm thinking they are talking about day to day costs and interest servicing the loans.

Remember we pay for the stadium in advance so technically worst comes to worst we pause the build and it stops becoming an issue bar from the interest we are paying out on the part we've already funded on klarna.

No mate, they are including the payment schedule for the stadium as well. It all comes from the same source - or rather doesn't.
 
We've speculated in the past few days on this, with a few of us highlighting the red flags appearing almost daily before our eyes. Im still in disbelief in a way but the evidence is becoming crystallised.

Perhaps a slim hope, i might suggest is if Moshiri dropped his price, gave the club away it would drum interest and investment.
Right, that's the only way out. If Moshiri takes less, and the remaining money (from a more qualified buyer) goes to paying off debt, nice things happen. One is that the more creditworthy borrower, with access to the UK banking system, can finance the rest of the stadium at a more attractive rate. The loan would also be better collateralized, which would help with the interest rate problem. The other would be that we would simply have less debt.

Any sale that does not result in Moshiri fully realizing his losses resulting from the fiscal mismanagement of the club will destroy the club. He is the only one that wins, if he receives an above-market price for his shares. The buyer and the club both lose.
 

We've seen in the past clubs changing hands like Leeds for a £1 pound. For that the buyer gets a distressed asset with dent that needs to be managed and saved - Moshiri could do that - but hes looking for the highest return for himself. 777 are trying to get in before that punch in my opinion as if were to happen we would be infinitely more attractive to investment.

If he dropped his we suddenly would have a lot more interest and possibility of investment, its his hope of a return that might drive us into administration. We've seen before he is willing to chase his losses toward ruination.
I agree.
In the long run administration ( although catastrophic in terms of relegation) could be the best long term solution to acquiring stable and responsible future owners.
 
Right, that's the only way out of the box. If Moshiri takes less, and the remaining money (from a more qualified buyer) goes to paying off debt, nice things happen. One is that the more creditworthy borrower, with access to the UK banking system, can finance the rest of the stadium at a more attractive rate. The loan would also be better collateralized, which would help with the interest rate problem. The other would be that we would simply have less debt.

The long and the short of it is that any sale which does not result in Moshiri fully realizing his losses resulting from the fiscal mismanagement of the club will destroy the club. He is the only one that wins, if he receives an above-market price for his shares. The buyer and the club both lose.

Its the only way i can see mate. Then roll up and restructure the rest of the debt into one - or when interest rates come down.

He seems determined to go down with the ship.
 
Without serious investment and improvement in cash flow, administration is a very real threat

I'm not saying it isn't. I'm saying it would go from a very real threat to an almost instantaneous reality if we needed one million per day.

If you say we need normal costs plus the interest burden for x months and in 6 months we need the remainder of 182 - the monthly costs already paid then that might be something I could believe. As it makes us assume we can run up to the point and get a sale and so on. No one is taking on a business where we use twice as much as we earn, so no one would be lending us more money as it stands. Seeing they have the business cannot be in quite as precarious state as the writer of the article states.
 
No one wants to admit this because it's a sacred cow, but that new stadium has killed us.

Still, I've been hearing stories of Everton's imminent decline since before Johnson was ousted and we're still here. I'm not for a second doubting how much trouble we're in but for Everton to be allowed to go into administration would be about the last thing a lot of people who have control or want control would want to happen.

Fans like us need to stop worrying ourselves sick and multiple threads of this nature (apologies to Andy and his anonymous contributor) don't do us any favours.

What's that saying again...


......grant me the serenity to accept the things I cannot change, Courage to change the things I can, and Wisdom to know the difference.
 

Status
Not open for further replies.

Welcome to GrandOldTeam

Get involved. Registration is simple and free.

Back
Top