MSP Sports Capital

[catcherintherye]

If this is now just a private credit investment, the interest rate could be between 12-15%.

So essentially MSP will have agreed an interest rate for their lending, rather than say seats on the board?

 

[gazzaa2]

Just read something in the Echo that states that MSP won't be investing in Everton. If this is true, then we're in bigger #### than what we think. I've a feeling Kenwright will still be at Everton when we move to the new stadium.

He clearly wants to cut the ribbon for the opening and pass that off as his legacy. If he wasn't so useless he'd have had us in Kings Dock 20 years ago.

 

[catcherintherye]

That's been known for weeks. I'm almost certain of that.

The timing is suspicious.

"Look, our hands are tied to bring players in".

Utter 'kin scum.

I'm not saying I told you so Dave, but weeks ago I said to you BK is going nowhere. Ignore what was being reported. BK is going nowhere.

 

[BeardedScotsman]

The dodgy company we borrowed loads of money from wont let MSP purchase the 25% stake in the club

I know nothing about this other company. What it sounds like is - the other company lent Everton money. To get a loan, you typically need some type of collateral - like a home is collateral for a mortgage.

What happens if the value of your home drops by 50%? The value of the loan may be more than the value of the home.

It reads like this other group overcollateralized with the help of current ownership. If current ownership was to sell now, it would “re-value” the value of Everton down to something the Media Funding Company won’t allow. Everton as a club, when you factor in debt, is probably worth 0.

 

[Azza]

MSP was to get all of the seats on the board.

Was / is there agreement for full purchase after the 3 years at a pre-fixed price for Moshiri's shared?


Seems odd to me MSP would do all the hard work to increase value, essentially enabling Moshiri to sell his stake in a few years easier or when it's worth more after he's done zero of the work.

 

[catcherintherye]

The dodgy company we borrowed loads of money from wont let MSP purchase the 25% stake in the club

They wont allow MSP to add further debt to the club, which would be converted to equity.

 

[catcherintherye]

I know nothing about this other company. What it sounds like is - the other company lent Everton money. To get a loan, you typically need some type of collateral - like a home is collateral for a mortgage.

What happens if the value of your home drops by 50%? The value of the loan may be more than the value of the home.

It reads like this other group overcollateralized with the help of current ownership. If current ownership was to sell now, it would “re-value” the value of Everton down to something the Media Funding Company won’t allow. Everton as a club, when you factor in debt, is probably worth 0.

They may also have a charge on the stadium.

 

[Wat Tyler]

Interesting that rights and media funding have put the brakes on it. The club has been involved with them since before Moshiri took over. They seem pretty dodgy

I always assumed it was Moshiri/Usmanov loaning the money to themselves but obviously not

 

[Ruairi77]

I'm not saying I told you so Dave, but weeks ago I said to you BK is going nowhere. Ignore what was being reported. BK is going nowhere.

There's no way he doesnt turn up at goodison for 2 straight years and gets to waltz in to BMD.
----
i think

 

[BeardedScotsman]

So where does that leave us now?
MSP are still providing £100m for the stadium, is further funding now in doubt?
does this mean the stadium build is at risk?

As long as there are no unforeseen cost overruns, I would anticipate the stadium gets finished but at a very high interest charge.

 

[Neiler]

What does he mean by this? Elusive answers don’t help

We owe rights and media funding about 200mill, that’s secured against assets, Rights and Media weren’t prepared to change or dilute their security for MSPs benefit, thus MSPs investment would/could have been unsecured as such they probably wouldn’t continue with the deal.

Like having a car loan, secured against your car and you go looking for another loan on the same car - the first lender kicks up a fuss and the second lender goes, I’m out.

 

[BeardedScotsman]

Someone has asked for additional funds (according to Bearded Scotsman). I was asking who had done that.

Did I answer well enough?

 

[StHelensBlue]

I'm being honest, I know nothing about business. Does anyone know what could potentially happen if we don't get investment/takeover?

 

[Daytripper]

We owe rights and media funding about 200mill, that’s secured against assets, Rights and Media weren’t prepared to change or dilute their security for MSPs benefit, thus MSPs investment would/could have been unsecured as such they probably wouldn’t continue with the deal.

Like having a car loan, secured against your car and you go looking for another loan on the same car - the first lender kicks up a fuss and the second lender goes, I’m out.

Understood. Thank you

 

[catcherintherye]

Did I answer well enough?

I think so mate. I was just trying to clarify for someone who was asking.