New Everton Stadium

[chrismpw]

Liverpool Council won't own the site in this instance though

Good point, I'd lost that in the muddle. Peel holdings, an unaccountable, not democratically elected body will own it, despite all the money we hand over.

The word Holding, in connection with ground ownership is bothering me too.

 

[chrismpw]

Liverpool Council won't own the site in this instance though

Good point, I'd lost that in the muddle. Peel holdings, an unaccountable, not democratically elected body will own it, despite all the money we hand over.

The word Holding, in connection with ground ownership is bothering me too.

 

[nsno-chris]

Yeah, land was £30m wasn't it? Don't think we need to secure funding for that.

I'm sure I read it was closer to £22m, I'll need to find the article m

 

[maccavennie]

so next week, what needs to get passed by the government or is it the council? At this stage do we need to confirm capacity? I mean councils/government might give it the go ahead regarding planning permission for a 50k seater stadium. But what happens if we want it to be 60k, surely we can't just decide to add another 10k on top without prior notification.

Or will the capacity be confirmed once everything has been given the green light?

 

[The Cowboy]

Good point, I'd lost that in the muddle. Peel holdings, an unaccountable, not democratically elected body will own it, despite all the money we hand over.

The word Holding, in connection with ground ownership is bothering me too.

Isn't this just like freehold/leasehold? We'll just pay ground rent?

 

[JLW]

Whats the next announcement would it be from Dan Meis side (ie some images of the new ground)
Or the funding?

 

[Westend Blue]

A question I have about this financial set-up is if we're paying the council a security fee of £4m-£6m, then doesn't that significantly reduce the profit we would be making p/a from moving stadium?

Sort of takes away one of the main reasons for moving.

Sorry if this has already been asked.

Would imagine it has something to do with the LCC having access to better loan terms

 

[1966efc]

so next week, what needs to get passed by the government or is it the council? At this stage do we need to confirm capacity? I mean councils/government might give it the go ahead regarding planning permission for a 50k seater stadium. But what happens if we want it to be 60k, surely we can't just decide to add another 10k on top without prior notification.

Or will the capacity be confirmed once everything has been given the green light?

I think the Council cabinet are being asked to give the go ahead to set up the joint vehicle to seek funding etc. Questions about design, planning & so on will be for later on in the process.

 

[kithnou]

so next week, what needs to get passed by the government or is it the council? At this stage do we need to confirm capacity? I mean councils/government might give it the go ahead regarding planning permission for a 50k seater stadium. But what happens if we want it to be 60k, surely we can't just decide to add another 10k on top without prior notification.

Or will the capacity be confirmed once everything has been given the green light?

March 31 is just the council approving the LCC "financing plan" mentioned by the Mayor. All the other stuff in the planning permission document will probably be start of next year.

 

[Neiler]

A question I have about this financial set-up is if we're paying the council a security fee of £4m-£6m, then doesn't that significantly reduce the profit we would be making p/a from moving stadium?

Sort of takes away one of the main reasons for moving.

Sorry if this has already been asked.

You have to take into account what Moshiri is doing in creating revenue streams mate, for example in the last 12 months he has created a 75mill sponsorship deal to sponsor things that previously have never been sponsored like our sleeves and training ground. That deal is worth 15mill a year, the reported liability of the stadium is 14.4mill annually (i actually think thats likely to be higher).

In that context he has already provided new sponsorship to meet the outgoing of the new ground annually in the last 12months that previously didn't exist. In essence the stadium liability annually is being paid for by sleeve and training ground sponsorship.

Its also worth noting before our debt was cleared we were paying back between 7-10 mill a year in loan management that is now not an issue. We are a business with a turnover of over £120 mill a year and growing annually.

When you look at additional revenue streams like, increased capacity, corporate facilities, during the week conference facilitates, staging events, naming rights and possibility the sale of Goodision.

Its very likely the whole liability will be met without any stress to current perimeters, in fact its likely to be a money spinner.

 

[Lee Smith]

Hello. My name is Farhad Moshiri.

I'm an accountant. A very good accountant. I know money.

I need £300m for a boss new stadium for the mighty Ev.

I have £300m in liquid assets, currently invested in some of the best performing financial vehicles known to man, at the equivalent of a savings rate of 7%. This generates me about £21m a year before a minimal tax liability.

Because I'm clever, I have also engineered a way in which I also have access to a borrowing rate of 4%. So borrowing the 300m will cost me £12m in interest rates a year.

If I borrow the £300m I need instead of using my own liquid assets, I will be £9m a year better off, money which can be used to buy utterly boss football players.

Be smart. Be like the Mosh.

 

[Yarrgh]

How does the security payment work? Will it be paid continually through the lifetime of the financing period or will it eventually get to a size were it does not need to be topped up, or even used to pay off the financing early?

Could it become in essence an endowment on the end of the financing period?

 

[arch stanton]

Good point, I'd lost that in the muddle. Peel holdings, an unaccountable, not democratically elected body will own it, despite all the money we hand over.

The word Holding, in connection with ground ownership is bothering me too.

i thought the whole point of the announcement yesterday was that we had agreed to purchase the land so Peel wouldnt own it. We would. Similarly with the stadium build costs, OK we'd be borrowing the money but its just a big mortgage. Its not rocket science

 

[chrismpw]

Isn't this just like freehold/leasehold? We'll just pay ground rent?

Freehold means you own the land outright (unless the Queen takes a fancy to it, or if, as recently changed by our caring, sharing government, the state permits an oil company to frac it from underneath) . Leasehold - I remember being advised never to buy leasehold, means the owner can set and change terms at the end of the lease, plus make you culpable for all kinds of "maintenance" charges. Now, suppose a club had invested hundreds of millions on a stadium on your land, and 40 years later the lease was up to be re negotiated. Is a club in a position to walk away from a deal it doesn't like and build another stadium?

 

[chrismpw]

i thought the whole point of the announcement yesterday was that we had agreed to purchase the land so Peel wouldnt own it. We would. Similarly with the stadium build costs, OK we'd be borrowing the money but its just a big mortgage. Its not rocket science

So we'd own the land out right? Freehold?