onlyme
Player Valuation: £10m
Didn't they buy it outright when they were bought out by a dodgy oil state ?
New Everton Stadium
- Thread starter D410
- Start date
Toffeeslam
Player Valuation: £35m
We will end up owning it once it’s all paid off, City has a rental agreement which is weird considering how much though their owners have.
roydo
in memoriam - 1965-2024
Tax deductable or summet.
..I remember posting this would happen years ago when this was first mentioned. Nothing was more certain.
roydo
in memoriam - 1965-2024
Kites and boats spring to mind.
I know, that is even worse as their city council have forked out the capital to pay for it, LCC wont be paying up front, just passing on a loan and creaming off some interest for doing so.
kithnou
Player Valuation: £70m
Great stuff again from our @The Esk ...
https://theesk.org/2018/01/11/update-on-bramley-moore-financing-following-annual-general-meeting/
Update on Bramley Moore financing following Annual General meeting
This article focuses on the Bramley Moore stadium and the details provided regarding the proposed funding arrangements.
I suppose the first thing to say is that it is clear that there are still a huge number of variables, many beyond the control of the club, so pinpointing precise numbers is all but impossible. However, it is possible to make some observations about where we stand now.
Back in March (covered in detail here) the City Council announced a heads of terms agreement with Everton Football Club essentially offering to guarantee £300 million over 40 years to assist the building of the Bramley Moore stadium. In doing so, a SPV would be created holding a 200 year lease, the first 40 years sub-let to Everton with the club then having the option to pick up the remaining 160 years of the original lease. Everton had to find the funding and the City Council would provide a financial guarantee in return for receiving a fee around £4.5 million a year. The City Council would have a charge over all of Everton’s assets and income in the event of default.
The first real sign that this might not be the case came in late November with the news that Everton announced the exchanging of contracts between Everton Stadium Development Limited (ESDL) and Peel Land and Property (Ports) Limited for a 200 year lease on the Bramley Moore site. This is covered in detail here.
At the Everton shareholders’ Annual General Meeting on Tuesday evening (9th January), Robert Elstone, CEO Everton announced that “2/3rds of the funding” required for the stadium had been agreed in principle with Liverpool City Council. Therefore, no longer would they (LCC) act as guarantors but they would be the lenders, the providers of finance for a significant proportion of the monies required for our new stadium.
Everton would still be required to provide (or find) the remaining finance.
Mayor Joe Anderson also spoke at the AGM confirming this, subject to Cabinet and full Council approval plus all the usual caveats about due diligence etc. He also spoke at great length about the advantages to the City, revenue for the Council, and the positive effect the stadium will have on the regeneration of the North Liverpool area, the acceleration of the Liverpool Waters project and the City as a whole.
Further details from Mayor Joe Anderson
In numerous press and media calls yesterday (Wednesday 10th January) Joe Anderson went further with his details confirming £280 million of funding over 25 years. This would create an annual profit of £7 million for the Council.
As lender, the Council would face no greater financial risk than being guarantor, yet the potential income or profit increases significantly.
It’s worth summarizing the change in the Council’s offer to Everton:
Council role Amount Term Annual Council Income*
March 2017 Guarantor £300 million 40 years £4.5 million
January 2018 Lender £280 million 25 years £7.0 million
*estimated
The City Council, as do all local authorities, have its own borrowing sources allowing borrowing for capital projects and increasingly in recent years, development work to assist regional development and generate income for councils. The Council therefore would borrow £280 million, lend it to Everton and receive a profit from the difference in interest rates charged and paid.
From the information provided by Joe Anderson, it suggests an interest rate differential of around 4.2 % over the course of 25 years – it will be interesting to see what ultimately the figure will be, and thus the cost to Everton.
By doing this Liverpool City Council significantly improve the terms of their original offer to Everton in March 2017.
As a result their financial exposure is smaller (£280m v £300m), their time exposure shorter (25 years v 40 years) and their income greater (£7 million v £4.5 million).
Of course, it has to be said this is still subject to agreement by the Liverpool City Council, due diligence and finally acceptance of the terms by Everton.
The remaining funding – further equity investment from Moshiri?
In further comments yesterday from Mayor Joe Anderson it was mentioned that Everton would be looking at equity, possible debt and any contribution from the appropriate naming rights partners to meet the remaining costs of the stadium. It is understood that Mr Moshiri may contribute a further £150 million in equity. The remaining amounts required can not be commented on publicly given the huge variables including inflation, fit out detail, technology, infrastructure and any other development expenditure. It should be noted that at the AGM, Bill Kenwright suggested costs in the order of £500 million.
Financial impact on Everton?
