New Everton Stadium

[VentureBrosEFC]

we all know how corrupt things are, and deals this big normally mean somesort of 'agreement' behind the scenes.

the financing just seems waaay too overly complicated to me, for no real reason.

Granted most financial matters escape me but it's definitely a way I've used to rationalize what seems a strange arrangement to me but as I said I'm a dum dum on these matters.

 

[Brahford]

I'm not sure that matters.

It does how else would they have attracted 60k ...

 

[jal123]

Fake club that needed to make a history ...

Irrelevant

 

[Efcjake]

Mosh makes more money from investing that himself than in our stadium. It's business.

You seen his balance sheet? Do you know how much he would expect to profit from a sale of his stake in the club after the stadium is built?

You don't.

It is about limiting his personal liability and reducing the cost of financing to the club and also to himself.

 

[wiggie]

My source got the length of the deal wrong. They told me 30 not 40 years. Spot on about the annual profit to council though. £40m

Sorry if i mislead anyone! ;-)

Wonder who will supply the steel.....

 

[The Cowboy]

so 'spv' could be say Usmanov. hypothetically.

The SPV will be a consortium (members tbc but could easily include Mosh, Uz, LCC and private investors) which will be the shell company for the development.

 

[ianefc]

It does how else would they have attracted 60k ...

Chelsea fans will be saying the same about us.

 

[LouReedwalkonthewildside]

The 'Funder' will own the stadium, who will lease it to LCC SPV who will then sub-lease it to EFC.

 

[Eggs]

But the council are irrelevant in all this Wiz, do you think the planning dept would refuse any plans we put up?

The council don't own the land.

...I suspect LCC are pivotal in making the governance happen and their involvement secures lower interest borrowing. I'm no financial expert but it seems to me that we pay interest on the loans (funding stream to be secured by EFC) and to LCC (over 40 years) for underwriting the deal. After 40 years, the ground is ours in much the same way as paying a mortgage off.

Asked about the risk factor, Anderson said LCC had secured expert advice from two separate legal experts who concluded it was a good deal for the council. If Everton fail to repay loans for whatever reason, assets (players inc) become the property of LCC.

That's my take but I'm no businessman.

 

[roydo]

But can lend the money from anyone

And that is it, in a nutshell.

Anyone. Y'know.

 

[Mikeonlythebestwilldo]

For me this is a major obstacle cleared as we now have Peel's buy in to the stadium project and from what people have told me Peel are notorious to deal with, the next challenge is to secure the finance to deliver it.

Now EFC has control of the site the club can now submit a application for their plans on the site just gutted we will have to wait a year to it to be submitted so I guess securing the finance is key here.

In around 3 months planning will be submitted to hopefully passing early 2018 mate

 

[Armaghtoffee]

There is not a chance in hell that Moshiri will get all this done, and then wonder where the finance will come from. The whole reason for this SPV thing is to enable us to have a ground, but to enable funds to be funnelled in at an arms length.

Well the first bit of that is bang on anyrate.

Maybe I'm just too much of conspiracy theorist but this opens the door for USM to fund this build and when complete and all shiny on the dock, Usmanov will buy the club.

Easy.

Edit, probably a million people have already summised this while I'm celebrating the news

 

[ashwuk76]

There is not a chance in hell that Moshiri will get all this done, and then wonder where the finance will come from. The whole reason for this SPV thing is to enable us to have a ground, but to enable funds to be funnelled in at an arms length.

Well the first bit of that is bang on anyrate.

Totally agree with this. Shadow investors...

Also on planning...considering this is gonna be a way for the council to make money do you really think planning will be refused? I highly doubt it.

Plus as people have said.. and I think Meiss has said before.. . He's been on-board for 12 months... you really don't think designs have already been drawn up? I imagine 5 or 6 designs or something. Even think they council document hints at that too... but can't be bothered to find it!

 

[brettangellnightporter]

You seen his balance sheet? Do you know how much he would expect to profit from a sale of his stake in the club after the stadium is built?

You don't.

It is about limiting his personal liability and reducing the cost of financing to the club and also to himself.

which he fully deserves like Desmond from celtic. Unless you believe in fairy godmothers

 

[Efcjake]

i think im getting it now...

with this type of arrangement we will be saving tens of millions per season in loan repayments, which will enable us to use those funds on players/wages instead.

*saving millions per season in extra interest

Still have to pay off the principal amount, we just pay less money to borrow the principal because LCC have a better creditor relationship and more secured assets with the banks.