New Everton Stadium

[WA Toffee]

Our so called billionaire owner paying for it? I thought that was the point. he also keeps on saying while he is around money shouldn't matter. yet here we are, saddling the club with a load of debt and having to beg to the council and others.

That is quite an unrealistic option. Do you know of many chairmen who have paid for a 500 million pound stadium out of their own money?

 

[joey_macmo]

Nope. Not even close.

If it goes tits up ( which it very well could considering even the RS got close to bankruptcy and they are and where far better run) the council is then liable for 300+ million.

your analogy is crap, its like putting a 50K car down as a guarentor for a 10k loan, for a person who has the job title of professional bum.

When have everton shown ourselves to have the ability to pay off a half a billion pound debt?

By assets I'm talking about we have no 50+ million pound players now and talking about insurance on players, what are we gonna do? start mowing them down and getting the rewards?

it could bankrupt the club and the city and moshiri could still walk away laughing.

How is it people are DEFENDING a Billionaire who from what it looks like, wont even provide the other 1/3 of the financing? and is loading the city of liverpool and everton football club with a debt of 500+ million?

the more I think about it, the more this looks like a massive swindle.

buy a stake of a club - pump 500 Million in debt into it - build stadium - sell shares for massive amounts of profit - club cant sustain half a billion pound debt - club goes bankrupt -walks away laughing.

If it goes tits up ( which it very well could considering even the RS got close to bankruptcy and they are and where far better run) the council is then liable for 300+ million.

Liverpool a far better ran club under Hicks & Gillette, thanks for the laugh mate.

By assets I'm talking about we have no 50+ million pound players now and talking about insurance on players, what are we gonna do? start mowing them down and getting the rewards?

The insurance value is just a rough value of the playing squad, the playing squad being part of our assets. The mowing down players thing did make me laugh though, kudos.

How is it people are DEFENDING a Billionaire who from what it looks like, wont even provide the other 1/3 of the financing? and is loading the city of liverpool and everton football club with a debt of 500+ million?

That will be the billionaire who has already put £150m into the club, with no interest, no repayment terms & its being classed as equity, judging by you & your crews reactions you would have rather him not do that and just finance the shortfall in the stadium from the council funding.

The problem is with that is we'd still have to pay Moshiri back and still owe the Pru/Barclays the money owed on Goodison and season tickets.

great business sense

 

[davek]

The council is either going to loan money itself, and then loan that money to Everton. Or they will act as a guarantor that could potentially increase the likelihood of Everton obtaining commercial loans themselves. In either case, it will only end up costing the council in the event that Everton default on the loan.

However it seems that the council lending money directly to the club will be seen as more controversial than acting as a guarantor, even though the risk will not be as high.

If the money is loaned by the council, and then loaned to Everton, then the council is at risk of having to pay back a loan at a rate that they obtained if Everton were to default. Whereas they would be obliged to pay back a loan at a higher rate if Everton defaulted on a loan that had been secured with the council acting as guarantor.

That's my understanding of it anyway.

Yes, and for that reason this project is dead.

LCC wont sanction this at cabinet level. Too much reaction against it.

Stick a fork in this stadium plan, it's done.

 

[liamefc91]

Sit back and enjoy the ride blues. Im positive of some news in the before the end of February.

 

[joey_macmo]

But the risk is huge for the rewards though.

its like loaning a person 20k but the person has shown themselves to struggle paying off a phone bill in the past. would you do it?

I think the silence of other investor is deafening to be honest, and the fact we have struggled to get finance in the past as well. everton simply arent run good enough yet. certainly not good enough to pay off half a billion pounds.

£176m for an initial £300m outlay (which isn't even an outlay)

Terrible deal

 

[ultra]

This lot assumes that we haven't paid anything off before we go bust and that the stadium and land is worth nothing.

First things first, Everton are not going to go bust and even if we did we would be a new company playing in that stadium, continuing to pay the monthly commitments. Seeing Leeds didn't get liquidated I doubt we will. I believe there is a requirement to have a slush fund of 5 years (or an 8th of the entire loan) to be sitting in a bank account in case of any financial troubles anyhow.

The debt is not being loaded onto the council. Even 2nd divison clubs could pay that kind of money longterm yearly on a new stadium. If you have such a high opinion of the club wouldn't it be better for your health if you found another that doesn't fill you with such impending doom?

Like anyone who has ever taken out a mortgage it's likely you will never be able to afford to buy something that expensive outright to start with, but split the payments over a lot of years and suddenly it is affordable. Not to mention the thing will pay for itself by extra capacity, hospitality and naming rights.

Or lets just stand still and moan how the club that we have complained haven't been ambitious enough over the last 40-50 years are still doing nothing...

Top post mate!

I am delighted Moshiri is sorting us a great stadium on the banks of the Royal Blue Mersey! Can't wait to see it - hopefully all the naysayers will then find another club to moan about! COYB

 

[Frang]

may aswell lock this thread @mods

 

[Jacko93]

Yes, and for that reason this project is dead.

LCC wont sanction this at cabinet level. Too much reaction against it.

Stick a fork in this stadium plan, it's done.

They're going to MAKE £7m per annum. Why on earth wouldn't they do that? Interesting call on Roger Phillips then tbh, Liverpool loaned against the city in a similar fashion to allow the dock system to be created, that led to the most successful part of this cities history.

 

[davek]

They're going to MAKE £7m per annum. Why on earth wouldn't they do that? Interesting call on Roger Phillips then tbh, Liverpool loaned against the city in a similar fashion to allow the dock system to be created, that led to the most successful part of this cities history.

You know why mate. It might all sound safe as houses and rationally a good thing for all parties but these decisions are usually determined by political considerations.

IMO we'd be well shut of this plan. Great site, great idea, but the funding package cant be achieved...and I think the long term debt is a danger to EFC.

For that reason we should drop this right now.

 

[blulouie]

Yes, and for that reason this project is dead.

LCC wont sanction this at cabinet level. Too much reaction against it.

Stick a fork in this stadium plan, it's done.

Dont think its the councils loan Dave.
Its a long term mortgage taken out by Everton at a low interest rate with LCC acting as guarantees .
I take it if the club defaults the council take over the stadium and all its assets.
Thats the way I read it like.

Edit the council also gain by around 7 mil pa as far as i can gather.

 

[The binman chronicles]

You know why mate. It might all sound safe as houses and rationally a good thing for all parties but these decisions are usually determined by political considerations.

IMO we'd be well shut of this plan. Great site, great idea, but the funding package cant be achieved...and I think the long term debt is a danger to EFC.

For that reason we should drop this right now.

You are correct in the fact it needs to be effectively explained to all the naysayers.

 

[blulouie]

may aswell lock this thread @mods

Strange idea that.

 

[davek]

Dont think its the councils loan Dave.
Its a long term mortgage taken out by Everton at a low interest rate with LCC acting as guarantees .
I take it if the club defaults the council take over the stadium and all its assets.
Thats the way I read it like.

Edit the council also gain by around 7 mil pa as far as i can gather.

I know mate, but it's all about how this looks and the reaction to it. The intervening period of mayhem since the announcement of this model back last March/April - Everton in chaos on and off the pitch, relegation worries etc - has seen an organisational loss of status and attendant confidence in it. In short: it looks like potential folly loaning on the strength of Everton FC, especially as the stadium cost has risen.

The whole thing is in disarray financially now, and the potential PP snags just dont make this realistic anymore.

Draw a line under it and move on.

 

[Frang]

Strange idea that.

open it back up when there is something to talk about. other nonsense threads get locked without question.

 

[Sir Alan]

Anyone else worried this is about to hit some very muddy water soon?