Borrowing directly from the City Council should prove no more expensive than the original option of borrowing from an alternative source with a guarantee provided by the same. The major change, and therefore impact on cash flow through higher annual repayments is the shortened term of 25 years versus 40. However in the long term that is a considerable saving, and the annual servicing costs remain a lower amount than the increase in turnover arising from a new stadium.
Benefits to the City
There’s no doubt that the Council providing funding is viewed as controversial by some. However the reality is that Councils are forced to be more creative in generating income to meet Central Government cuts in order to continue essential services.
It is also an inescapable fact that a huge development like Bramley Moore Stadium would drive the redevelopment of North Liverpool and the Liverpool Waters bringing in much needed investment and jobs.
However ultimately it is the vision and desire shown by Everton that creates the opportunity for Liverpool City Council to generate income for itself and for the club to be the cornerstone of an enormous redevelopment and regeneration project.
On the basis this arrangement is comparable in cost to other lending alternatives elsewhere,then this is a fabulous deal for the club. It cements our role, and my belief as the senior club in the City. It, and all the other development work, redevelopment of Goodison, extension of Finch Farm, and corporate headquarters in the Royal Liver Buildings demonstrates our commitment to our City.
The additional funding required to complete the stadium, most likely provided by a further equity injection by Mr Moshiri demonstrates his commitment to the club, and thus the City. We should always be proud of our past, how we have represented the best of the City, now we can more than ever, contribute to its regeneration and future development, whilst most importantly having a club positioned to win trophies with the development of Bramley Moore.
https://theesk.org/2018/01/11/update-on-bramley-moore-financing-following-annual-general-meeting/
Update on Bramley Moore financing following Annual General meeting
This article focuses on the Bramley Moore stadium and the details provided regarding the proposed funding arrangements.
I suppose the first thing to say is that it is clear that there are still a huge number of variables, many beyond the control of the club, so pinpointing precise numbers is all but impossible. However, it is possible to make some observations about where we stand now.
Back in March (covered in detail here) the City Council announced a heads of terms agreement with Everton Football Club essentially offering to guarantee £300 million over 40 years to assist the building of the Bramley Moore stadium. In doing so, a SPV would be created holding a 200 year lease, the first 40 years sub-let to Everton with the club then having the option to pick up the remaining 160 years of the original lease. Everton had to find the funding and the City Council would provide a financial guarantee in return for receiving a fee around £4.5 million a year. The City Council would have a charge over all of Everton’s assets and income in the event of default.
The first real sign that this might not be the case came in late November with the news that Everton announced the exchanging of contracts between Everton Stadium Development Limited (ESDL) and Peel Land and Property (Ports) Limited for a 200 year lease on the Bramley Moore site. This is covered in detail here.
At the Everton shareholders’ Annual General Meeting on Tuesday evening (9th January), Robert Elstone, CEO Everton announced that “2/3rds of the funding” required for the stadium had been agreed in principle with Liverpool City Council. Therefore, no longer would they (LCC) act as guarantors but they would be the lenders, the providers of finance for a significant proportion of the monies required for our new stadium.
Everton would still be required to provide (or find) the remaining finance.
Mayor Joe Anderson also spoke at the AGM confirming this, subject to Cabinet and full Council approval plus all the usual caveats about due diligence etc. He also spoke at great length about the advantages to the City, revenue for the Council, and the positive effect the stadium will have on the regeneration of the North Liverpool area, the acceleration of the Liverpool Waters project and the City as a whole.
Further details from Mayor Joe Anderson
In numerous press and media calls yesterday (Wednesday 10th January) Joe Anderson went further with his details confirming £280 million of funding over 25 years. This would create an annual profit of £7 million for the Council.
As lender, the Council would face no greater financial risk than being guarantor, yet the potential income or profit increases significantly.
It’s worth summarizing the change in the Council’s offer to Everton:
Council role Amount Term Annual Council Income*
March 2017 Guarantor £300 million 40 years £4.5 million
January 2018 Lender £280 million 25 years £7.0 million
*estimated
The City Council, as do all local authorities, have its own borrowing sources allowing borrowing for capital projects and increasingly in recent years, development work to assist regional development and generate income for councils. The Council therefore would borrow £280 million, lend it to Everton and receive a profit from the difference in interest rates charged and paid.
From the information provided by Joe Anderson, it suggests an interest rate differential of around 4.2 % over the course of 25 years – it will be interesting to see what ultimately the figure will be, and thus the cost to Everton.
By doing this Liverpool City Council significantly improve the terms of their original offer to Everton in March 2017.
As a result their financial exposure is smaller (£280m v £300m), their time exposure shorter (25 years v 40 years) and their income greater (£7 million v £4.5 million).
Of course, it has to be said this is still subject to agreement by the Liverpool City Council, due diligence and finally acceptance of the terms by Everton.
The remaining funding – further equity investment from Moshiri?
