New Everton Stadium

[Dymak]

A few months ago, I read an article from some financial publication that discussed the funding models Everton are considering. The article was linked in this thread.

Usmanov's money, bank loans, and finally some kind of investment facility from independent investors was discussed. The latter option was said to involve independent investors stumping up the money as a collective loan, which they would each receive interest on. The article finished with a quote of a supposed would-be investor stating "Who needs Usmanov when you've got us?"

Although the world isn't going to come to an end, and it is highly likely that the Premier League will return to 38 games a season just like previously, the confidence in premier league revenues has definitely taken a knock. It's gone from being the closest thing to a 'sure thing', to something that can very much be jeopardised.

I don't know if anyone can obtain a link to the article that I am talking about?

Regardless, the appetite to loan clubs money for the purpose of building stadia for premier league clubs will have been reduced. This will apply to everyone, including Usmanov himself.

 

[Kever10]

If he bought the naming rights as a non owner and set the market price for it, then decided to buy into the club as a major shareholder, would he have to withdraw the naming rights deal? If he did have to, would this now established market price be easier to achieve, even if it was considerably less than his own naming rights deal, than if we initially attempted to get another, smaller deal in the 1st place?

These are highly successful, intelligent business men with a great deal of knowledge and experience in these matters. If we are thinking of a potential move they could make, they are already 5 or 6 moves ahead.

 

[mahermi1]

The landscape has now changed, how many projects will now be cancelled on the Liverpool waters project. The idea initially was for the stadium to be built first and then other projects to come forward on the docks

How many banks will lend 300m+ in the current climate and at what interest rate.

Then you talk about the value of the club, 500m + moshiris investment so far = 800m+.
Who will buy the club for that sort of money when you have Newcastle going for 300m

you sound very excited...the mask slipping is it ..

 

[Lanolin]

Think you're wrong there. Any revenue within FFP has to be deemed at fair market value, not seen as a fiddle. As I said, stadium build costs are outside of that equation, so owners can plough as much money in as they want to. Naming rights aren't outside of it though.

I'm not pre-empting anything, but it just seems weird that that risk is being taken when there's a completely risk-free way of putting loadsa money into the development.

Nope.

"if a club owner has injected money into the club through a sponsorship deal with a company they are related to, UEFA will investigate and, should the situation permit, adapt the calculations of the break-even result for the revenues to the level that is appropriate ('fair value') and in-keeping with market prices."

Hence the point about it being relevant whether your backer is your owner.

 

[mahermi1]

Think you're wrong there. Any revenue within FFP has to be deemed at fair market value, not seen as a fiddle. As I said, stadium build costs are outside of that equation, so owners can plough as much money in as they want to. Naming rights aren't outside of it though.

I'm not pre-empting anything, but it just seems weird that that risk is being taken when there's a completely risk-free way of putting loadsa money into the development.

At this moment in time football is in dire financial straits, but you think football governing bodies will stop money being pumped into football, sounds just like a Turkey voting for Christmas.

 

[The binman chronicles]

At this moment in time football is in dire financial straits, but you think football governing bodies will stop money being pumped into football, sounds just like a Turkey voting for Christmas.

If clubs like utd and Arsenal don't make it into the European competitions as they are unwilling to keep up then it works the opposite way. For UEFA to make money they need these teams in and why they want to keep new money out.

 

[blueblue]

The landscape has now changed, how many projects will now be cancelled on the Liverpool waters project. The idea initially was for the stadium to be built first and then other projects to come forward on the docks

How many banks will lend 300m+ in the current climate and at what interest rate.

Then you talk about the value of the club, 500m + moshiris investment so far = 800m+.
Who will buy the club for that sort of money when you have Newcastle going for 300m

Nobody knows how the world economy will bounce back or how quickly.

However, the one thing that is absolutely certain is that from an economic pint of view large capital projects are absolute gold dust to a local economy.

The Everton project was always a huge boost to the Liverpool economy, now it is absolutely vital, a complete life saver , not only because of the project it self and the jobs it will create but hopefully the additional projects it may spark. I think the major thing to come out of this is the cost of the project will reduce rather than increase.

Large capital projects are not undertaken on a whim and they are not completed overnight.
The development of the ground at BMD is at least a three year project and the hope would be that the world economy will at the very least be in a recovers stage by then if not better.

 

[RobSpurs]

Nope.

"if a club owner has injected money into the club through a sponsorship deal with a company they are related to, UEFA will investigate and, should the situation permit, adapt the calculations of the break-even result for the revenues to the level that is appropriate ('fair value') and in-keeping with market prices."

Hence the point about it being relevant whether your backer is your owner.

Exactly, the whole thing hinges on how "related" they are. That's my point. It's risky ground. Whereas Usmanov could come on board as owner, plough his own money into the stadium (not through sponsorship) and that wouldn't even need to be investigated. Doing it through convluated, above-market-rate rights deals it's almost as if they're asking for an investigation!

