Front page article - The Harsh Reality

[degsy]

If it is that bad then the stadium goes on hold to keep the club going
Because...
If there's no club - there's no use for a stadium

 

[pfim]

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.

You have to know the terms of the deal. A real bank is not going to finance 100% of the construction cost, you may get 50-60%. There are also more stringent rules to follow.

 

[chicoazul]

I am very disappointed with the behavior of fans residing in the city of Liverpool. Our current situation is calamitous, and we who are TOFFEES and spread across the world cannot help. My criticism is that the demonstrations against Farah and Bill are very soft, weak and inefficient. Due to the seriousness of the situation, demonstrations must take place every day... Friends, let's mobilize with more force. Hugs from Brazil.

Hello buddy thanks for speaking your truth. Can you give us a bit more detail about the behaviour of Everton fans from the city of Liverpool please. Spare no detail.

 

[Sussex]

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

Fair point actually on the pre covid thing. The 4% over the whole deal is the thing that troubles me because it seems we have been borrowing (and still need to borrow) for the build. Not to advocate it though, if you know your money is "hookey", you cleanse it. Borrow the money through legit sources and pay back with your dirty money via Everton.

 

[Bedfordblue]

Does mean we can’t afford to play our savior Dele Alli?

 

[Exeter_Gently]

Unreal if true.

Just one awful decision after another.

 

[pfim]

Fair point actually on the pre covid thing. The 4% over the whole deal is the thing that troubles me because it seems we have been borrowing (and still need to borrow) for the build. Not to advocate it though, if you know your money is "hookey", you cleanse it. Borrow the money through legit sources and pay back with your dirty money via Everton.

I really doubt it's a "whole deal" financing package. Real banks don't provide that. I'm sure they were offered financing at 4% but it would have been at 50-60% funding.

 

[The binman chronicles]

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.

OK we'll gloss over any differences but whatever it still a hack piece. By including the stadium build money in the calc and stating we need 1 million a day to stay a float it indicates in 30 days someone has to lend us another 20 or so million else we are doomed and so on. Which is wholly unsustainable.

If I don't need to pay my builders for an extension until Jan 1st but I know I'm selling something to cover that, I'm not thinking I need the total of build + all my other expenses divided by the 102 days or I'm screwed. We just need what we need until we are taken over who will then have to pay those future lump sums.

 

[MikeH72]

Because it’s complete guesswork and there is no evidence to back it up. Once all the facts are known it may turn out to be correct but right now I don’t think pieces like this help anybody

Except you’ve just declared it ill-informed rubbish without any evidence yourself so what has informed you that this is the case?

 

[Sussex]

I really doubt it's a "whole deal" financing package. Real banks don't provide that. I'm sure they were offered financing at 4% but it would have been at 50-60% funding.

Could be true. Surely though you get the WHOLE finance package (be it in loans from banks, investment (owner and outside), revenue from club) done before you start the project. To even put a spade in the ground without having the finance sorted has lead us to here today with the stadium ongoing cost / cash flow dragging us into the administration gutter.

 

[blueblueskies]

Except you’ve just declared it ill-informed rubbish without any evidence yourself so what has informed you that this is the case?

The article has no basis of evidence based fact in it at all nor does it claim to be based on inside knowledge so it’s a fair assumption to call it ill informed.

 

[The binman chronicles]

I really doubt it's a "whole deal" financing package. Real banks don't provide that. I'm sure they were offered financing at 4% but it would have been at 50-60% funding.

You wouldn't really take out a loan until you have to either which assumes at least some of the build had been interest free or at a lower percentage than 4.

 

[neil999]

Billy crellin just signed a new contract,,everything is fine lol

 

[Neiler]

OK we'll gloss over any differences but whatever it still a hack piece. By including the stadium build money in the calc and stating we need 1 million a day to stay a float it indicates in 30 days someone has to lend us another 20 or so million else we are doomed and so on. Which is wholly unsustainable.

If I don't need to pay my builders for an extension until Jan 1st but I know I'm selling something to cover that, I'm not thinking I need the total of build + all my other expenses divided by the 102 days or I'm screwed. We just need what we need until we are taken over who will then have to pay those future lump sums.

The difference is between 12 and 15 months mate - the stadium handover is in 15 months.

I take your point, its an anonymous piece - anyone could have wrote, they also dont show their workings, but when i break it down i dont think the figures are wildly out. though they prob to degree and an approximation. Point being i dont think the sums being said are all that wild to reality at all.

As far as i know we pay LOR monthly and also our wage bill.......i think the overall concern is we aren't making the money to meet that out going at the moment, so we are relying on external funding that either investment or debt and you are right - is that sustainable.....

 

[Streetender1878]

It does say its an opinion piece.