A mortgage makes no sense. Say they invest 250m and get 30% equity. They mortgage the stadium and they get 30% of the money raised and they have a liability to pay 30% of the repayments. They may as well just flush the interest rate in value down the toilet. They won't be mortgaging the stadium to try and make money, they would have a better return on their investment buying Lotto tickets
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Yeah I don't see the mortgage idea either.
What I do see is a proper structure being put in place, and a move up the league.
Quick turnaround. Make the club a more attractive proposition and sell.
Maybe they sit back as well and see where the new TV deals go and the introduction of a Netflix style subscription service?
Could make any PL club more attractive to a sale
What I do see is a proper structure being put in place, and a move up the league.
Quick turnaround. Make the club a more attractive proposition and sell.
Maybe they sit back as well and see where the new TV deals go and the introduction of a Netflix style subscription service?
Could make any PL club more attractive to a sale
cantlivewithem
Player Valuation: £950k
I am concerned about a company like MSP taking over Everton as they are all about profit. They don't care about our History. We go along with the assumption that the more successful we are the more profitable we will be. But what happens if making us successful requires a level of investment that means the owners would never make a profit or have to invest billions before the club starts seeing a profits like the state owned clubs are doing.
MSP wont be like that. What happens if the way to make Everton profitable is to cut down dramatically on wages/ transfers and we then become a yo-yo club where we are still profitable as a championship because we are getting periodic seasons in the premier league with the tv revenue and then parachute payments whilst in the championship.
At the moment the Premier League is 6 teams (extending to seven with the inevitable rise of Newcastle) followed by 13 championship clubs and Everton. the 13 championship clubs are clubs in the premier league that are on a conveyor belt with the clubs that are in the championship, swapping places when it is there turn to go up or down. Sometimes along that journey when promoted they have good or great mini periods i.e Leicester and Brighton before invariably getting related again
Everton are a club in limbo. We are not good enough to join that 6 or 7 and would require massive investment from a sugar daddy to get there and stay there. However even though we have been so poor the last two seasons we still cant put ourselves as one of the rest, the championship club 13 because we have never been related from the premier league so have never been part of that conveyor belt. Leicester had finished 5th twice and 8th in the previous 3 seasons before last season and were champions 5 seasons ago. The season before last we just avoided relegation yet when it came to it last season they went down and not us, because they are a championship club at the end of the day and we aren't yet
I am really proud that we have been a top flight club for 121 out of the 125 seasons of football and I worry that that record starts to be chipped away at because we have ruthless owners who think nothing of that and only profits and if cutting costs to make a profit means 1 or 2 seasons out of every 10 we could be in the championship then not only are we never going to be one of the 6 or 7 top clubs again we would be also losing the very thing that sets us apart from the rest
MSP wont be like that. What happens if the way to make Everton profitable is to cut down dramatically on wages/ transfers and we then become a yo-yo club where we are still profitable as a championship because we are getting periodic seasons in the premier league with the tv revenue and then parachute payments whilst in the championship.
At the moment the Premier League is 6 teams (extending to seven with the inevitable rise of Newcastle) followed by 13 championship clubs and Everton. the 13 championship clubs are clubs in the premier league that are on a conveyor belt with the clubs that are in the championship, swapping places when it is there turn to go up or down. Sometimes along that journey when promoted they have good or great mini periods i.e Leicester and Brighton before invariably getting related again
Everton are a club in limbo. We are not good enough to join that 6 or 7 and would require massive investment from a sugar daddy to get there and stay there. However even though we have been so poor the last two seasons we still cant put ourselves as one of the rest, the championship club 13 because we have never been related from the premier league so have never been part of that conveyor belt. Leicester had finished 5th twice and 8th in the previous 3 seasons before last season and were champions 5 seasons ago. The season before last we just avoided relegation yet when it came to it last season they went down and not us, because they are a championship club at the end of the day and we aren't yet
I am really proud that we have been a top flight club for 121 out of the 125 seasons of football and I worry that that record starts to be chipped away at because we have ruthless owners who think nothing of that and only profits and if cutting costs to make a profit means 1 or 2 seasons out of every 10 we could be in the championship then not only are we never going to be one of the 6 or 7 top clubs again we would be also losing the very thing that sets us apart from the rest
Toffe3m4n
Player Valuation: £80m
My only real fear of this is alleviated somewhat by the fact that Bell & Downing are both scousers (or at least from the north west) so will know just what this club means to the city and it's people.
End of the day it's in ALL of their best interests that Everton are, ultimately, successful on the pitch as success off it just doesn't happen otherwise.
twoblue
Player Valuation: £35m
This is totally wrong. Any subscription service would see the total viewers directly relating to income. In short, we would prob get a max 150k viewers, while arsenal, Liverpool and Man Utd would get a billion subscribers between them from world wide fans… Man City, Chelsea would largely depend on their on going transfers of world stars.
We would be screwed for ever competing again.
