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Latest Takeover Rumour. The Moores / Noell one

Are you For or Against the idea of the possible Moores / Noell takeover ?

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The Esk said:
Good post mate.

There's definitely an investment case for a new stadium and also one for a redeveloped Goodison, particularly when there are significant capacity and revenue constraints on the existing asset. Admittedly the initial return on capital is fairly low, but as you yourself point out it can significantly increase the asset value of the club.

Previously I have shown that a stadium with capacity of 50,000 including around 4000 executive seats could at capacity increase existing revenues from less than £20 million to £35/38 million without eye watering increases in ordinary or concession seating. If you add in the reduced running costs of a new stadium then you begin to see an acceptable return on say investment of upto £250 million.
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Thank you very much

So (humour my ignorance a little) if we're keeping the figures basic and simple under the assumption that as a minimum we will double annual revenue from matchday activities to the tune of an extra 20 million a year. Long term in terms of running costs it clearly makes financial sense and I guess as custodians of the club (and potential hard nosed investors) they have to think in this way.

From a fan perspective though does this give us a route to success even in the near future? Would fans take potentially quite a few years of pain (presuming the owners don't have a spare 250 mill capital) for a more profitable 'business' in the future? A profit that relatively may not even he felt (again very rudimentary but would the 20 mill make a difference if all clubs have 100 mill plus transfer budgets from increased TV and sponsor ship deals? Bearing in mind that lots of these sides have new stadia already yet we've not always seen this advantage over us translated into 'success').
 

Saint Domingo said:
Thank you very much

So (humour my ignorance a little) if we're keeping the figures basic and simple under the assumption that as a minimum we will double annual revenue from matchday activities to the tune of an extra 20 million a year. Long term in terms of running costs it clearly makes financial sense and I guess as custodians of the club (and potential hard nosed investors) they have to think in this way.

From a fan perspective though does this give us a route to success even in the near future? Would fans take potentially quite a few years of pain (presuming the owners don't have a spare 250 mill capital) for a more profitable 'business' in the future? A profit that relatively may not even he felt (again very rudimentary but would the 20 mill make a difference if all clubs have 100 mill plus transfer budgets from increased TV and sponsor ship deals? Bearing in mind that lots of these sides have new stadia already yet we've not always seen this advantage over us translated into 'success').
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Well certainly large revenues do not guarantee success (Liverpool FC, exhibit #1, My Lord)!

I think the point is that each of the 4 major revenue sources need to be improved and any sensible business owner with the appropriate resources would do that. I do think the stadium is important but there are quicker "wins" to be had with commercial and sponsorship improvements first.

How those increased revenues are then utilised is very much down to the quality of the football management, scouting, coaching and academy development at the club.

I guess we will never know how good we may be at spending much larger sums until we get the chance to do so!
 

The amount of day to day staff,caterers,cleaners etc working at FF,any visitors will be noticed and leaked no matter how much the club want it being kept under the radar
 
The Esk said:
Good post mate.

There's definitely an investment case for a new stadium and also one for a redeveloped Goodison, particularly when there are significant capacity and revenue constraints on the existing asset. Admittedly the initial return on capital is fairly low, but as you yourself point out it can significantly increase the asset value of the club.

Previously I have shown that a stadium with capacity of 50,000 including around 4000 executive seats could at capacity increase existing revenues from less than £20 million to £35/38 million without eye watering increases in ordinary or concession seating. If you add in the reduced running costs of a new stadium then you begin to see an acceptable return on say investment of upto £250 million.
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Except in terms of repaying the loan even at 8% interest and over a reasonable period the increase in revenue is less than the repayment leading to negative cashflow.
Naming rights and other usage are the key along with corporates in my opinion.
Why a new/redeveloped stadium?
Easy - have to expand other streams of income in order to significantly increase the wages budget under FFP to attract players to win things.
Kitbag deal. I've said it before, how much to buy out the contract as that will affect the decision on what to do about it as you have to factor it in to see if your profit level justifies it rather than running it down.
Was looking at you earlier 4 point strategy, and again as I've said before the JG loan could conceivably have no benefits to being paid off and the Prudential Trustees loan would have to be repaid before a ground move (certainly),or a redevelopment (probably) as ground capacity and the stream of income underpinning the loan is compromised.
Edit JG paid off pre-term
 
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