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New Everton Stadium

Spiralling costs seems to be the media line but realistically £500 million is the going rate. £300 million sounded on the cheap side when the original plan was laid out.

I firmly believe this will happen. Moshiri has pumped in £200 million of his own money (Buying and clearing debt), that’s not the actions of a man not 100% committed to this club.
 
blulouie said:
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.
Click to expand...

This is the point that the needs communicating to the general public, what happens if. Like Joe says it is a fantastic deal for the city, our income would be guaranteed for at least the first 10 years the stadium is in existence for so let's run some hypotheticals should we default after that point.

For workings assume that LCC are acting as guarantor on £300 million. We pay the council 7 million a year for arranging the low interest rate loan. That spread over 40 years gives a yearly payment of around 15 million.

After 10 years we would have paid 70 million into the LCC coffers for next to nothing. We would have paid back over 70 million in capital leaving a sub 230 million debt. We would have also generated considerable amounts of money for the council/government by building and helping develop the the north dock area 25 years in advance of what it would have done otherwise. Business rates and jobs ahoy all down to us.

So the council at this point has a few options it could start using our slush fund to cover the total costs (15 million a year) and run for a few years or it actually only needs 8 or so million to just pay the loan back, so the slush fund could finance more years while we reduce our playing staff as contracts run down to then be able to restart the repayments to cover the debt and the money we pay to the LCC + what we have missed while we were in a bad situation.

However that assumes we can't afford anything towards the payments it is far more likely that we could pay something just not the full amount, if LCC let us off the amount owed to them while we sort out our financial problems then in reality we could be paying 4 million a year towards the loan, the other 4 million could be made by the slush fund and that could stretch 10 years that way with the council not paying a bean towards it and have already gained 70 million off the back of it. At the end of that 10 year period (not that it would ever stretch 10 years mind you, this is just worst case scenario) the debt would be down to around 150 million. This could be refinanced at a reduced cost over a longer term if everyone so wished at that point. (Again don't think that will ever happen)

Bottom line is I don't think we will ever default on 15 million once it has been hard budgeted for but even if that is the case, I find it almost impossible to see a situation that will actually cause LCC to put their hands in their pockets for us.
 
The binman chronicles said:
This is the point that the needs communicating to the general public, what happens if. Like Joe says it is a fantastic deal for the city, our income would be guaranteed for at least the first 10 years the stadium is in existence for so let's run some hypotheticals should we default after that point.

For workings assume that LCC are acting as guarantor on £300 million. We pay the council 7 million a year for arranging the low interest rate loan. That spread over 40 years gives a yearly payment of around 15 million.

After 10 years we would have paid 70 million into the LCC coffers for next to nothing. We would have paid back over 70 million in capital leaving a sub 230 million debt. We would have also generated considerable amounts of money for the council/government by building and helping develop the the north dock area 25 years in advance of what it would have done otherwise. Business rates and jobs ahoy all down to us.

So the council at this point has a few options it could start using our slush fund to cover the total costs (15 million a year) and run for a few years or it actually only needs 8 or so million to just pay the loan back, so the slush fund could finance more years while we reduce our playing staff as contracts run down to then be able to restart the repayments to cover the debt and the money we pay to the LCC + what we have missed while we were in a bad situation.

However that assumes we can't afford anything towards the payments it is far more likely that we could pay something just not the full amount, if LCC let us off the amount owed to them while we sort out our financial problems then in reality we could be paying 4 million a year towards the loan, the other 4 million could be made by the slush fund and that could stretch 10 years that way with the council not paying a bean towards it and have already gained 70 million off the back of it. At the end of that 10 year period (not that it would ever stretch 10 years mind you, this is just worst case scenario) the debt would be down to around 150 million. This could be refinanced at a reduced cost over a longer term if everyone so wished at that point. (Again don't think that will ever happen)

Bottom line is I don't think we will ever default on 15 million once it has been hard budgeted for but even if that is the case, I find it almost impossible to see a situation that will actually cause LCC to put their hands in their pockets for us.
Click to expand...


if everything was so simple then why isn't this up and running?? 2 years he's been at the helm, and he was looking into things for 18 months before coming onbaord, id assume he was looking in to stadium related things.
 

I haven’t seen any reasoning for the costs increasing but costs escalating is far from unusual in construction, particularly in the early stages. You simply don’t know what you’re working with until you survey the site in great detail. It sounds simple but things such as the soil PH levels can massively affect the design and specification of the foundations, for example.
 

Baines' left foot said:
I haven’t seen any reasoning for the costs increasing but costs escalating is far from unusual in construction, particularly in the early stages. You simply don’t know what you’re working with until you survey the site in great detail. It sounds simple but things such as the soil PH levels can massively affect the design and specification of the foundations, for example.
Click to expand...
The costs seem to have spiralled before a spade has even went into the ground!

guessing because of the cost of imports and the fact materials have went up 60+ percent the last few years. this will cost 600+ by the time we get to it i reckon. especially since its such a complicated build. and that isnt even including the brexit effect.
 
blulouie said:
Now thats a bit different.
By his quotes it looks like its all sorted too.
Click to expand...
"The finance deal is still being completed and would have to be approved by the council’s cabinet and then by full council, allowing opponents to have their say."

it aint happening, the backlash is already there, politicians are starting to get involved. no way this 2/3 thing is happening.

"“We obviously have yet to see the details but the figures quoted to date seem to ignore the additional £100m which will need to be spend on the transport and other infrastructure needed before the stadium could be used."

its gonna get far worse when reality starts to hit.
 

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