New Everton Stadium

toffee66 said:
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.

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How can it be incorrect? If the stadium costs £500 million and so much of that is being funded by a naming rights deal we cant just say to the contracters etc. "Sorry lads you'll get that money in 10 yearly instalments etc.

Too many wannabe Esks when it comes to Everton finances lets wait and SEE what they do instead of trying to second guess two billionaires who aint exactly up front about the ownership/money in this club.
 

ForeverBlue92 said:
Too many wannabe Esks...
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tenor.gif
 
ForeverBlue92 said:
How can it be incorrect? If the stadium costs £500 million and so much of that is being funded by a naming rights deal we cant just say to the contracters etc. "Sorry lads you'll get that money in 10 yearly instalments etc.

Too many wannabe Esks when it comes to Everton finances lets wait and SEE what they do instead of trying to second guess two billionaires who aint exactly up front about the ownership/money in this club.
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Before posting you might have tried reading the link I attached which explains the relevant accounting rules. FYI, unlike you and The Esk I am a qualified accountant. When you get the cash is NOT how you recognise the revenue. Revenue recognition is what matters for STCC/FFP. My post is 100% factually accurate so re-read it and learn.
 
toffee66 said:
Before posting you might have tried reading the link I attached which explains the relevant accounting rules. FYI, unlike you and The Esk I am a qualified accountant. When you get the cash is NOT how you recognise the revenue. Revenue recognition is what matters for STCC/FFP. My post is 100% factually accurate so re-read it and learn.
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So how can we fund half or so of the stadium build by paying said naming rights over 10-15 years? Genuine question as I assume naming rights will be over a yearly term i.e 10 years but I dont know how that would work when the deal itself is supposedly earmarked towards the build cost?

STCC has also been abolished hasnt it?

Also my missus is a qualified accountant doesn't mean she knows the ins and outs of Evertons finances mate! lol
 
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ForeverBlue92 said:
So how can we fund half or so of the stadium build by paying said naming rights over 10-15 years? Genuine question as I assume naming rights will be over a yearly term i.e 10 years but I dont know how that would work when the deal itself is supposedly earmarked towards the build cost?

STCC has also been abolished hasnt it?

Also my missus is a qualified accountant doesn't mean she knows the ins and outs of Evertons finances mate! lol
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Cos we borrow the money/Mosh pays it.

Its why you can afford your house cos your incomes enable you to borrow enough to buy it.

The naming deal just adds wonga onto the accounts, so the banks are comfortable.
 
roydo said:
Cos we borrow the money/Mosh pays it.

Its why you can afford your house cos your incomes enable you to borrow enough to buy it.

The naming deal just adds wonga onto the accounts, so the banks are comfortable.
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I assumed that mate but the way the club have presented it is Mosh putting £100 million in with the remaining balance split between a private loan and a Naming Rights deal.

Surely it would be just a private loan with the naming rights coming in following the build to pay towards the repayments of the loan? But the way the club have spoke about it sounds like the loan we are getting is only towards half the build and naming rights itself is paying towards the other half.
 

"Moshiri is expected to pump in around £100m towards the project while the new stadium project will be part funded by the naming rights deal the club agreed with USM Holdings last year.

The vast majority of the half a billion pound project will come from lending, Moshiri and a naming rights deal."

That was the quote in the Echo I was referring to sorry @roydo - to me that sounds like a big wad of cash will be hitting the clubs coffers over the next 1-3 years of the stadium build.

Ultimately I guess its wait and see!
 
ForeverBlue92 said:
I assumed that mate but the way the club have presented it is Mosh putting £100 million in with the remaining balance split between a private loan and a Naming Rights deal.

Surely it would be just a private loan with the naming rights coming in following the build to pay towards the repayments of the loan?
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A naming deal will not be directly used to pay the brickies mate.

This stadium thing is one of the few footie based stuff I have a clue about. So, forget about it being the Everton Ground. Think about M&S building a massive new shop. Would M&S pay for the total build? No. They would show commitment with some upfront outlay, (Mosh?), then present their accounts to private lenders for the rest.

If they can inflate those accounts with a 10 or 15 year Store Naming Deal, (no, me neither, but you get the gist), all good.

All that said, thats how it normally works. If Mosh and the Uncle just want to pay the lot themselves, well, it would be unusual, but not illegal or nothing.
 
ForeverBlue92 said:
"Moshiri is expected to pump in around £100m towards the project while the new stadium project will be part funded by the naming rights deal the club agreed with USM Holdings last year.

The vast majority of the half a billion pound project will come from lending, Moshiri and a naming rights deal."

That was the quote in the Echo I was referring to sorry @roydo - to me that sounds like a big wad of cash will be hitting the clubs coffers over the next 1-3 years of the stadium build.

Ultimately I guess its wait and see!
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Thats pretty much what I just posted mate!
 

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