New Everton Stadium

[EverTheOptimist]

Was that early in 2020 or late?

An airline that lays off almost a 3rd of it's cabin crew and a similar number of pilots won't be seen chucking money at a football stadium in another country.

The past year financial results have been their worst since they formed (I think 1982).

Not sure but Etihad are the most bankrupt loss making airline in the World and they are according to the CAS FFP trial Man City were involved in was reported the Etihad deal was worth £120 million a year, it was supposed to be £40 million a year as they had told UEFA,the leaked emails CAS showed the true per year deal.

 

[ForeverBlue92]

What USM need to do is sponsor the stadium, create or buy a sportswear company to make our kit, use one of the other USM companies to sponsor the shirt and another USM company for the sleeve.

Why because a stadium naming rights deal isn't going to elevate our spending at an increase of only 30 million in today's football, it's small change, it's why most elite clubs don't bother with a naming rights deal when you read below.

In the PL the three richest clubs by turnover are RS, United and City and their turnovers at pre covid levels 580-620 million, they average around 260- 320 million on commercial deals, the big chunk of that is kit deals, shirt sponsorship, sleeve and training ground which makes around 180-200 million each then they add on other commercial deals from travel cars watches, clothing, cosmetics, energy drinks, food on top.

We need a naming rights deal of £250 million a year to make a dent, or we increase commercial deals as I listed because a sole naming rights deal at what you quoted doesn't make a dent now to change anything for us in football certainly won't when the stadium is built because those three clubs will be getting sleeve sponsors that dwarf that naming rights deal,as you said prior football prices go up, three years is a long time in football.

If the naming rights deal is going towards the stadium build - it will likely be paid in 1 or 2 yearly instalments if the stadium build is expected to be aporox 3 years from start to finish with Moshiri funding phase 1 himself.

Say if that deal is £20 million over 10 years - thats hypothetically £200 million hitting the accounts in either 1 or 2 year instalments - thats a massive help FFP speaking in which the owner has the ability to spend more on transfers without falling foul of the rules.

 

[ForeverBlue92]

Unfortunately the authorities are already very suspicious of the alleged connection between Usmanov and Everton and have investigated us in this regard numerous times already, most recently about a month ago.
Any incoming sponsorship money has to be at or around the market rate and directly comparable with the amount other clubs might expect to receive for similar transactions.
We have to box clever on this.

Thats my point mate - if the biggest deal is £15 million 2 years ago nothing stopping USM from sponsering us at £25 million - UEFA aint taking us to the highest court over an amount that Usmanovs lawyers could easily point out is what "they" consider fair market value - who's to argue with that?

Obviously £60 million a year would raise big eyebrows but thats unlikely to happen regardless.

 

[The binman chronicles]

Surely though it would be a good thing to have as big a sponsorship deal as possible, to minimise the club's debt ?

They'll push it as far as they are willing to pay up to a maximum of where they think they will be collared by the authorities. 20-25 million a year seems realistic.

 

[Eggsyblueskin]

Thats my point mate - if the biggest deal is £15 million 2 years ago nothing stopping USM from sponsering us at £25 million - UEFA aint taking us to the highest court over an amount that Usmanovs lawyers could easily point out is what "they" consider fair market value - who's to argue with that?

Obviously £60 million a year would raise big eyebrows but thats unlikely to happen regardless.

They scrutinised the Finch Farm sponsorship very closely for just these reasons and it was clearly carefully measured to be allowable.
It’s the PL who are maintaining a close watch as well as UEFA.
We can and will stretch the regulations as much as possible but driving a coach and horses through them would be extremely dangerous for the club.

 

[Toffeelover]

If you have got the money there are apartments just over the road in the Tobacco Warehouse, only have to walk to the Stadium.

 

[MickA]

USM ultimately can pay what they want mate - Usmanov isn't involved in the club remember.

Never understand this thinking. Moshiri is involved in the Club remember.

