New Everton Stadium

[Amw79]

Ah thanks mate that's the sting in the tail I was looking for, ok so we pay back 576 million over 40 years.

What's to stop the finder looking for an additional 100mill, 200 mill "nominal fee"? For us to take ownership of the ground?

Is there anyone who has expierence of deals of this type who would be able to reassure me that that the nominal fee to take ownership, will likely be preagreed as part of the initial funding agreement?

I assume that would be agreed in the funding agreements. Otherwise yeah, they could just rinse us at the last minute.

Suppose it would depend on who the 3rd party funder is and what their relationship is to EFC

 

[Neiler]

The fee would be legally binding and pre-agreed at the start of the contractual term

Really mate? excellent, if that's true.

This is possibly the deal of century, my one concern was the ownership, beyond the funding stage of the lease.

If the ownership is agreed after the 40 years, this is an ingenious deal, how the hell are we getting away this.

14 million a year for a new ground on the docks, with a turnover of over 100 million a season.

Put it like this we were paying almost half of 14 million in interest payments a year before Moshiri took over.

We're robbing here and no mistake.

 

[nsno-chris]

 

[Librarian]

Really mate? excellent, if that's true.

This is possibly the deal of century, my one concern was the ownership, beyond the funding stage of the lease.

If the ownership is agreed after the 40 years, this is an ingenious deal, how the hell are we getting away this.

14 million a year for a new ground on the docks, with a turnover of over 100 million a season.

Put it like this we were paying almost half of 14 million in interest payments a year before Moshiri took over.

We're robbing here and no mistake.

Naming rights could cover some of that 14m too

 

[Neiler]

I assume that would be agreed in the funding agreements. Otherwise yeah, they could just rinse us at the last minute.

Suppose it would depend on who the 3rd party funder is and what their relationship is to EFC

Like I said mate, I think that's a critical aspect to the deal, hopefully it's part of the funding agreement before a stone is turned.

If it is, this deal is amazing.

 

[Connor]

The way i read it, financing a Stadium this way will allow us to remain competitive on the pitch also.

As quoted by Red and White Holdings years ago; They seem to disagree with how Arsenal financed The Emirates.

"The previous decision by the Board to fund the building of the Emirates Stadium with long-term debt was, we believe, certainly not about self-financing. If it had been, it would have been funded through a mixture of debt and non-dividend equity. Instead it allowed, in our view, the major shareholders of the time, who happened to all be Board directors, to load the Club with a liability, to benefit from increased future revenue streams and consequent increase in the value of their holdings, whilst avoiding dilution of their equity. The Board of the time then appeared to pursue a policy of increasing ticket prices and squeezing the fans to cover the short term cost increases which allowed them to bridge until all of these shareholders and Board directors sold 100% of their holdings and cashed out at vast profits.

This policy does not seem to have changed. We have sought and been refused any meetings with Mr Kroenke despite the fact that we own almost 30% of the Club or to put another way almost 1 in every 3 seats in the stadium. It is clear that our stated policy for the major shareholders, namely Mr Kroenke and ourselves, to inject non-dividend paying equity into the Club by way of a rights issue to reduce the debt and invest in the future is of no interest to the Board. Mr Kroenke was sold a vision by the Board at the time that the Club could be successful without further investment, so he is pursuing a similar policy which is to run the Club without any investment and to avoid any dilution of his equity, a good part of which was funded by a loan from Deutsche Bank AG to KSE, UK, Inc. at the time of the mandatory offer. The status of that loan and whether it is still outstanding has not been clarified by Mr Kroenke.

As a consequence of this policy, which is dressed up as prudent financial planning, it is down to our manager, and not the shareholders, to have to deal with the Club's tight finances, carry the burden of repaying the stadium debt by selling his best players and having to continue to find cheaper replacements. All of that, naturally, comes at the expense of performance on the pitch."

YES MART.

 

[jal123]

I'm getting the word..... Wirral.

 

[Amw79]

Like I said mate, I think that's a critical aspect to the deal, hopefully it's part of the funding agreement before a stone is turned.

If it this deal is amazing.

Yeah, after initially being a bit disheartened after what looked like slow progress, having read more detail it seems very well thought through.

Problems will be LCC approving the SPV function, getting planning approval on a difficult build, and satisfying the world heritage site criteria. That's assuming the funding model has been teed up already behind the scenes.

