New Everton Stadium

[stretford blue]

I'm a little underwhelmed at us needing the council to help us fund it.

Didn't Anderson say a long time ago that lcc would not be funding any stadium. Just can't see lcc putting up the money for a stadium

 

[jinkyali]

I'm a little underwhelmed at us needing the council to help us fund it.

The council need this as much as we need this.

 

[bullensboy]

Didn't Anderson say a long time ago that lcc would not be funding any stadium. Just can't see lcc putting up the money for a stadium

as far as I understand it, LCC is just giving us access to preferential rates of interest, for a small fee
LCC are not directly funding I dont think

 

[Jamiednm]

Does the council get a preferential lending rate because it's a public office or something? Otherwise what's the point of using them as a middle man?

 

[DerbyshireAndHarper]

Didn't Anderson say a long time ago that lcc would not be funding any stadium. Just can't see lcc putting up the money for a stadium

Acting as a guarantor isn't funding it.

Technically the council are only ever 'funding it' if we default on a payment. Which will never happen.

It's a win win because we aren't even going to be tenants, this will essentially be a mortgage we'll have and we'll own the stadium outright eventually.

 

[GwladysBlue]

I'm a little underwhelmed at us needing the council to help us fund it.

If what is being suggested is true, it is no different than a mortgage.

It allows us to keep competitive in the transfer market, whilst still owning the stadium.

 

[AmericanBlue]

I'm a little underwhelmed at us needing the council to help us fund it.

So the council ARE funding this? In the climate of us having a billionaire as majority shareholder, USM funding bits here and there, I find that a bit unexpected.

 

[jinkyali]

From what I've heard today, that's pretty much bang on the money. Headlines will be that the council are forking out £350m for Everton's new ground. But the deal will generate significant money on a yearly basis for LCC (well done to those who cracked that bit)

I'm not sure if the figures will be made public, but if what I've been told is correct, LCC would make comfortably in excess of £100m over the life of the loan.

The thing that is a bit scary is what happens if Everton defaulted on repayments. I won't divulge publically what I've been told, but suffice to say LCC have very significant mechanisms built into the deal to ensure that they'll get what they need from Everton to satisfy the lender and make their profit.

EFC use LCC access to cheaper funding?
LCC get paid by us to do this via fixed payment and act as guarantor.
EFC sell naming rights and use funds for transfers/other stuff.

 

[DerbyshireAndHarper]

It's like a 17 year old kid needing to take out a bank loan and getting his parents to be the guarantors for the loan.

The parents aren't funding the loan, the bank are, and the banks are lending the kid the money because the parents will save the day if anything bad happens financially. The parents are willing to do this because it's highly unlikely anything bad will happen.

 

[jinkyali]

So the council ARE funding this? In the climate of us having a billionaire as majority shareholder, USM funding bits here and there, I find that a bit unexpected.

It may well be that in theory LCC are funding, but the arrangement is to utilise cheaper rate of finance.
If LCC can put up 400m at 3% and we go to a bank and get offered 8% why wouldnt we use the council? Equally, the council can thus charge us for nothing.

 

[Togger Blue]

Wonder if LCC take Goodison?

Doubt it - nobody will ever take Goodison. Millwall couldn't even get much further than the stairs to try and take Gwladys Street in 1973!!

 

[The_La]

Didn't Anderson say a long time ago that lcc would not be funding any stadium. Just can't see lcc putting up the money for a stadium

That's the thing. They're not technically. But angry people will read it as they are.
I'm not a finance person by any stretch of the imagination. Rest assured the LCC doesn't have a pot of £350m which they are donating to EFC.
But they can help EFC to get money if that sort

 

[stretford blue]

It may well be that in theory LCC are funding, but the arrangement is to utilise cheaper rate of finance.
If LCC can put up 400m at 3% and we go to a bank and get offered 8% why wouldnt we use the council? Equally, the council can thus charge us for nothing.

Seems like a cunning plan baldrick

 

[DerbyshireAndHarper]

And now we know why Anderson was so vocal in explaining why LCC owning USM Finch Farm was such a good money spinner for LCC.

 

[eame71]

Hang on hang on.... what about the llandudno ferry.... I hope LCC are guna find this as well! !!!