Latest Takeover Rumour. The Moores / Noell one

[davek]

I've been out of the loop here for the past week but it seems likely the (potential) deal is leveraged?

If so I am 100% out.

If BK thinks "they aren't much richer but they know sports better" well it's true but the degree to which they are better at managing sports teams is NOT worth selling the club to attain.

Honestly if they don't have money then he just needs to hire a better, fully empowered, CEO. A CEO he takes as seriously as he did hiring Moyes or Martinez. Then let that person loose. A competent CEO could find MILLIONS extra from a brand like Everton.

If all the new owners might bring is an extra 5m a year for instance I genuinely believe we have that just sitting around waiting to be picked up.

For all the bad things I've said about him, I am still surprised BK would be looking at it if that's the case. Not going to speculate about why he may have changed his tune but the one positive thing I have ever said about him is that he loves the club and I didn't think he'd sell us out.

Anyway not going to get too worked up about speculation about a deal that will never happen but once again 100% out if they are looking to leverage part or all of the acquisition.

I avoid talking about this stuff too much here but I say this as someone who has in previous roles participated in a leveraged buyout of a multi-million dollar company -- we showed up, fired almost everyone, took money they *should* have made themselves and used it to pay them for their own property and now they have nothing (bar a "fair" fee of course). Nobody who does this stuff has any intention bar making a crap load of money off people who weren't utilizing their assets effectively enough. Essentially smart people with no or limited morals show up and take advantage of dumb people -- and there are a LOT of dumb millionaires out there. Way more than you'd think. Almost nobody seems to know how to run a business effectively and a lot of people, even people with tens and hundreds of millions in sales, have wafer thin margins and are one bad year away from getting a call from a vulture. It's horrifying ... I think it's my next career move actually -- it's so damn easy and the money is just insane. Either that or House of Lies consulting. Straight and narrow is for suckers.

EFC definitely doesn't leverage its assets well enough and are therefore a prime candidate here. It doesn't mean the new owners will destroy everything of course (that doesn't make sense) but if they're looking at it through that lens then they are in it ONLY for the money.

If you guys want a billion dollar US equity firm to come in and buy the business I can have three more knocking on Bill's door tomorrow morning but they all want the same exact thing and none of them would be good for us.

I agree. It sounds appalling. But the feeling many get is that expediency wins out.

 

[nil satis]

If and when he sells Kenwright will do whats best for himself, something thats often been repeated on here.

Money talks as far as he is concerned.

Do whats best for himself??? Would you have bought Everton just after Johnson ,its only the fact that we have had good managers in Moyes and Roberto that we are not with Leeds. The next buyers will be totally in it for the money who ever they are.

 

[SerenityNigh]

Andy Murray

Mardy Fish?

 

[TheFinnFan]

Mardy Fish?

Saw a Picture of Andy Murray hitting a baseball wearing Padres jersey. It's on!

 

[SerenityNigh]

Saw a Picture of Andy Murray hitting a baseball wearing Padres jersey. It's on!

It's official then--Mardy Fish and Andy Murray are the previously-unknown participants in Moores-Noell consortium.

WARES THE BOYKO MONEY ANDY?

 

[SerenityNigh]

http://nypost.com/2015/12/28/sylvester-stallone-lists-his-california-villa-for-4-19m/

San Diego is in California, right? I reckon Sly is part of this. Know it makes no sense based on the link but googling his name with San Diego is interesting.

Creed has already made $120M or so. Stallone is one of 7 producers; not sure he gets an equal cut, but he'll easily make $10-20M off this film in its first year.

 

[SerenityNigh]

No one will bother reading this anyway, but it's cathartic to write.
Can't open the Nicosia link, so going off moutsgoats precis, but if they are making the big revelation that Goodison and gate receipts are spun out GPSL/EIL which is very difficult to break down, God help us, it happened 13+ yeats ago!!!
GPSL/EIL is a structure required to facilitate the AIB loan which sidestepped the possibility of mortgaging the player registrations which is prohibited by EPL rules.
Neither of these companies is a separate holding company, they are 100% owned by EFCL and are part of the group.
There is no seperate company for television rights - all income except gate receipts for home matches goes to EFCL, home matches to GPSL.
If you got the largest 6 shareholders to sell, you would have 84+%
Only thing they got correct is that it is difficult to find break dates assuming they mean AIB loan, because without seeing the loan document you wouldn't know what the redemption penalties are and if their are specific break clauses.
Don't know where the debt figure came from but the latest borrowings figures in the public domain are in the 2015 accounts and are c39 mil.
And breathe.

Not an expert in business/tax law, much less what happens in England, but assuming the new ownership is a holding company that owns the existing structures, etc., no need to pay off any debt (unless required by the specific instrument/agreement) because none of the entities specifically involved will change. Is that not right?