 

[Death]

Trips over to see Everton are going to be absolutely boss.

 

[Damo W]

To me this looks like a great deal all round.

For starters the Liverpool waters scheme was not really motoring ahead and needed a centre piece. Along come Everton. This will have not gone unnoticed by Moshiri, I can't be sure but his career at the various accountants I would guess has a background in corporate finance, i.e. The ones who source money for company expansion do deals to buy and sell companies Etc. This deal has the impressions of being brokered by such.

The funder will not be building the ground for Everton with 100% debt even with LCC's guarantee SPV in the middle between the club. My guess is that this will be a Moshiri connected entity.

The question you have to think about now is Why would Moshiri who lets face it owns Everton and pulls the strings. Allow his money to be used to buy the land and transfer this to the funder company!!! As even though this has not been stated that is how it will happen as Everton have the HEads of terms to buy the land for the development. Then Everton pay rent to LCC and they on pass this to a funder entity that is unconnected!!!!!

At this point before people say he isn't putting up money, he is he puts up the equity and if anyone thought why is he not funding it himself, which company in this age enters into such developments putting up all there own equity at risk when you can share that risk with banks who will be willing to take that risk as that is their business. This then allows Moshiri's other funds to be used in other areas and spread the risk of his investment.

Let's be honest Everton is an investment for Moshiri if you like it or not that's is what we are. But he is not the person to splash £80m on shares another £80m on paying off debt etc and then let it run down the drain on an a bad decision re the stadium or not progressing the team. We can have the best stadium in the country but if we are not a leading team his investment goes down the drain and he won't make money on his investment.

This is a great day for Everton, although I wanted to see a design of stadium which I suppose I can wait a little longer for.

The future is bright, the future is blue, royal blue on the banks of the royal blue Mersey

 

[Neiler]

Naming rights could cover some of that 14m too

Corporate Facilities and the sale of Goodison it will pay for itself mate. We're getting it for nothing, yes a stadium on the docks for nothing.

My only issue is the ownership and fee after 40 years, but if the fee is agreed in the innital funding agreement then you couldn't dream of this type of deal.

FFS In a World were Ross McCormack costs 12 mill between championship clubs, this deal is hard to believe it's That good.

On a separate note, huge Kudos to the Mosh for pulling this off, it's an exceptional deal.

 

[Moomin]

It would be good if Usmanov eventually gets involved but I can't see it. If he wanted he could have got rid of his shares anytime with Arsenal easily enough, club is a money making machine.

With problems bubbling at Arsenal I wouldn't be surprised if he is causing trouble behind the scenes to get full control. He is a Arsenal fan by all accounts and turned down the chance to buy United. If we as fans struggled to get tickets for Everton would we give up and go and support someone else??

Now we come to USM which Farhad is the chairman of and Usmanov owns. People keep saying they will provide the materials to us, but can they even produce the steel we need?? I honestly don't know and the links people have put up here show the majority of product they produce is pellets and pig iron. With reference to niche steel products, I wouldn't class steel beams for construction market as niche. Majority of beams will come from China, can they offer at a better price than them??

Even if the steel was provided as FOC, it's just a fraction of the whole cost of the build.

 

[jal123]

Corporate Facilities and the sale of Goodison it will pay for itself mate. We're getting it for nothing, yes a stadium on the docks for nothing.

My only issue is the ownership and fee after 40 years, but if the fee is agreed in the innital funding agreement then you couldn't dream of this type of deal.

FFS In a World were Ross McCormack costs 12 mill between championship clubs, this deal is hard to believe it's That good.

On a separate note, huge Kudos to the Mosh for pulling this off, it's an exceptional deal.

Goodison is worthless as an investment, and I say it with a heavy heart, I have two mortgages in the area.

 

[gorgeousgeorgeEFC]

All the major news outlets going with the 50,000 capacity.
That would put us below: Man Utd, Tottenham, Man City, West Ham, Arsenal, Liverpool, Chelsea and Newcastle.

If the capacity of the new stadium is as low as 50,000 I will run naked along County Road.

Even Crystal Palace have plans for a bigger capacity than that.

 

[TommyDavo]

Love all the speculation on here! Just sit back and let the big boys take you on a ride, nought you can do about it anyway (sit down Mosh). If it all goes pear shaped another bus will come along. Will have me pass then as well