Front page article - The Harsh Reality

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jazzy said:
Isn't it signed ....." Love The Esk " ?
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Well I think Andy confirmed it wasn’t The Esk but that’s the thing.
If I saw a transfer reported by ‘someone with a background on GOT’ I wouldn’t know whether to trust it because it could be anyone from Esk to Jinkyali to Tofeenut to Toffeenut74!
Having a background in finance isn’t a qualification to talk on this subject, I certainly wouldn’t pretend to know where to get the data and pertinent factors required to make an assessment and I’ve got over a decade of experience ‘in finance’
 
There's operating the club and then there's funding the stadium.

The club has ongoing cash needs, those need to be funded before the stadium.

If 777 actually has the funding lined up and can close, the sooner the better obviously.

If the deal drags on, you could see another bridge loan to get it over the finish line.

If they can't close the deal, then construction likely stops until a new bidder is found, through normal channels or through admin.

The "good" news is that Moshiri isn't giving the club away for a pound just yet. That means he's confident funding is in place to get them to the next steps and he can recoup some of his capital.
 
Lob said:
People fixated with having a go at The Esk when it doesn't matter who wrote it or whether the figures are accurate. It is plain to see that the business i.e club has been failing catastrophically for quite some time and is currently showing all of the signs of being very close to going into administration. Every single aspect of it is in disarray.
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It does matter though, anyone could claim we need 300 million by the next Friday else we're going bust just for the fun of the panic and clicks provided by the bait, as the club aren't controlling the narrative it is allowing people to make up what they want. Until the club come out with something we can only guess what state we are in. Yes it's clear we aren't in the best shape as we needed the cash flow injection but that could also be far from about to go into administration. 777 have presumably seen the books to be able to agree a price and if they saw the horrors that are been given out here why would they have agreed to buy us and why loan us 1 million nevermind tens of millions.

Everyone who got there before them would be in queue to be paid first so there would be a huge risk that they wouldn't see much back. So again imho the evidence points to us being in trouble but not bankruptcy now.

That said if 777 don't buy us and no one else steps up to the plate as a super quick replacement then it would definitely appear to be administration for us.

Neiler said:
Exactly mate, 1 mill a day at 365 days in a year = £365 mill a year.
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But that's what I'm saying it would be worse than that then you get to the we've borrowed another 100 million in the first 100 days and the interest on top of that and you can see how it would just grow out of hand from there.

We know we are in trouble but as above the narratives run wild, perhaps this loan is just the difference between what MSP were supposed to lend us - 100 million opposed to the 150.
 
  1. In order to balance the books Everton need an approximate additional £1m cash each and every day during at least the rest of the current season.
That is an extremely bold claim to make without disclosing workings, or any assumptions, or even just a breakdown of the figures publicly available in the most recent financial accounts. No one should be taking this article seriously without disclosure of those workings. :coffee:

neil999 said:
So 777 have given has a 20 mill loan which apparently will only cover us for 3 weeks,but takeover could take months...so what's the point in the 20 mill loan?
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Because, presumably, Everton don't actually need approximately an additional £1M cash each and every day and there's something dodgy with the maths. I'm sure it's not malicious in nature - I'm just saying what I think is the logical conclusion.
 

There has been some rubbish written about our situation but this is up there with the worst of it.

I’m not saying we are in a good place. Anything but. However ill informed scaremongering pieces like this do not help one bit.
 
The binman chronicles said:
It does matter though, anyone could claim we need 300 million by the next Friday else we're going bust just for the fun of the panic and clicks provided by the bait, as the club aren't controlling the narrative it is allowing people to make up what they want. Until the club come out with something we can only guess what state we are in. Yes it's clear we aren't in the best shape as we needed the cash flow injection but that could also be far from about to go into administration. 777 have presumably seen the books to be able to agree a price and if they saw the horrors that are been given out here why would they have agreed to buy us and why loan us 1 million nevermind tens of millions.

Everyone who got there before them would be in queue to be paid first so there would be a huge risk that they wouldn't see much back. So again imho the evidence points to us being in trouble but not bankruptcy now.

That said if 777 don't buy us and no one else steps up to the plate as a super quick replacement then it would definitely appear to be administration for us.



But that's what I'm saying it would be worse than that then you get to the we've borrowed another 100 million in the first 100 days and the interest on top of that and you can see how it would just grow out of hand from there.

We know we are in trouble but as above the narratives run wild, perhaps this loan is just the difference between what MSP were supposed to lend us - 100 million opposed to the 150.
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I dont think the figures are wide off at all, the wage bill will be between 120 - 160 mill conservatively, interest payments, on external of £300 mill, 30-50 mill and additional stadium financing required 250 mill - you can easily see how the club could need £365 mill a year to run. I dont think a million a day in that context is out there at all - though its prob broke down into that unit for shock, we have 15 months of stadium payments to make, keeping in mind - so it will be more £365 mill is conservative.
 

Hmm, if true and we turned down that 4% fixed interest for the stadium then we (Moshi, kenwright and their cats) are idiots.

The way this is going, I can see another Coventry type situation but with higher numbers involved. We are going to end up renting that stadium for huge amounts of money.
 
Sussex said:
Hmm, if true and we turned down that 4% fixed interest for the stadium then we (Moshi, kenwright and their cats) are idiots.

The way this is going, I can see another Coventry type situation but with higher numbers involved. We are going to end up renting that stadium for huge amounts of money.
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Hindsight is a beautiful thing - this is pre-covid remember (aka its before interest rates went absolutely crazy after near three decades of global policy to keep interest rates low). It's also pre-sanction of Usmanov, so Moshiri will have been able to lean on dealings with USM to finance huge chunks of the stadium build.

There's plenty of idiotic things happening at board level at Everton - a little bit unfair to say knocking back that 4% fixed interest is one of them
 
Sussex said:
Hmm, if true and we turned down that 4% fixed interest for the stadium then we (Moshi, kenwright and their cats) are idiots.

The way this is going, I can see another Coventry type situation but with higher numbers involved. We are going to end up renting that stadium for huge amounts of money.
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Rent to who? (Not that I think it's going to happen in any case).
 
Tilling said:
  1. In order to balance the books Everton need an approximate additional £1m cash each and every day during at least the rest of the current season.
That is an extremely bold claim to make without disclosing workings, or any assumptions, or even just a breakdown of the figures publicly available in the most recent financial accounts. No one should be taking this article seriously without disclosure of those workings. :coffee:



Because, presumably, Everton don't actually need approximately an additional £1M cash each and every day and there's something dodgy with the maths. I'm sure it's not malicious in nature - I'm just saying what I think is the logical conclusion.
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Exactly, and it says £1 million 'additional cash' meaning above and beyond whatever is spent on a daily basis in the normal course of business, i. e. an extra LOSS of £1 million a day (!).

I don't believe that figure and certainly not without proof.
 

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