New Everton Stadium

[Dithering Dougie]

We might not be in as strong a position in the league which will hurt our ability to attract the next Stones, McCarthy, Besic, Deulofeu, Lukaku etc.

The Sky TV money may also run out.

Essentially we might not have either the assets within the team to liquidize or the additional revenue from TV. We might do but there's a real danger we might not.

So you want us to sell the likes of Lukaku, Stones etc etc to attract the likes of Lukaku, Stones.....


Hmmm there's a flaw in this plan but I just can't put my finger on what it is.

 

[marty mcfly]

Show your workings out then.

Educate me

I have shown how we can keep the team in the premiership with no further investment above what we are currently making which frees up the TV money.

A stadium would cost about 200m for a really good one. The TV money is 25m a year for 3 years. That's 75m and the rest we could get a loan from the bank using the new stadium and players as security. The revenue alone from naming rights would be an additional 5m or so a year and I calculated that a loan of 7% over 20 years for the extra 120m would cost around 11m a year. That means that if the stadium made an additional 6m a year excluding naming rights it would pay for itself. Of course it would more likely make a lot more than that.

It would mean not paying off debt with the new TV money but that's manageable since we have been running in profit up to now.

 

[sageyefc]

I have shown how we can keep the team in the premiership with no further investment above what we are currently making which frees up the TV money.

A stadium would cost about 200m for a really good one. The TV money is 25m a year for 3 years. That's 75m and the rest we could get a loan from the bank using the new stadium and players as security. The revenue alone from naming rights would be an additional 5m or so a year and I calculated that a loan of 7% over 20 years for the extra 120m would cost around 11m a year. That means that if the stadium made an additional 6m a year it would pay for itself. Of course it would more likely make a lot more than that.

It would mean not paying off debt with the new TV money but that's manageable since we have been running in profit up to now.

Where do you get that figure for naming rights?

 

[marty mcfly]

So you want us to sell the likes of Lukaku, Stones etc etc to attract the likes of Lukaku, Stones.....


Hmmm there's a flaw in this plan but I just can't put my finger on what it is.

No I don't. We will fall down to around Swansea's level and it will take time to get back to were we currently are. I make no desire to hide that.

However with a new stadium when we do get back to were we are presently we will be able to afford to stay there and even push on to challenge the likes of Spurs and Liverpool and be ahead of West Ham like we have been doing in recent seasons.

If we don't do it now. Spurs, West Ham and Liverpool will pull out a gap from us that like the current top 4 already have done that won't be possible to catch unless we hit the owner lottery. We simply won't be able to build a stadium because we will need to spend the money to stay in the premier league.

 

[marty mcfly]

Where do you get that figure for naming rights?

Elstone said a figure of 4m-4.5m in 2010.

 

[The Esk]

Goodison is not full of the finest though.

I know of a multi billion pound company that wouldn't consider Everton for hospitality events due to the poor state of the club facilities.

They ruled out Liverpool too for the same reason and opted for Manchester United.

Money lost to Everton.

I like the example you have chosen but it's too simplistic and,as you know, the real world bears no relationship to the football world.

@the esk has described a business/club

Scared of institutional change


This means we're a dead club walking.

You either change the business model or you die.

As eventually all your competitors will out compete you if you're standing still

My analogy served two points (I) to demonstrate as in a manufacturing business you are only as good as the product you serve (in the case of Everton the football on the pitch and the results from that), and (II) you can only grow a capital intensive business if you have sufficient capital.

Hence my assertion that getting capital into the business should be the number one priority

 

[Dithering Dougie]

No I don't. We will fall down to around Swansea's level and it will take time to get back to were we currently are. I make no desire to hide that.

However with a new stadium when we do get back to were we are presently we will be able to afford to stay there and even push on to challenge the likes of Spurs and Liverpool and be ahead of West Ham like we have been doing in recent seasons.

If we don't do it now. Spurs, West Ham and Liverpool will pull out a gap from us that like the current top 4 already have done that won't be possible to catch unless we hit the owner lottery. We simply won't be able to build a stadium because we will need to spend the money to stay in the premier league.

Why say this then??

Not really and let me explain although you won't like it. Our first team has 6 or 7 sell-able assists.

Rom, Barkley, Stones, McCarthy, Mirallas and Coleman. All of those players are still in the age window that would make them sell-able and also haven't just joined us within this window. Further down the line we also have Besic, Deulofeu and Cleverly who could become reasonably sell-able assets.

But lets take those first 6 players. They would if sold command a price of around 130m.

The combined cost of a team like Swansea would only be around 60m-80m. We could easily sell one of those players every season to strengthen positions to cover players either retiring or leaving on frees.

