New Everton Stadium

[SpongeBob brown shoes]

Not being funny but isn’t this just the jist of it..?

The council get better rates on loans than Everton (private company). So they are going to get a loan for 2/3rd of the total of the stadium with arguments sake 5% intrsest rate (completely made up intrest rate).

They then offer the loan to Everton but with say 7% intrest so the council get all the money back for the loan they’ve taken out + make an extra % for themselves. This way is still cheaper to Everton than getting a loan themselves from another source.

Isnt that what is basically happening or have I got the wrong end of the stick?

That's how I see it anyway, we have a cheaper loan option to get the development started on the Liverpool waters project (which will generate more jobs and money in the area), the council make x amount of million each year from EFC to plough back into public services, extra money they wouldn't have outside council tax and government budgets

 

[EFC78]

Couple of little titbits.
Cabinet were completely unaware of the change of plan with the funding model - Joe blindsided them with that. So that's not going to help matters.
However, if the necessary assurances are made (eg the Council having first dibs on parachute payments, ST sales etc if we went down) then it will still be seen as a great deal for the council and should get approved. The original deal passed through without a problem and was signed off by the district auditor.
There is precedent for this kind of funding to be given by the council by the way. Apparently the Aloft Hotel - obviously on a much smaller scale - was funded this way. LCC fronting up the money in return for a healthy piece of the action.

There is a race against time though. Joe needs to get it all over the line before he's out of office. He's got 2 years. What happens to him and us then? Perhaps he'll join our board!!

Someone on the Roger Phillips phone in raised a point that I was interested in. He asked about whether the interest rate is a fixed rate for the whole period or could it change? Guessing it is a fixed rate.

My concern is how quickly/easily can Everton get their section of the funding sorted. With Moshiri's background and finances i'd hope he'd be well capable of sorting that part out soon.

 

[liamefc91]

The thing is the stadium will only be open for business at year five. I am thinking then there is no return on investment
for five years seems a strange way to fund this.

What does that mean mate? Year 5?

 

[GwladysBlue]

What does that mean mate? Year 5?

While construction is ongoing, it won’t be making any money.

 

[EFC78]

There's been almost half a billion quid LCC have had slashed from their budgets since 2010. Anderson proposes loaning £270M to a football club on the strength of raising *upwards* of £10M a year back in payments.

Does that sound like a great idea to you?

It sounds nuts to me.

Dave, can you please explain what it is you are concerned about in the proposed deal? Genuine question, and not saying you have no right to be concerned, I am just trying to see it from the other point of view. It seems to me that concerns are based on catastrophic (and to be honest - unrealistic) events happening to the Football Club.

 

[MartSlinger]

Dave, can you please explain what it is you are concerned about in the proposed deal? Genuine question, and not saying you have no right to be concerned, I am just trying to see it from the other point of view. It seems to me that concerns are based on catastrophic (and to be honest - unrealistic) events happening to the Football Club.

Dave just wants it to fail so that he's got a stick to beat the Club with. He's never happy unless he's moaning.

 

[Pootsy]

Dave just wants it to fail so that he's got a stick to beat the Club with. He's never happy unless he's moaning.

There aren't too many unused sticks in @davek s closet though. While it pains me to say it, the man is correct a high percentage of the time.

During the construction would the funds from the sale of Goodison not facilitate the Council or is the Goodison Park footprint being given back to the Council as a goodwill gesture to help facilitate the loan?

 

[Efcjake]

That was the original model announced a while ago. The situation has definitely changed. The Council will be taking out the loan now themselves and passing the money to Everton for a healthy fee. See here:
http://www.liverpoolecho.co.uk/news/liverpool-news/liverpool-council-loan-everton-millions-14136195

Wow Joe is actually making the Kopites pay for it. I concede @davek.


I'm actually shocked.

 

[liamefc91]

While construction is ongoing, it won’t be making any money.

Ah right, Everton wont be paying back the loan untill the stadium is open?

But.. during the construction stage companys will be using the city for all sorts and plus work for people of Liverpool. That is how the mayor is going to put it i’d suspect.

 

[The binman chronicles]

The thing is the stadium will only be open for business at year five. I am thinking then there is no return on investment
for five years seems a strange way to fund this.

Who says we won't start paying back as soon as the funds are released? (they may not release the whole lot in one go through, depends what the contract is with the builders)

 

[Connor]

Wow Joe is actually making the Kopites pay for it. I concede @davek.


I'm actually shocked.

No one is paying for it except the club - over an agreed amount time, said to be 25 years - with the council making a nice little profit on top, J.

 

[EFC78]

Couple of little titbits.
Cabinet were completely unaware of the change of plan with the funding model - Joe blindsided them with that. So that's not going to help matters.

On this bit, surely Joe has a pretty good idea on how likely this is to be passed by the Cabinet though. Doubt he'd change the game plan without considering how likely it is to get passed. I'm sure he'll be able to sell the idea to them.

 

[LouReedwalkonthewildside]

Someone on the Roger Phillips phone in raised a point that I was interested in. He asked about whether the interest rate is a fixed rate for the whole period or could it change? Guessing it is a fixed rate.

My concern is how quickly/easily can Everton get their section of the funding sorted. With Moshiri's background and finances i'd hope he'd be well capable of sorting that part out soon.

Worryingly you would have hoped by now we would have had most of it in place and the council loan was the final piece of the jigsaw.

 

[nsno-chris]

On this bit, surely Joe has a pretty good idea on how likely this is to be passed by the Cabinet though. Doubt he'd change the game plan without considering how likely it is to get passed. I'm sure he'll be able to sell the idea to them.

The problem with Fat Joe is he says a lot of things, a lot...these are to appease the necessary parties. He said the city would build new ferries and they’d be built in Birkenhead, until someone reminded of the EU procurement rules.

He thinks he runs the city solely, if anyone wants to stick the fork into him then this will be the perfect opportunity....and there’s a lot of infighting at LCC political towers

 

[CRIMHEAD]

While construction is ongoing, it won’t be making any money.

They'll be paying the second the vehicle is set up in addition to the rent they are paying already on the site