New Everton Stadium

[Tin-Tin]

The Council are borrowing money from a Central Government pot, which Everton will pay £6m-£7m interest on every year for 25 years, interest which goes back to the council.

As a result 100 per cent of the cost of the stadium will be paid for by Everton - while the City Council will receive £162m which can be used for vital services - money which wouldn’t otherwise have been generated.

Mayor Anderson learned that the government’s Public Works Loan Board exists to loan money for capital projects which benefit the general public. And it has been doing so since 1793.

The Public Works Loan Board will loan the council £280m, Everton will then repay the Council over 25 years, generating £6m-£7m of interest every year for the city's public.

Everton get a new stadium, an area of North Liverpool is regenerated - and Liverpool City Council get £162m to spend on pot-holes, libraries and vital services.

All without having to go near anybody’s council tax.

 

[Tin-Tin]

Plus

Everton FC has had to provide a “security package” as part of the deal to ensure that the SPV always gets paid.

It will have to create new bank accounts into which certain club income streams will be paid. If the SPV doesn’t get its rent, it can dip into those protected accounts.

The Mayor said: “Liverpool Council will have first take on season tickets, on the players themselves, on the naming rights, on the ownership of the stadium and of the television rights.”

 

[bennyhaha]

Plus

Everton FC has had to provide a “security package” as part of the deal to ensure that the SPV always gets paid.

It will have to create new bank accounts into which certain club income streams will be paid. If the SPV doesn’t get its rent, it can dip into those protected accounts.

The Mayor said: “Liverpool Council will have first take on season tickets, on the players themselves, on the naming rights, on the ownership of the stadium and of the television rights.”

The deal with the council is a no-brainer when you look at the details, it is literally a 'win-win' with very little risk to the council. The only issue with what you have described above is that it will make the financing for the other £220m from the commercial markets MUCH more expensive if all the security is allocated to the council. It's the yearly repayments and how they stack up compared to increased revenue that is the crux of the issue for the club, and the reason I think things have gone a little quiet. Waiting up to 25 years to be able to spend like the big boys will mean 25 years of them getting further ahead - more money is generated by being successful than having the world's fanciest stadium.

 

[mahermi1]

I don't think the specifics of the deal are the problem. The issue is that the council is involved in assisting the build of a football stadium at the same time as food banks being an actual thing

Don't remember any talk of potholes or food banks when this same council was bending over backwards to give Liverpool fc Stanley Park or making people take compulsory purchase orders to sell their houses, to increase the size or their centenary stand. Give it a rest mate.

 

[Market trader]

Of course it is a loan; it's from the Public Works Loan Board. To fund it, the government has to borrow the money to lend to the council, and that reduces what the government can borrow for its own purposes. (Expect it to be cut back for that reason and because councils are fuelling a publicly funded property boom. See Room 101.)

That should be Room 151 not Room 101 (which was my office number at one point.)

 

[AsiaAsia82]

No, the members of the council have to balance possible benefits against possible risks. We know some of the risks - relegation, reduction in Sky money, recession because of Brexit, trade wars or even real wars, and risks we don't know about yet.

The Council will have to borrow £280m at 2.6% and pay back around £380m or £15 million a year. The debt is the Council's debt. If the club fails to pay the Council has to pay the debt even if the club goes out of existence. (Heaven forbid.) The Council might even have to cut services as the debt must be paid off.

It's a risk for the Council.

I recognise your points but the council will have a physical asset on one of the most modern developments in the country, based on one of the most popular industries in the world. It's a win win, as a city we need these local generated benefits and not depend on central government handouts.
Reep the benefits locally, and spend locally

 

[Jacko93]

The deal with the council is a no-brainer when you look at the details, it is literally a 'win-win' with very little risk to the council. The only issue with what you have described above is that it will make the financing for the other £220m from the commercial markets MUCH more expensive if all the security is allocated to the council. It's the yearly repayments and how they stack up compared to increased revenue that is the crux of the issue for the club, and the reason I think things have gone a little quiet. Waiting up to 25 years to be able to spend like the big boys will mean 25 years of them getting further ahead - more money is generated by being successful than having the world's fanciest stadium.

I wouldn't be surprised if that had been the issue with sourcing the remaining finding. Anderson said in the latest podcast that Everton may be seeking other funding sources, It could work out cheaper for us to balance risk across all funders and pay lower rates on average.

