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New Everton Stadium

Adversus said:
No it wouldn't the 70m-80m deposit would come from the additional 25m a year we're getting from the TV deal. That size of deposit would allow us to get the loan for 120m over 20 years.
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And as a result our playing squad would deteriorate on a relative basis.

Our greatest currency is capital, the sole focus of the Board should be to recapitalise the business. Then we can progress.

Everything else is noise (which probably suits the current Board).
 
Adversus said:
The 70m-80m deposit would come from the additional 25m a year we're getting from the TV deal. That size of deposit would allow us to get the loan for 120m over 20 years.
Click to expand...

Clearly some of the TV money could be used to finance an expansion or relocation, but it isn't as simple as banking 25m per year. The reality is the TV money has put Everton in a temporarily stable financial situation, but it isn't a cure all. Outside financing is necessary and that will require a deal that anticipates more than football. That takes time and planning and creativity, which to date have failed.

The club needs to take advantage of the increase in cash flow while it can without creating future exposure. The recent increase in spending is probably the best we can hope for in the short term.
 
the esk said:
And as a result our playing squad would deteriorate on a relative basis.

Our greatest currency is capital, the sole focus of the Board should be to recapitalise the business. Then we can progress.

Everything else is noise (which probably suits the current Board).
Click to expand...
Stop saying the same things over again. There's no reason they would since our first 11 is so young but even if they did. We would perhaps go from 7th to 9th. Is that really a good enough reason to sacrifice the one chance we've had this decade to get the stadium built and instead aim for a fool's errand of breaking into the top 4 by trying to outspend the likes of the current top 4 who can spend 50m on one player.
 
Hellerad said:
Clearly some of the TV money could be used to finance an expansion or relocation, but it isn't as simple as banking 25m per year. The reality is the TV money has put Everton in a temporarily stable financial situation, but it isn't a cure all. Outside financing is necessary and that will require a deal that anticipates more than football. That takes time and planning and creativity, which to date have failed.

The club needs to take advantage of the increase in cash flow while it can without creating future exposure. The recent increase in spending is probably the best we can hope for in the short term.
Click to expand...
We were already in a stable position before the TV money. We made a profit last year and I think the year before.

We could bank the whole lot and there's your deposit. No need for outside finance which lets be honest is never never going to happen.
 

the esk said:
I'm saying the same thing over and over because what I suggest is the only viable option.

Without an injection of capital we are just speculating, nothing can happen.
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I've presented a plan that financially makes sense. I also think it's a plan that the current board are probably proceeding with. Let's hope so for the club's long term viability.
 
Adversus said:
I've presented a plan that financially makes sense. I also think it's a plan that the current board are probably proceeding with. Let's hope so for the club's long term viability.
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They've probably spent an hour or two concocting media releases and that's about it. Sad fact is you've probably spent more time on this subject than the board have.
 

the esk said:
Mate with respect you are totally wrong. I have already demonstrated that even if Everton borrowed money over 30 years it would make no difference to the clubs cash position +/- £1 million per annum (based on an average attendance of 50,000 and 30 executive boxes sold out every game)

Without an injection of capital we will go backwards. The stadium and our commercial performance are red herrings.
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One problem Mr Esk is that the current stadium has got a finite lifespan. I have no idea how long it will continue to get safety certificates etc, but every year brings refusals ever closer.
Surely that has to be factored in to the equation?
 
Visitor22 said:
How much do you reckon is needed?
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It's a very good question!

Really depends upon what the future holds re ground redevelopment or move.

Firstly we need to pay off existing debt including the remaining long term loan and the annual advance. Assuming that 2014/15 we have a small operating profit, I'd reckon on £25 million required.

Then the stadium - at least £100 million for redevelopment. Difficult to say for new stadium as we do not know costs and contributions from other sources, but not less than the above.

Then investment in the team - how much?

So a minimum of £125 million plus team development funds...
 
blueboy1945 said:
One problem Mr Esk is that the current stadium has got a finite lifespan. I have no idea how long it will continue to get safety certificates etc, but every year brings refusals ever closer.
Surely that has to be factored in to the equation?
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Yes, but the solution (whatever that might be) must be funded by equity not debt. We cannot take on more debt, we need capital.
 

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