New Everton Stadium

[manxtoffee]

Would there be any chance going back the original plans now the club don't need to appease the puppets that have rimmed the rear holes of Unesco?

 

[Tom Hughes]

I'm guessing bank loans are agreed in principle but need finalising. It reads to me that the owners are keen to get it going. No bad thing.

Joe Lewis gave us an interest free loan to get the basement work started while we finalised our bank loans. So if Moshiri is simply paying for the start of the works (not lending the amount) that sounds like a pretty sweet deal.

Stadium spending is outside FFP so no reason why it should affect transfers. It'd be pretty mean if your owner did decide to tie this input into your transfer budget but that's really not how it sounds to me.

In short, can't see this as being anything but a good thing. Don't think there's any catch. Your owner just wants work to start asap and is happy to put his hand in his pocket to ensure that happens.

I never said getting things started was necessarily a bad thing. I was merely saying that, at this now advanced stage in the process, we might've expected greater clarity, as it would be good to have at least a handle on some of those basic operating bottom lines upon completion.... and going forward.

Also, I think a major boost for the Spurs' project was that it was supported by far larger commercial and executive/corporate provision than for us at BMD. So yes, while the model is in broadest terms compatible, it's not exactly the same.... and annual £40m or whatever interest repayments might be a completely different proposition for us with our handful of boxes and much smaller (and probably less well healed) lounge clientele.

 

[Tom Hughes]

Are you the esk ?

I would've thought it was clear that I write under my own name.

 

[RobSpurs]

I never said getting things started was necessarily a bad thing. I was merely saying that, at this now advanced stage in the process, we might've expected greater clarity, as it would be good to have at least a handle on some of those basic operating bottom lines upon completion.... and going forward.

Also, I think a major boost for the Spurs' project was that it was supported by far larger commercial and executive/corporate provision than for us at BMD. So yes, while the model is in broadest terms compatible, it's not exactly the same.... and annual £40m or whatever interest repayments might be a completely different proposition for us with our handful of boxes and much smaller (and probably less well healed) lounge clientele.

Fair enough, not knocking any of what you said, I guess some people will care more than others exactly how it's all financed. But I find it hard to believe the injection of cash Moshiri is putting in now - if that's what is happening - can be seen as anything but positive, even if you do have broader concerns about financing or about transparency.

It's absolutely none of my business how much you should be concerned about the club's overall debt though, so I'll tap out of this conversation for now.

 

[EFCccc]

give it a rest lad, are you suggesting they are winging a 500m quid job? It will be commercially sensitive and most normals don't give a hoot. Mosh has a estimated £2bn to £4bn, his mate Ushi who has already said on a few occasions that he will help his mate has more cash than the Bank of England.

Everything is pointing at the finances not being their yet. Moshiri wants the stadium up and running as soon as possible, hence why he’s funding the beginning stages while the rest of the funding is sorted out.

 

[arch stanton]

Everything is pointing at the finances not being their yet. Moshiri wants the stadium up and running as soon as possible, hence why he’s funding the beginning stages while the rest of the funding is sorted out.

or perhaps the multi billionaire financier has done some sums and worked out that he may be able to get a better deal by stumping up some cash up front himself.

 

[MickA]

There are apects of this build that certainly do need questionning. Finance and transport/accessibility probably the two main ones and neither are addressed (at least publicly) yet.

It's not a crime to question such things, I have no idea why people get so defensive about it.

 

[Tigger]

There are apects of this build that certainly do need questionning. Finance and transport/accessibility probably the two main ones and neither are addressed (at least publicly) yet.

It's not a crime to question such things, I have no idea why people get so defensive about it.

Dont think Mosh would start it if he didnt have a clear plan to finish it, not just gonna lob a load of his cash in a giant hole in the mersey.

 

[MickA]

Dont think Mosh would start it if he didnt have a clear plan to finish it, not just gonna lob a load of his cash in a giant hole in the mersey.