Regard debt, if I'm buying the club I wouldn't be the smallest bit concerned about £50M in debt faced against the incoming tidal wave of TV money, so long as the finances don't suggest the debt is required to increase because the financial structure is unsustainable.

 

[Moomin]

I hope one of the people in the consortium is George Lucas and the new main stand will be built in the style of millennium Falcon.

 

[TheFinnFan]

It's official then--Mardy Fish and Andy Murray are the previously-unknown participants in Moores-Noell consortium.

WARES THE BOYKO MONEY ANDY?

YES WHERES BOYKO MONEY ANDY! !!!!

 

[hibbo'sclass]

Not an expert in business/tax law, much less what happens in England, but assuming the new ownership is a holding company that owns the existing structures, etc., no need to pay off any debt (unless required by the specific instrument/agreement) because none of the entities specifically involved will change. Is that not right?

Regard debt, if I'm buying the club I wouldn't be the smallest bit concerned about £50M in debt faced against the incoming tidal wave of TV money, so long as the finances don't suggest the debt is required to increase because the financial structure is unsustainable.

Fly in the ointment is AIB loan of c£20 mil. This effectively means that GP is mortgaged and there is a charge against gate receipts, so would have to be paid off certainly if a ground move or renovation were attempted using external debt.
The JG Funding loan which replaced Vibrac theoretically under the current owners could be repaid when the new TV deal kicks in. It is secured against EPL money from Sky, the guaranteed bit.

 

[SerenityNigh]

Fly in the ointment is AIB loan of c£20 mil. This effectively means that GP is mortgaged and there is a charge against gate receipts, so would have to be paid off certainly if a ground move or renovation were attempted using external debt.
The JG Funding loan which replaced Vibrac theoretically under the current owners could be repaid when the new TV deal kicks in. It is secured against EPL money from Sky, the guaranteed bit.

Still not sure the Green money was ever drawn, but I guess those are details we'll learn soon enough

 

[hibbo'sclass]

Still not sure the Green money was ever drawn, but I guess those are details we'll learn soon enough

Not sure what money you'te talking about. The only borrowings noted and appearing in the accounts seem to be various banks, Vibrac and the aforementioned AIB which is noted as Prudential Trustees.

 

[Chang Elephant]

Just hope Bill gets a good payoff out of this deal. The future of the club is secondary.

 

[The Esk]

Not an expert in business/tax law, much less what happens in England, but assuming the new ownership is a holding company that owns the existing structures, etc., no need to pay off any debt (unless required by the specific instrument/agreement) because none of the entities specifically involved will change. Is that not right?

Regard debt, if I'm buying the club I wouldn't be the smallest bit concerned about £50M in debt faced against the incoming tidal wave of TV money, so long as the finances don't suggest the debt is required to increase because the financial structure is unsustainable.

Fly in the ointment is AIB loan of c£20 mil. This effectively means that GP is mortgaged and there is a charge against gate receipts, so would have to be paid off certainly if a ground move or renovation were attempted using external debt.
The JG Funding loan which replaced Vibrac theoretically under the current owners could be repaid when the new TV deal kicks in. It is secured against EPL money from Sky, the guaranteed bit.

I'm pretty sure any new owner will want to settle existing debts at the time of acquisition - not only is secured debt (AIB/Prudential Trustees) secured against Goodison but there are covenants attached which might not suit any new owner.

The JG Funding loan would almost certainly be repaid immediately for the simple reason that as things stand JG Funding receive the broadcasting revenues directly and forward the net receipts to Everton after deducting the loan amount, interest and other charges.

In addition I'm assuming that any new owner would have superior funding and credit facilities than Everton have/had have and could borrow cheaper if borrowing was required (although hopefully not). For example Fenway Group have lent Liverpool £115 million at 0 %.

 

[hibbo'sclass]

I'm pretty sure any new owner will want to settle existing debts at the time of acquisition - not only is secured debt (AIB/Prudential Trustees) secured against Goodison but there are covenants attached which might not suit any new owner.

The JG Funding loan would almost certainly be repaid immediately for the simple reason that as things stand JG Funding receive the broadcasting revenues directly and forward the net receipts to Everton after deducting the loan amount, interest and other charges.

In addition I'm assuming that any new owner would have superior funding and credit facilities than Everton have/had have and could borrow cheaper if borrowing was required (although hopefully not). For example Fenway Group have lent Liverpool £115 million at 0 %.

Yep, agree with the AIB loan, believe that some time ago when you and I raised and spent 50mil between a couple of posts that was a target.
JG being repaid prior to maturity I am not so sure about as I imagine it would be structured as a term loan with full interest chargeable up front, so no real point in early repayment, but I may be wrong. Also if the money available were put into thr Cimpany's account it gets rid of overdraft interest.

FSG loan to LFC - not really looked into it, but did I hear somewhere that it is repayable in 5 years?