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New Everton Stadium

Barkley1878 said:
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.
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same here.
 
Adversus said:
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.
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With respect you're just pulling numbers out yer arse

Explain exactly how the ground is going to generate beyond an additional £6m a year please.

Btw at £6m incremental income we're not a penny better off than we are today, based on your own figures.

So remind me, what was the point?
 
the esk said:
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.
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We agree on that which is why it won't happen.

200m isn't that conservative. We could build a Kirby standard stadium for around 100m but obviously we would want better than that.

I think we could borrow at 7% for this type of project. It's over a lot longer a time frame and has a huge deposit so the risk is less.

It would leave us vulnerable to being overtaken by the likes of Swansea but it wouldn't leave us vulnerable to relegation, since the gap to the teams coming up and a few around the bottom is huge, not unless we have a horrible season although I would prefer Moyes in charge rather than Martinez.

I'm not going to get into the maths of the extra seats. There's also the hospitality revenue, the corporate revenue, the events etc. I've no doubt a new stadium would significantly pay for itself. My only issue is how we raise the upfront costs for the "deposit" in the first place.
 
Foot Long Hot Dog said:
With respect you're just pulling numbers out yer arse

Explain exactly how the ground is going to generate beyond an additional £6m a year please.

Btw at £6m incremental income we're not a penny better off than we are today, based on your own figures.

So remind me, what was the point?
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Read the report. Hospitality i.e. Shops, restaurants and pubs that cater to both match day fans and tourists. Corporate boxes. Corporate facilities, music events and additional seating.

I know that 6m would mean we are no better off. It would be a lot more than 6m.
 
Adversus said:
Read the report. Hospitality i.e. Shops, restaurants and pubs that cater to both match day fans and tourists. Corporate boxes. Corporate facilities, music events and additional seating.

I know that 6m would mean we are no better off. It would be a lot more than 6m.
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It wouldn't bring in £6m let alone more.

That's the crux of the entire issue.
 

the esk said:
Over and above your borrowing costs?

Extremely optimistic.
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Yea the borrowing would cost 11m a year and the naming rights would cover 5m of those.

I actually think it's pretty realistic. Just think what we could have done if we had the season like Martinez had in his first year if we had the room to grow.
 

the esk said:
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
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I agree. Capital (working capital) or Capital in which we can use to make a 'Capital Expenditure' on an asset (Stadium) is much needed.

However, the current model - that of Goodison < 40,000 capacity and limited hospitality and business as usual will within three years make us more dead than the Dodo.

Extinct.
 
bizzaro said:
I agree. Capital (working capital) or Capital in which we can use to make a 'Capital Expenditure' on an asset (Stadium) is much needed.

However, the current model - that of Goodison < 40,000 capacity and limited hospitality and business as usual will within three years make us more dead than the Dodo.

Extinct.
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That's the reality of the situation. There are risks and the journey isn't easy but if we don't do it we will definitely be screwed long term.

Although maybe that wouldn't be such a bad thing as it probably would get rid of Kenwright.
 
Adversus said:
Yea the borrowing would cost 11m a year and the naming rights would cover 5m of those.

I actually think it's pretty realistic. Just think what we could have done if we had the season like Martinez had in his first year if we had the room to grow.
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Sorry I totally disagree, none of your sums add up.

£5 million naming rights per annum? Allianz paid €110 million for Bayern Munich naming rights up to 2041 - less than £80 million and that's for Bayern, Champions League et al.

By all means present an alternative view but at least have a resemblance of fact too.
 
the esk said:
Sorry I totally disagree, none of your sums add up.

£5 million naming rights per annum? Allianz paid €110 million for Bayern Munich naming rights up to 2041 - less £80 million and that's for Bayern, Champions League et al.

By all means present an alternative view but at least have a resemblance of fact too.
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Wow. Isnt that stadium shared as well? Like it is Red when BM are playing, and another colour when whoever they share it with play?
 

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