 

[Sharpies volley]

It's a shame they didn't put so much energy in investigating the amount of money Abramovich put in to Chelski to make them a big club when he bought them

 

[toffee66]

If the naming rights deal is going towards the stadium build - it will likely be paid in 1 or 2 yearly instalments if the stadium build is expected to be aporox 3 years from start to finish with Moshiri funding phase 1 himself.

Say if that deal is £20 million over 10 years - thats hypothetically £200 million hitting the accounts in either 1 or 2 year instalments - thats a massive help FFP speaking in which the owner has the ability to spend more on transfers without falling foul of the rules.

This is incorrect. The revenue will be recognised over the life of the agreement not as received. It will likely be recognised evenly over the life of the agreement but this is actually quite complex (see link p27/44) so £20m pa in this example.

It is further complicated by the fact that under both PL and UEFA rules the contract is ‘marked to market’ and any excess value, particularly is from a related party (though USM is NOT being accounted as one right now) can be disallowed effectively limiting the amount of revenue allowed to be recognised for STCC/FFP.

https://www.pwc.com/gx/en/audit-services/ifrs/publications/ifrs-9/accounting-for-typical-transactions-in-the-football-industry.pdf

 

[EverTheOptimist]

They scrutinised the Finch Farm sponsorship very closely for just these reasons and it was clearly carefully measured to be allowable.
It’s the PL who are maintaining a close watch as well as UEFA.
We can and will stretch the regulations as much as possible but driving a coach and horses through them would be extremely dangerous for the club.

Why was the Finch Farm deal scrutinised, i heard or read that it's only around £4 million a year.

United and the RS have training ground sponsorship worth £20-£25 million a year, Etihad campus must be around the same.

 

[EverTheOptimist]

This is incorrect. The revenue will be recognised over the life of the agreement not as received. It will likely be recognised evenly over the life of the agreement but this is actually quite complex (see link p27/44) so £20m pa in this example.

It is further complicated by the fact that under both PL and UEFA rules the contract is ‘marked to market’ and any excess value, particularly is from a related party (though USM is NOT being accounted as one right now) can be disallowed effectively limiting the amount of revenue allowed to be recognised for STCC/FFP.

https://www.pwc.com/gx/en/audit-services/ifrs/publications/ifrs-9/accounting-for-typical-transactions-in-the-football-industry.pdf

That's why in 2010 Man City told Uefa and the PL the Etihad deal was £40 million, it came out in the CAS trial that by 2012 it was increased to £80 million a year and UEFA were not even told that when they were found guilty with PSG of failing FFP in 2014, then the Emails were leaked in 2019 with Soriano their CEO asking Abu Dhabi to increase the Etihad sponsorship to boost the turnover and for Aabar to pay a £15 million pound bonus for winning the Fa Cup that they lost against Wigan lol , City admitted at the CAS trial that the Etihad deal was now paying City £120 million a year.

 

[LEONARD]

If you have got the money there are apartments just over the road in the Tobacco Warehouse, only have to walk to the Stadium.

I would sell my soul to own one.

 

[Toffeelover]

I would sell my soul to own one.View attachment 132448

Is it that expensive?

 

[liamefc91]

Why was the Finch Farm deal scrutinised, i heard or read that it's only around £4 million a year.

United and the RS have training ground sponsorship worth £20-£25 million a year, Etihad campus must be around the same.

Because who the hell would sponser everton’s training ground fo £400 let alone £4m. These billionaires would have done their homework. Start off low then add more every year. Fyi, i think its £12m a year now. Thing they re-negotiated half way through thr contract because obviously finch farm increased turnover in usm 10-fold.
Youve got to be blind not to see usmanovs involvement, even journalists openly naming him in articles. These people fond loop holes and ways round anything. Obviously its been assessed and decided ot would benefit everton greater if usmanov was not offically on board.

 

[Bluerover]

Is it that expensive?

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