 

[sageyefc]

Elstone said a figure of 4m-4.5m in 2010.

What has he based that on because of the top of my head theres not that many stadiums that have had their rights purchased outside of arsenal in the UK, and its silly basing things on them

 

[sageyefc]

The commercial deals of the club needs sorting and improving first before we think about a new stadium, need to bridge the shortfall that the loan would bring.

 

[TheFinnFan]

 

[Barkley1878]

What people are forgetting is that the club surely arnt stupid enough to have undertaken this WHP stadium plan without any ideas of financing it, Joe Anderson announced this news around the time we signed Lukaku for £28 million just after finishing 5th and playing some of the best football seen since the 80's, that rules out the argument for me that this was done to try appease fans as it wasn't like we needed it at the time.

I'm still in the belief that their are things going on behind the scenes regarding this stadium plan, now I'm not convinced it'll be a great stadium as let's be honest this board only offer the basics but I don't think it's dead and buried at this stage yet.

Regarding flogging players I wouldn't advocate this what so ever, however I can't see Stones and certainly Lukaku with his agent being around for more than another 1-2 years and assuming we get around £65 mil from the both I do wonder if the board will use that as 2 seasons worth of decent transfer funds with the TV money being stashed aside towards this stadium.

 

[marty mcfly]

So you want us to sell the likes of Lukaku, Stones etc etc to attract the likes of Lukaku, Stones.....


Hmmm there's a flaw in this plan but I just can't put my finger on what it is.

That's what I referred to. When I said No I don't.

We will need to sell them to generate the revenue to allow us to reinvest to cover the players we would lose through retirement and frees.

But it's irrelevant anyway. We won't be able to keep those players if they fulfill their potential. They will demand more wages than we can afford and will want to play for teams higher up the league or in the champions league.

Lukaku is on 70K a week and he's 22. How much do you think he will want as a 25 year old. 120K? We won't be able to afford him.

The same way we couldn't afford Yarmolenko, Konoplynka, Payet etc this window. We can't pay the wages of those players so they will leave. The only way we could afford them is if we increase our revenue relative to the other teams. The TV money won't do that because it goes to all the teams, it just inflates the market but doesn't help us. Not unless we use it wisely.

 

[marty mcfly]

What has he based that on because of the top of my head theres not that many stadiums that have had their rights purchased outside of arsenal in the UK, and its silly basing things on them

No idea but that's the figure he gave.

 

[marty mcfly]

What people are forgetting is that the club surely arnt stupid enough to have undertaken this WHP stadium plan without any ideas of financing it, Joe Anderson announced this news around the time we signed Lukaku for £28 million just after finishing 5th and playing some of the best football seen since the 80's, that rules out the argument for me that this was done to try appease fans as it wasn't like we needed it at the time.

I'm still in the belief that their are things going on behind the scenes regarding this stadium plan, now I'm not convinced it'll be a great stadium as let's be honest this board only offer the basics but I don't think it's dead and buried at this stage yet.

Regarding flogging players I wouldn't advocate this what so ever, however I can't see Stones and certainly Lukaku with his agent being around for more than another 1-2 years and assuming we get around £65 mil from the both I do wonder if the board will use that as 2 seasons worth of decent transfer funds with the TV money being stashed aside towards this stadium.

Exactly whether we want to flog them or not they will have to be sold because they won't sign new contracts. The question is how we use the money. Both it and the new TV money.

Our league position shouldn't be the priority over the next 5 years as long as we don't risk relegation. A new stadium should be.

It's that simple.

 

[The Esk]

I have shown how we can keep the team in the premiership with no further investment above what we are currently making which frees up the TV money.

A stadium would cost about 200m for a really good one. The TV money is 25m a year for 3 years. That's 75m and the rest we could get a loan from the bank using the new stadium and players as security. The revenue alone from naming rights would be an additional 5m or so a year and I calculated that a loan of 7% over 20 years for the extra 120m would cost around 11m a year. That means that if the stadium made an additional 6m a year excluding naming rights it would pay for itself. Of course it would more likely make a lot more than that.

It would mean not paying off debt with the new TV money but that's manageable since we have been running in profit up to now.

I know you like to present an alternative to almost every argument put on this site, and that's fine as it stimulates debate.

However your figures are entirely wrong.

200 million is a very conservative estimate of the costs of a new stadium.

Not investing 75 million in the team when everyone else is doing so makes us hugely vulnerable within the Premiership.

We cannot borrow at 7 per cent, our current borrowings are at 7.7 and 8.8 per cent.

We would have to sell 11000 extra seats at 50UKP every game to get close to covering the cost of borrowing.

Just go out and raise 500 million to buy out existing shareholders, capitalise the business, build a stadium and improve the squad. Even that sum would be tight.