In further comments yesterday from Mayor Joe Anderson it was mentioned that Everton would be looking at equity, possible debt and any contribution from the appropriate naming rights partners to meet the remaining costs of the stadium. It is understood that Mr Moshiri may contribute a further £150 million in equity. The remaining amounts required can not be commented on publicly given the huge variables including inflation, fit out detail, technology, infrastructure and any other development expenditure. It should be noted that at the AGM, Bill Kenwright suggested costs in the order of £500 million.
Financial impact on Everton?
Borrowing directly from the City Council should prove no more expensive than the original option of borrowing from an alternative source with a guarantee provided by the same. The major change, and therefore impact on cash flow through higher annual repayments is the shortened term of 25 years versus 40. However in the long term that is a considerable saving, and the annual servicing costs remain a lower amount than the increase in turnover arising from a new stadium.
Benefits to the City
There’s no doubt that the Council providing funding is viewed as controversial by some. However the reality is that Councils are forced to be more creative in generating income to meet Central Government cuts in order to continue essential services.
It is also an inescapable fact that a huge development like Bramley Moore Stadium would drive the redevelopment of North Liverpool and the Liverpool Waters bringing in much needed investment and jobs.
However ultimately it is the vision and desire shown by Everton that creates the opportunity for Liverpool City Council to generate income for itself and for the club to be the cornerstone of an enormous redevelopment and regeneration project.
On the basis this arrangement is comparable in cost to other lending alternatives elsewhere,then this is a fabulous deal for the club. It cements our role, and my belief as the senior club in the City. It, and all the other development work, redevelopment of Goodison, extension of Finch Farm, and corporate headquarters in the Royal Liver Buildings demonstrates our commitment to our City.
The additional funding required to complete the stadium, most likely provided by a further equity injection by Mr Moshiri demonstrates his commitment to the club, and thus the City. We should always be proud of our past, how we have represented the best of the City, now we can more than ever, contribute to its regeneration and future development, whilst most importantly having a club positioned to win trophies with the development of Bramley Moore.
Jacko93
Player Valuation: £35m
It's a ridiculous idea. Why would any individual do that? Say I buy my seat, I buy it for 15 years at £550 a year or similar. The cost is no longer the seat but also the interest on the loan. Then there the fact that a lot can happen in that time, have children, they grow up and what to come as well. I'd have to buy them a seat. If you go with your partner, double the loan. All you'd get is businesses buying them and selling them on at inflated prices. Imo
kithnou
Player Valuation: £70m
If Moshiri were to do this , then he is something special...Great stuff again from our @The Esk ...
https://theesk.org/2018/01/11/update-on-bramley-moore-financing-following-annual-general-meeting/
Update on Bramley Moore financing following Annual General meeting
This article focuses on the Bramley Moore stadium and the details provided regarding the proposed funding arrangements.
I suppose the first thing to say is that it is clear that there are still a huge number of variables, many beyond the control of the club, so pinpointing precise numbers is all but impossible. However, it is possible to make some observations about where we stand now.
Back in March (covered in detail here) the City Council announced a heads of terms agreement with Everton Football Club essentially offering to guarantee £300 million over 40 years to assist the building of the Bramley Moore stadium. In doing so, a SPV would be created holding a 200 year lease, the first 40 years sub-let to Everton with the club then having the option to pick up the remaining 160 years of the original lease. Everton had to find the funding and the City Council would provide a financial guarantee in return for receiving a fee around £4.5 million a year. The City Council would have a charge over all of Everton’s assets and income in the event of default.
The first real sign that this might not be the case came in late November with the news that Everton announced the exchanging of contracts between Everton Stadium Development Limited (ESDL) and Peel Land and Property (Ports) Limited for a 200 year lease on the Bramley Moore site. This is covered in detail here.
At the Everton shareholders’ Annual General Meeting on Tuesday evening (9th January), Robert Elstone, CEO Everton announced that “2/3rds of the funding” required for the stadium had been agreed in principle with Liverpool City Council. Therefore, no longer would they (LCC) act as guarantors but they would be the lenders, the providers of finance for a significant proportion of the monies required for our new stadium.
Everton would still be required to provide (or find) the remaining finance.
Mayor Joe Anderson also spoke at the AGM confirming this, subject to Cabinet and full Council approval plus all the usual caveats about due diligence etc. He also spoke at great length about the advantages to the City, revenue for the Council, and the positive effect the stadium will have on the regeneration of the North Liverpool area, the acceleration of the Liverpool Waters project and the City as a whole.
Further details from Mayor Joe Anderson
In numerous press and media calls yesterday (Wednesday 10th January) Joe Anderson went further with his details confirming £280 million of funding over 25 years. This would create an annual profit of £7 million for the Council.