Nor do I but healthy questionning should be encouraged. It's a forum after all not an echo chamber.

 

[The binman chronicles]

Dont think Mosh would start it if he didnt have a clear plan to finish it, not just gonna lob a load of his cash in a giant hole in the mersey.

This really. He's not going to spend 100 million on the hope that the bank that has turned him down last week is suddenly going to say yes. Or he's going to take the large development equivalent of a loan shark meaning we pay sky high rates. No point building something to generate revenue and increase value if it does the opposite.

It probably just works out better to pay this initial part than already paying interest on any loan.

Before the internet you might hear a project was being planned, then the next you knew it was being built. Now we are demanding to see the loan agreements! Not our business unless we happen to own the club.

 

[brieverton]

Surely the concern with the lenders is the ESL.

Uncertainty is anathema in the financing of anything.

It isn't the clubs fault, but as long as Real, Barcelona etc make even vague noises from afar about still wishing to pursue this, then its understandable that lenders get cold feet.

It's concerning as the mere concept of the ESL represents an existential threat to the future of the club.

 

[toffee66]

One of the reasons Sasha has been binned is his struggles getting Finance finalised. I am told from City mates it will get done but not there yet.

The key is our funding model which intends that between USM naming rights and Moshiri perhaps as little as c. 50% of cost will be interest bearing debt. This goes some way to addressing the issue Tom Hughes correctly identifies in that BMD is not as big a revenue driver as Spurs’ stadium. In fact, without it BMD is not deliverable.

That is not a criticism of Everton or BMD. Spurs has the enormous advantage of London’s global accessibility, commercial dominance, high population density and relatively massive wealth of many in the catchment area (and I live 3 miles away so I know North London & Herts well). This supports ticket prices for even basic seats we can only dream about.

BMD might usefully hold a slightly higher capacity but it has roughly 6k box, lounge and ‘premium’ seats in the detailed plans that were approved. I think that is the absolute upper edge of what we can sell as a premier league team that might rock up in Europe every now and then. It is roughly 4x Goodison.

The revenue from this ~4K premium expansion should significantly exceed that from the ~10K ‘normal’ seats if we can sell them at full price. Spurs’ matchday revenue increase will probably be ~4x ours from a near doubling of extra capacity (+25k v +14k) and a doubling vs our prices. We will need to leverage BMD well for enhanced commercial deals and this is why the glamour location and design matter, to reduce the ‘attraction gap’ v London.

BMD probably does not help us catch up with those above us in revenue terms in any meaningful way but it can help us maintain station vs those below us with ambitions.

For the record: I’m also not TheEsk but as an accountant the Finances interest me.

 

[The binman chronicles]

Surely the concern with the lenders is the ESL.

Uncertainty is anathema in the financing of anything.

It isn't the clubs fault, but as long as Real, Barcelona etc make even vague noises from afar about still wishing to pursue this, then its understandable that lenders get cold feet.

It's concerning as the mere concept of the ESL represents an existential threat to the future of the club.

Not really, because in many ways there is a super league already that we've never been in.

If the naming rights account for the majority of the annual payment, we will still get a cash boost from our larger capacity + more hospitality stadium. If our income decreases we will pay the players less. Personally I think more Evertonians would be happy to see us fighting at the top of our league than for 5th to 8th with the ESL teams in this league.

 

[mahermi1]

Dont think Mosh would start it if he didnt have a clear plan to finish it, not just gonna lob a load of his cash in a giant hole in the mersey.

Yeah just be very confident of getting it i would have thought.

 

[Narntwinnysivven]

My ITK’s saying there’s no concerns they’re aware of and he’s on site the end of September.

Only headaches still the getting people away after the game through one major entrance onto regent road. Especially night games and both sets of fans are coming out together.

They’re estimating costs at £750m now which can still rise by the time it’s finished but as far as they’re concerned, everything’s all’s systems go.