 

[PKwalnuts]

Evertonians Cry - We’ve no money to spend we can’t compete.
Moshiri comes in and we regularly splash 25+ million on talents we can attract - still not happy and let’s all be negative

Evertonians Cry - We’ve got a crooked ownership doing dodgy deals putting the club in debt with payback based on future season ticket sales and it’s restricting our ability to compete financially
Moshiri comes in and clears the debt allowing us to become a more attractive investment enabling training ground sponsorship as a starter ahead of end of contract renegotiations for all commercial deals - still not happy and let’s all be negative

Evertonian’s Cry - We have no confidence in Kenwright and Elstone and they need to let go of the club and move on
Moshiri comes in and becomes largest single share owner with options to become the majority shareholder and Elstone is replaced in a Business like and professional way, as will Mr Bill in due time - still not happy and let’s all be negative

Evertonians Cry - Martinez is no good, too defensively naive and pass pass stubborn, and his interviews are unrelateable with his undeserved superlatives of our better unproven players, who are given chances unlike the previous Moyes years filled with strict, bargain hunting, survivalism perpetuating the underdog and glass ceiling capability of the squad to dampen supporter expectations and make us all grateful for seventh heaven.
Moshiri comes in and pays for Koeman, world class name, doesn’t work after 18 months, pays him off, gets a Defensive Dinosaur for 6 months on extortion contract, but league position recovery achieved if inevitable in poor season anyway, but requires third manager payoff in tenure, whilst planning for more innovative, fresh, coach and DoF model, to orchestrate removal of deadwood from previous failed regimes, and to promote and improve our clearly talented youth set up academy graduates - still not happy and let’s all be negative.

Evertonians Cry - we’re not moving to Kirby, Kings Dock was the one, should be right on the dock in our city, senior club and all that, but clearly no money to fund the capital required to convince lenders we can sustain repayments on any such loan required to fund such project.
Moshiri comes in and over 18 months BMD is purchased, funding and planning details are close, Stadium architect hosts workshops providing clear plans that demonstrate the initial thinking to show close to pitch, steep stands with views of the city and the Mersey, with a huge home end dwarfing similar renowned ends in the league, but as things aren’t moving quick as thought, and snippets demonstrating lots of options to still explore to ensure the best option for the club and its supporters is finalised, that all the Internet Warriors who know football and football and stadium financing better than anyone, have the platform to denounce the likelihood of it happening and caveating that if it does go ahead that it won’t be what it should be, whilst forgetting how dire 3/4 years ago we could go an entire preseason knowing we wouldn’t have the money to fund a transfer let alone, give Goodison a lick of paint, nevermind cladding, banners promoting our history wrapped around, new illuminated badge, new Goodison sign on park end and Light pillars to make the Stadium slightly less 2nd division in a UltraHD Global viewing TV world. - Still not happy and let’s all be negative.

Best fans in the world us. Loads go. Loads don’t. But can we get behind anything together - Nope. Whether it’s the capacity we think we should have, we err on the negative or whether it’s lads trying to get atmosphere going and encourage banners and singing sections for standing, arlarses won’t budge.

Nil Satis Nisi Optimum, can’t be used against the club until our own fan mentality believes it too.

Whatever happens, we’ll bottle it, screw it up, won’t go through, won’t get this, won’t get that.

Years of it prior so I understand - but if you can’t see the transition that has taken place and start to believe this club is on the up and get behind it - then we don’t deserve nice things.

 

[Huyton Layne]

The Council are borrowing money from a Central Government pot, which Everton will pay £6m-£7m interest on every year for 25 years, interest which goes back to the council.

As a result 100 per cent of the cost of the stadium will be paid for by Everton - while the City Council will receive £162m which can be used for vital services - money which wouldn’t otherwise have been generated.

Mayor Anderson learned that the government’s Public Works Loan Board exists to loan money for capital projects which benefit the general public. And it has been doing so since 1793.

The Public Works Loan Board will loan the council £280m, Everton will then repay the Council over 25 years, generating £6m-£7m of interest every year for the city's public.

Everton get a new stadium, an area of North Liverpool is regenerated - and Liverpool City Council get £162m to spend on pot-holes, libraries and vital services.

All without having to go near anybody’s council tax.

This is the thing people seem to ignore. The Homeless won't pay any money spent on them, the potholes won't pay back any money spent on them, Everton are not only paying the money back they receive but also paying a huge sum of money back on top of the money received. Also it's not coming from a pool of money that can be used for dealing with homeless or road maintenance. There's a lot of uneducated necks in the city that need winding in and some heads that need to spend time reading and researching before spouting absolute balls.