As lender, the Council would face no greater financial risk than being guarantor, yet the potential income or profit increases significantly.
It’s worth summarizing the change in the Council’s offer to Everton:
Council role Amount Term Annual Council Income*
March 2017 Guarantor £300 million 40 years £4.5 million
January 2018 Lender £280 million 25 years £7.0 million
*estimated
The City Council, as do all local authorities, have its own borrowing sources allowing borrowing for capital projects and increasingly in recent years, development work to assist regional development and generate income for councils. The Council therefore would borrow £280 million, lend it to Everton and receive a profit from the difference in interest rates charged and paid.
From the information provided by Joe Anderson, it suggests an interest rate differential of around 4.2 % over the course of 25 years – it will be interesting to see what ultimately the figure will be, and thus the cost to Everton.
By doing this Liverpool City Council significantly improve the terms of their original offer to Everton in March 2017.
As a result their financial exposure is smaller (£280m v £300m), their time exposure shorter (25 years v 40 years) and their income greater (£7 million v £4.5 million).
Of course, it has to be said this is still subject to agreement by the Liverpool City Council, due diligence and finally acceptance of the terms by Everton.
The remaining funding – further equity investment from Moshiri?
In further comments yesterday from Mayor Joe Anderson it was mentioned that Everton would be looking at equity, possible debt and any contribution from the appropriate naming rights partners to meet the remaining costs of the stadium. It is understood that Mr Moshiri may contribute a further £150 million in equity. The remaining amounts required can not be commented on publicly given the huge variables including inflation, fit out detail, technology, infrastructure and any other development expenditure. It should be noted that at the AGM, Bill Kenwright suggested costs in the order of £500 million.
Financial impact on Everton?
Borrowing directly from the City Council should prove no more expensive than the original option of borrowing from an alternative source with a guarantee provided by the same. The major change, and therefore impact on cash flow through higher annual repayments is the shortened term of 25 years versus 40. However in the long term that is a considerable saving, and the annual servicing costs remain a lower amount than the increase in turnover arising from a new stadium.
Benefits to the City
There’s no doubt that the Council providing funding is viewed as controversial by some. However the reality is that Councils are forced to be more creative in generating income to meet Central Government cuts in order to continue essential services.
It is also an inescapable fact that a huge development like Bramley Moore Stadium would drive the redevelopment of North Liverpool and the Liverpool Waters bringing in much needed investment and jobs.
However ultimately it is the vision and desire shown by Everton that creates the opportunity for Liverpool City Council to generate income for itself and for the club to be the cornerstone of an enormous redevelopment and regeneration project.
On the basis this arrangement is comparable in cost to other lending alternatives elsewhere,then this is a fabulous deal for the club. It cements our role, and my belief as the senior club in the City. It, and all the other development work, redevelopment of Goodison, extension of Finch Farm, and corporate headquarters in the Royal Liver Buildings demonstrates our commitment to our City.
The additional funding required to complete the stadium, most likely provided by a further equity injection by Mr Moshiri demonstrates his commitment to the club, and thus the City. We should always be proud of our past, how we have represented the best of the City, now we can more than ever, contribute to its regeneration and future development, whilst most importantly having a club positioned to win trophies with the development of Bramley Moore.
"In further comments yesterday from Mayor Joe Anderson it was mentioned that Everton would be looking at equity, possible debt and any contribution from the appropriate naming rights partners to meet the remaining costs of the stadium. It is understood that Mr Moshiri may contribute a further £150 million in equity."
Jacko93
Player Valuation: £35m
If they receive a lump sum for the stadium, they have to repay the Govt and Europe the money that was given to them. That's why they rent It, so the MCC can keep the funds to put into the local economy. City could buy the ground tomorrow if they wanted, but it suits both parties if they don't.
Moshiri doesn't have £150 million to lob in. His 'wealth' is in shares. The money he did have was from his Arsenal payoff.
Maybe he is and Davek was wrong all along
He sold shares to Usmanov to get the cash to buy Everton for himself cough cough
Maybe he will do the same again.
Sometimes it’s OK to send a boy to do a mans job
davek
Player Valuation: £150m
You dont get into debt if you can afford it. It's difficult to hazard a guess at numbers taking that ESR option up, but I'm guessing there'd be a fair few people in a position to be able to commit to annual payment's to eventually see ownership of a seat they can pass on to someone else in the family perhaps. In North America they have Personal Seat License system where a sum of cash is paid to retain the right to a season ticket for the same seat, which is a debenture system I suppose.
In any case this was not an idea to say "replace LCC's loan with ESR", I'm suggesting there might be a funding mix of different sources that could work better for the club and avoid the political fall out the current plan has attached to it.
davek
Player Valuation: £150m
Might help if you read the last sentence.