 

[blueblue]

Think you're wrong there. Any revenue within FFP has to be deemed at fair market value, not seen as a fiddle. As I said, stadium build costs are outside of that equation, so owners can plough as much money in as they want to. Naming rights aren't outside of it though.

I'm not pre-empting anything, but it just seems weird that that risk is being taken when there's a completely risk-free way of putting loadsa money into the development.

RS.
Do you think there will be any relaxation of the FFP rules ?
I look at your own club with the huge financial burden that you carry, I look at clubs like Utd, City and Liverpool in particular who are absolutely haemorrhaging money every week now( all clubs are relative to their size). There simply isn't enough money in the game to sustain itself with it's current cost structures without outside investment in my opinion.
If money is pumped into the game does it matter where it comes from ? ( honest money obviously)

 

[cronullasharks]

The landscape has now changed, how many projects will now be cancelled on the Liverpool waters project. The idea initially was for the stadium to be built first and then other projects to come forward on the docks

How many banks will lend 300m+ in the current climate and at what interest rate.

Then you talk about the value of the club, 500m + moshiris investment so far = 800m+.
Who will buy the club for that sort of money when you have Newcastle going for 300m

Rat

 

[H.H.]

Is this the way it's all gone so far?

1) Very rich Usmanov give he's much poorer accountant Moshri free shares of he's stake in Arsenal?

2) Moshri sells those free shares in Arsenal to buy Everton?

3) Usmanov then pays millions to sponsor Evertons training ground owned by he's accountant Moshri?

4) Everton plan to build a new stadium in Liverpools docklands?

5) Moshri buys Liverpools Liver building?

6) Usmanov then rents office space inside the Liver building from he's accountant Moshri?

7) Usmanov sells he's shares in Arsenal?

8) For no reason at all, through one of he's many companies, very rich Usmanov pays £30 million just to be able to have the first rights to be able to sponsor a future stadium owned by he's accountant Moshri, who in the first place had used the free shares given to him by Usmanov to buy Everton?

 

[firefighterblue]

Is this the way it's all gone so far?

1) Very rich Usmanov give he's much poorer accountant Moshri free shares of he's stake in Arsenal?

2) Moshri sells those free shares in Arsenal to buy Everton?

3) Usmanov then pays millions to sponsor Evertons training ground owned by he's accountant Moshri?

4) Everton plan to build a new stadium in Liverpools docklands?

5) Moshri buys Liverpools Liver building?

6) Usmanov then rents office space inside the Liver building from he's accountant Moshri?

7) Usmanov sells he's shares in Arsenal?

8) For no reason at all, through one of he's many companies, very rich Usmanov pays £30 million just to be able to have the first rights to be able to sponsor a future stadium owned by he's accountant Moshri, who in the first place had used the free shares given to him by Usmanov to buy Everton?

That's about right.

 

[Joeharper07]

I think when PP is obtained it may be mothballed for a year to assess the economic fallout of the last few months , I think most businesses will be cautious about any major investment straight away and we are planning a project that is a very costly build and can easily go over budget . As for the development of the rest of the docks , the whole docks along Liverpool from the far end of the south have always been slow to be developed , I actually worked on the first development and that was in 1983 so it’s nearly 40 years to get us where we are now even around the pier head area the Liverpool waters project is over ten years old and not much has been done in that period at all and that’s the best area .

 

[havrey0123]

Nobody knows how the world economy will bounce back or how quickly.

However, the one thing that is absolutely certain is that from an economic pint of view large capital projects are absolute gold dust to a local economy.

The Everton project was always a huge boost to the Liverpool economy, now it is absolutely vital, a complete life saver , not only because of the project it self and the jobs it will create but hopefully the additional projects it may spark. I think the major thing to come out of this is the cost of the project will reduce rather than increase.

Large capital projects are not undertaken on a whim and they are not completed overnight.
The development of the ground at BMD is at least a three year project and the hope would be that the world economy will at the very least be in a recovers stage by then if not better.

We will see, a decision is expected soon now and the board said they would reveal the financing of the deal when that happens.

 

[RobSpurs]

RS.
Do you think there will be any relaxation of the FFP rules ?
I look at your own club with the huge financial burden that you carry, I look at clubs like Utd, City and Liverpool in particular who are absolutely haemorrhaging money every week now( all clubs are relative to their size). There simply isn't enough money in the game to sustain itself with it's current cost structures without outside investment in my opinion.
If money is pumped into the game does it matter where it comes from ? ( honest money obviously)

There's a bit of a misconception with us...we've got a lot of debt, but it's manageable....because, y'know, it's Levy. The new stadium was predicated on regular PL football, nothing more. Short of something ridiculous happening like a global pandemic stopping all football, the debt isn't a risk.

If you're asking me if I think FFP will be relaxed because of corona...literally no idea! lol. But that's only going to be helpful if clubs have outside investment lined up, most won't. They just need revenue to come back on tap somehow.