 

[anton66]

Evertonians Cry - We’ve no money to spend we can’t compete.
Moshiri comes in and we regularly splash 25+ million on talents we can attract - still not happy and let’s all be negative

Evertonians Cry - We’ve got a crooked ownership doing dodgy deals putting the club in debt with payback based on future season ticket sales and it’s restricting our ability to compete financially
Moshiri comes in and clears the debt allowing us to become a more attractive investment enabling training ground sponsorship as a starter ahead of end of contract renegotiations for all commercial deals - still not happy and let’s all be negative

Evertonian’s Cry - We have no confidence in Kenwright and Elstone and they need to let go of the club and move on
Moshiri comes in and becomes largest single share owner with options to become the majority shareholder and Elstone is replaced in a Business like and professional way, as will Mr Bill in due time - still not happy and let’s all be negative

Evertonians Cry - Martinez is no good, too defensively naive and pass pass stubborn, and his interviews are unrelateable with his undeserved superlatives of our better unproven players, who are given chances unlike the previous Moyes years filled with strict, bargain hunting, survivalism perpetuating the underdog and glass ceiling capability of the squad to dampen supporter expectations and make us all grateful for seventh heaven.
Moshiri comes in and pays for Koeman, world class name, doesn’t work after 18 months, pays him off, gets a Defensive Dinosaur for 6 months on extortion contract, but league position recovery achieved if inevitable in poor season anyway, but requires third manager payoff in tenure, whilst planning for more innovative, fresh, coach and DoF model, to orchestrate removal of deadwood from previous failed regimes, and to promote and improve our clearly talented youth set up academy graduates - still not happy and let’s all be negative.

Evertonians Cry - we’re not moving to Kirby, Kings Dock was the one, should be right on the dock in our city, senior club and all that, but clearly no money to fund the capital required to convince lenders we can sustain repayments on any such loan required to fund such project.
Moshiri comes in and over 18 months BMD is purchased, funding and planning details are close, Stadium architect hosts workshops providing clear plans that demonstrate the initial thinking to show close to pitch, steep stands with views of the city and the Mersey, with a huge home end dwarfing similar renowned ends in the league, but as things aren’t moving quick as thought, and snippets demonstrating lots of options to still explore to ensure the best option for the club and its supporters is finalised, that all the Internet Warriors who know football and football and stadium financing better than anyone, have the platform to denounce the likelihood of it happening and caveating that if it does go ahead that it won’t be what it should be, whilst forgetting how dire 3/4 years ago we could go an entire preseason knowing we wouldn’t have the money to fund a transfer let alone, give Goodison a lick of paint, nevermind cladding, banners promoting our history wrapped around, new illuminated badge, new Goodison sign on park end and Light pillars to make the Stadium slightly less 2nd division in a UltraHD Global viewing TV world. - Still not happy and let’s all be negative.

Best fans in the world us. Loads go. Loads don’t. But can we get behind anything together - Nope. Whether it’s the capacity we think we should have, we err on the negative or whether it’s lads trying to get atmosphere going and encourage banners and singing sections for standing, arlarses won’t budge.

Nil Satis Nisi Optimum, can’t be used against the club until our own fan mentality believes it too.

Whatever happens, we’ll bottle it, screw it up, won’t go through, won’t get this, won’t get that.

Years of it prior so I understand - but if you can’t see the transition that has taken place and start to believe this club is on the up and get behind it - then we don’t deserve nice things.

It’s all going to end in tears.

 

[Market trader]

Part of the deal is Everton have to take out insurance policy to cover any failure to pay.

Have you a source for this?

 

[Tin-Tin]

Have you a source for this?

Its at the top of this page.

 

[Market trader]

Its at the top of this page.

Thanks for that but that is not insurance in the usual sense of the word, but a device to ensure payment by the club. Insurance would pay out if the club couldn't trade; this wouldn't.

Secondly, is there an SPV? Do we pay rent? Or is it a straight loan by the council with the money lent to the club and the club making the payments plus the £7m extra. I wonder if what you describe was the first version rather than the current model.

 

[jaycee]

Thanks for that but that is not insurance in the usual sense of the word, but a device to ensure payment by the club. Insurance would pay out if the club couldn't trade; this wouldn't.

Secondly, is there an SPV? Do we pay rent? Or is it a straight loan by the council with the money lent to the club and the club making the payments plus the £7m extra. I wonder if what you describe was the first version rather than the current model.

Im pretty sure there would be some sort of insurance involved,though nobody knows the full details of how the deal will be structured you have to use guess work piecing together what the local rag says and what Anderson is saying,thats the point I made earlier is that the only info is coming from the mayor

 

[Market trader]

I think the Mayor should make statements as he is an elected official with responsibility to keep people informed about major issues. At least people can't say later, that they didn't know what was going on.