New Everton Stadium

[PhilM]

Theres some facts for you.

http://volterra.co.uk/wp-content/up...k-Feasibility-Report-by-Volterra-Partners.pdf

Where within the Volterra feasibility report does it state anything regarding capital required? Where does it give land guarantees?

Where does it actually state how much Everton will need to invest in the scheme and whether such investment is affordable for the club?

It does say the project has not been given the green light by the Mayor, but is rather dependent on detailed planning and assessment procedures.

It does say that detailed funding analysis must be undertaken by a number of vested parties to analyse affordability and will require...

"A complex and varied funding strategy to support the implementation of the scheme." Does that mean working with others? Private investment?

I'm not anti-WHP by any stretch of the imagination; in fact I would be more than happy for everything to work and us to move there.

Yet as @the esk mentioned, without capital investment I am just unsure how it will be paid for and if we can actually afford to build the stadium.

Maybe it's just being overly cautious after the whole Kings Dock and Kirkby sagas.

The real issue here is that some people like yourself are more interested in arguments and see it as a simplistic all for or all against argument.

I can want something happen but still question whether it will actually happen. It doesn't mean I'm against the project...

 

[marty mcfly]

Where within the Volterra feasibility report does it state anything regarding capital required? Where does it give land guarantees?

Where does it actually state how much Everton will need to invest in the scheme and whether such investment is affordable for the club?

It does say the project has not been given the green light by the Mayor, but is rather dependent on detailed planning and assessment procedures.

It does say that detailed funding analysis must be undertaken by a number of vested parties to analyse affordability and will require...

"A complex and varied funding strategy to support the implementation of the scheme." Does that mean working with others? Private investment?

I'm not anti-WHP by any stretch of the imagination; in fact I would be more than happy for everything to work and us to move there.

Yet as @the esk mentioned, without capital investment I am just unsure how it will be paid for and if we can actually afford to build the stadium.

Maybe it's just being overly cautious after the whole Kings Dock and Kirkby sagas.

The real issue here is that some people like yourself are more interested in arguments and see it as a simplistic all for or all against argument.

I can want something happen but still question whether it will actually happen. It doesn't mean I'm against the project...

It's hard not to be skeptical but in a way our lack of spending this window is actually giving me some hope this might be going ahead. Let's be honest if it doesn't the club is in a lot of trouble.

 

[marty mcfly]

@the esk why do you say balance sheet is more important than the stadium. Are we not now in profit?

 

[roydo]

That document said "working towards a planning application by the end of 2015" Or something like that.....maybe, just maybe, it aint dead yet?

 

[sageyefc]

That document said "working towards a planning application by the end of 2015" Or something like that.....maybe, just maybe, it aint dead yet?

Unless elstone has come across a genie to grant us 3 wishes i doubt it

 

[roydo]

Unless elstone has come across a genie to grant us 3 wishes i doubt it

Lets see.

 

[sageyefc]

Lets see.

Its the hope that kills you

 

[The Esk]

@the esk why do you say balance sheet is more important than the stadium. Are we not now in profit?

It's a good question and one I'm happy to answer.

In business the balance sheet is the enabler from which you can develop your product, grow your business and generate a sustainable business in good and bad times.

So as far as Everton is concerned a stadium built on debt is a fundamentally bad thing. Why? Because it does not add to the balance sheet, it will produce only a margin increase in income (in a best case scenario) and critically it will "hamstring" the development of the squad through severely restricting flexibility in our transfer policy.

The balance sheet can only be improved through capital investment either through new investment by existing shareholders, an introduction of new shareholders, or the sale by existing shareholders to new investors capable of buying the equity and re-capitalising the business.

 

[TheFinnFan]

That document said "working towards a planning application by the end of 2015" Or something like that.....maybe, just maybe, it aint dead yet?

 

[marty mcfly]

It's a good question and one I'm happy to answer.