Lobster Johnson
Player Valuation: £35m
On the other hand, 99% of football clubs are appalling ways to make money. Asset stripping doesn't really make sense as a strategy when we're halfway through the build of a state-of-the-art stadium. The only way they make money on this deal is to improve the clubs commercial and sporting standards, get the stadium humming and flip it to somebody else.
twoblue
Player Valuation: £35m
That is the best way. If we were to get to 7th and in a shiney stadium we would be in a decent position to sell. A decent option for new owner.
Which is why I could see Purslow coming in now villa have got rid. Practically just turned them round in the same manner.
Got involved at a joke stage for the club, changed everything from top to bottom and the club is now a well run and oiled machine. Villa now looking globally to make them a European club.
As long as he doesn’t bring sloppy g in.
MrGrumpy
Player Valuation: £50m
Yoyo club.. you do realise that if Everton dropped out the league we be far worse off. Meaning they would make zero profit.
They can’t asset strip as there is nothing to strip.
I don’t get why people are staying stupid stuff like this
cantlivewithem
Player Valuation: £950k
I never said asset strip. I talked about making the club profitable. you can make the club profitable by significantly increasing the income we already get i.e through better sponsorship etc. Equally you can make the club profitable without increasing income but by reducing expenditure such as wages, transfer spend etc. If we reduced the amount we spent on wages and transfers to the same level as Burnley we would be profitable but we run the risk of being the of being one of those clubs that come up stay around and bit then go down then come up again. Its a question of whether a group of soulless, ruthless Americans see that as an option
MrGrumpy
Player Valuation: £50m
Make far more money by making Everton profitable in the 1st place, the stadium will massively increase our value. If we are in the PL still.
No sure where people get this idea from about Americans being tight and only in it for profit
The RS spend a fortune
Chelsea fella spent stupid money
It’s have spent a fortune(yes they take money out but still spend)
toffee66
Player Valuation: £8m
It is wrong to compare MSP to Todd Boehly.
MSP are venture capitalists. VCs run a tight ship to generate positive cash flow that they extract via interest payments on debt. They will be trying to run us competently but they will not be investing. cantlivewiththem isn’t being unrealistic IMO.
Best case scenario they fund stadium completion acquiring a majority stake via convertible warrants over next 18 months and then sell the bulk of their stake to a better funded consortium or billionaire.
They have strong links with Palace co-owner David Blitzer (who is trying to sell) and others (outside football). Every stake they have in football is a small minority %, partnered with Blitzer as majority guy, or lending only. They will not want to be lead owners for any length of time.
MSP are venture capitalists. VCs run a tight ship to generate positive cash flow that they extract via interest payments on debt. They will be trying to run us competently but they will not be investing. cantlivewiththem isn’t being unrealistic IMO.
Best case scenario they fund stadium completion acquiring a majority stake via convertible warrants over next 18 months and then sell the bulk of their stake to a better funded consortium or billionaire.
They have strong links with Palace co-owner David Blitzer (who is trying to sell) and others (outside football). Every stake they have in football is a small minority %, partnered with Blitzer as majority guy, or lending only. They will not want to be lead owners for any length of time.
Toffeelover
Player Valuation: £80m
brieverton
Player Valuation: £50m
I think the concerns are valid but we also have to apply a wider context.
Many would like a Sheikh to rock-up but it isn't happening.
We have been run in an amateur manner, by relative amateurs for the entirety of the Premier League era, and despite what seems like best efforts, have not been relegated. Yet.
We will have to see the finer details of MSP's investment when it emerges. I will accept the club being run competently and as a tight ship simply as its the best case scenario for the time being. If the club even moderately gets its house in order, and with the new stadium, there is the potential for a brighter future.
The DOF / manager have to be supported with a budget of some degree to rebuild the squad and if that doesn't happen, then we are in big trouble. We will have to sell high and buy low. In that sense I have no problem with paying lower wages. If we get recruitment right, it's difficult to envisage how we don't improve even spending a fraction of what we did before.
Recruitment is key above all and everything else - including the stadium. It has to be left to the football professionals. If MSP recognise that, and recognise the need for some degree of initial working capital, as well as allowing proceeds of sales to be fully or near fully reinvested, then I'll take that.
It may not be what some want to hear but its possible to do this and be comfortable in mid-table for a few seasons, in such case you are near to being back in Europe anyway. It wouldn't be dancing in the streets time, but a period of modest stability and growth, that will do me if it's on offer.
Mrk
Player Valuation: £40m
This argument fundamentally missunderstands the nature of investors. Firstly, all investors care about profit, if they don't, they aren't investors, they're philanthropists or patrons. There aren't many of those around.
Secondly, a core principal of investing is a return on capital. This means that investors look for opportunities that will let them turn £X into £Y. The idea that MSP are going to cut our expenditure to the bone in order to make us 'profitable' is lunacy, because that *does not increase value*, it does quite the opposite in this game. What MSP will do is identify how best to get a return on their capital, and if they a confident that moderate and sensible investment into our playing squad will result in good returns on that investment in the future, you can bet that's what they'll try to do.
An Everton that is competing for europe most seasons but losing £20m a year is much much more valuable to investors than an Everton making £20m profit but only just surviving by the skin of our teeth every season.
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