In business the balance sheet is the enabler from which you can develop your product, grow your business and generate a sustainable business in good and bad times.

So as far as Everton is concerned a stadium built on debt is a fundamentally bad thing. Why? Because it does not add to the balance sheet, it will produce only a margin increase in income (in a best case scenario) and critically it will "hamstring" the development of the squad through severely restricting flexibility in our transfer policy.

The balance sheet can only be improved through capital investment either through new investment by existing shareholders, an introduction of new shareholders, or the sale by existing shareholders to new investors capable of buying the equity and re-capitalising the business.

Access to capital is the enabler which allows you to grow your business. It doesn't matter where it comes from.

The only difference between debt and "money in the bank" is that debt comes with a cost which has to be serviced but as long as it can be serviced then it's a non-issue. See Man Utd.

But that's beside the point. It still doesn't answer the question. Our balance sheet is fine at the moment since we're showing a profit and our loans our serviceable which means any extra money (new TV money) which is in your words an injection of capital is essentially free for us to do what we like. I don't understand why you think our balance sheet prevents us from using it for a stadium assuming we don't use it for transfers or increasing the wage bill.

 

[The Esk]

Access to capital is the enabler which allows you to grow your business. It doesn't matter where it comes from.

The only difference between debt and "money in the bank" is that debt comes with a cost which has to be serviced but as long as it can be serviced then it's a non-issue. See Man Utd.

But that's beside the point. It still doesn't answer the question. Our balance sheet is fine at the moment since we're showing a profit and our loans our serviceable which means any extra money (new TV money) which is in your words an injection of capital is essentially free for us to do what we like. I don't understand why you think our balance sheet prevents us from using it for a stadium assuming we don't use it for transfers or increasing the wage bill.

Because we cannot fund a stadium and keep up in the transfer market simultaneously from income and debt.

The only way we can do both at the same time is through a huge injection of working capital.

 

[marty mcfly]

Because we cannot fund a stadium and keep up in the transfer market simultaneously from income and debt.

The only way we can do both at the same time is through a huge injection of working capital.

I agree. We have to choose. Player sales will allow us to keep up a team that's mid-table while we build a stadium.

Which is why I think a stadium is our No 1 priority.

 

[The Esk]

I agree. We have to choose. Player sales will allow us to keep up a team that's mid-table while we build a stadium.

Which is why I think a stadium is our No 1 priority.

That makes no sense at all. Reducing the strength of our principal asset, our team, to build a stadium which if built with debt would add nothing to our balance sheet nor P&L is crazy.

How would we fill a new stadium with a squad reduced in quality? Or worse if relegated?

Balance sheet, team, stadium in declining order are our priorities (or would be if I was in charge )

 

[Brennan]

That makes no sense at all. Reducing the strength of our principal asset, our team, to build a stadium which if built with debt would add nothing to our balance sheet nor P&L is crazy.

How would we fill a new stadium with a squad reduced in quality? Or worse if relegated?

Balance sheet, team, stadium in declining order are our priorities (or would be if I was in charge )

Correct.

 

[marty mcfly]

That makes no sense at all. Reducing the strength of our principal asset, our team, to build a stadium which if built with debt would add nothing to our balance sheet nor P&L is crazy.

How would we fill a new stadium with a squad reduced in quality? Or worse if relegated?

Balance sheet, team, stadium in declining order are our priorities (or would be if I was in charge )

Because we wouldn't get relegated. We could keep the squad at a level to achieve mid-table with selling players and reinvesting.

It's not just the extra seats but if you read the report it's also the additional revenue we would get from the bars and restaurants included in the complex.

Think about how much money all the pubs etc do in and around Goodison on match day that the club sees no money from. We could be earning a cut from all of that. It's also the reason why redeveloping Goodison isn't an option.

A new stadium would more than pay for itself over the next decade. We just need to take a hit now to fund it rather than try and keep pace with the top 6 which we couldn't do anyway even with the extra sky money.