New Everton Stadium

[Walken]

And they went from 8 consecutive years in the top two, down to CL every year to 10 years occupying 3rd/4th.

I suspect that, as we had been regularly hovering between 6th and 12th, "a little hit" in the transfer budget was something we could cope with - take 5 years of 10th - 14th place finished in exchange for a shiny new stadium. That's looking far riskier now.

They also had Arsene Wenger who did an unbelievable job while they funded the stadium

 

[Ferguson1878]

MSP will eventually own the Stadium is my guess.

counting down the 100 year lease we’ll sign up for like when we’re counting down the years on

All of it.

That's why Moshiri was so bullish saying he'd fund the whole thing himself if needed. (which he could have)

The hugely inflated naming rights (it would have been massive) was a way to make it look like a viable business plan.

It's quite an oversight to not consider a needy little baldy nonce might throw his toys out the pram and scupper himself and all his rich mates in the process.

Moshiri (Usmanov) didnt really care about the Everton money pit, I genuinely believe it was just an avenue to stick two fingers up to Arsenal for blocking their ambitions there.

It's failed in quite a spectacular fashion.

the loan from the council was well
before the war though and it was knocked back because i though they could get better terms off someone else , what would
be the point in searching if usmanov was just going to pay for it himself

 

[jonnyboy316]

Yes, but that doesn't mean that the business case for BMD was strong (or even sustainable) as has been shown.

When Arsenal and Spurs were putting their stadium proposals together, they clearly demonstrated viability with their projections for increased incomes covering the cost of the loans, principally via much increased corporate offers. As a consequence, those clubs had no real problems raising the required finances. They had 150 and 80 boxes and high-capacity, high-end executive/corporate in whole dedicated tiers, versus our 20ish boxes and mainly corporate-lite in shared tiers.

Our model was always far more speculative and sugar-daddy-loaded. Initially, the owner was only supposed to be funding site acquisition, planning and initial construction phases, with the club seeking finance for the balance to complete it. Our sponsor was then going to help cover those loans via a lucrative naming rights deal. All seemingly plausible, until people started applying the actual numbers. At no point was the club able to demonstrate viability to the banks to secure the finances and that initial plan didn't even get over the first hurdle. However, the club was still in "money-no-object" mode, and pushed on regardless in the hope that at least starting it would convince lenders. It didn't! Moshiri has had to cover it all, up to recently. In the meantime costs have spiraled by 50% (if you believe Moshiri) and the sponsor is no more. Our previously parlous financials have only worsened (possibly due to the stadium) and the club is completely financially hamstrung, on and off the pitch. Moshiri now appears desperate to sell ASAP. He is in loss-cutting mode and has even had to go cap-in-hand to any would be (potentially shark) investors to partially plug the funding gap and to try to help meet the lenders risk requirements, to finally secure those loans (that will be loaded onto the club) to get the stadium built. Even that seems to have backfired due to the nature of other outstanding loans.

Unfortunately, this is where we could enter that rocky territory where the owner's and club's wishes become divergent. His hope now is that the stadium will boost the value of the club sufficiently enough for him to recoup as much of his money as possible. Our hopes are that any subsequent debts are not loaded onto the club and its new owners going forward, and that those new owners represent the best option for us and not necessarily just those of someone desperate to sell.

None of which was mentioned in the brochure!

Yes we might be at a point where only a next level sugar Daddy type investor can get us out of this. However worth noting this is a new home hopefully for the next hundred years and not just 2 to 3 decades. There is some hope for younger and future Evertonians if not myself

 

[BNJ1878]

counting down the 100 year lease we’ll sign up for like when we’re counting down the years on

the loan from the council was well
before the war though and it was knocked back because i though they could get better terms off someone else , what would
be the point in searching if usmanov was just going to pay for it himself

I suspect the loan from the council was more Fat Joe pushing the option rather than Everton seriously exploring the possibility.

Plan A was always commercial lending, the banks wouldn't touch us because of our shambolic accounts.

Plan B was Moshiri (Usmanov if you prefer) paying for it (he still could if his money wasn't tied up)

Reality is now staring them in the face and Moshiri will probably need to take a serious knock to get out of it.

 

[Eggs]

The flag thing is yet another example of poor PR by Everton . Most hotels literature says handy for Anfield but rarely mentions Goodison. It's up to our club to get our name out there.

….they are a business playing to the market. If Everton are a successful team the Blue flags and banners will go up. When they play at home the city is full of fans from across Europe, that situation doesn’t apply to us. I’ve always said we need to be the best team in the City, the rest will look after itself.

 

[b-rad]

They also had Arsene Wenger who did an unbelievable job while they funded the stadium

Well, yes. They would have fallen much further without Wenger.

 

[Tom Hughes]

I suspect the loan from the council was more Fat Joe pushing the option rather than Everton seriously exploring the possibility.

Plan A was always commercial lending, the banks wouldn't touch us because of our shambolic accounts.

Plan B was Moshiri (Usmanov if you prefer) paying for it (he still could if his money wasn't tied up)

Reality is now staring them in the face and Moshiri will probably need to take a serious knock to get out of it.

I think most Evertonians turned a blind eye to the whole financial plan (or lack thereof) because of the sponsorship deal etc. None of the sums even came close to adding up without that. Even with it, none of the financial institutions were interested. Even now, with the stadium 2/3rds complete they're struggling to get within acceptable risk terms with any banks for the balance.

The issue for me was always about how much debt would ultimately land on the club (or new-owner) and if that was sustainable beyond the life of Moshiri/USM involvement and his safety net sponsorship. If the stadium was ultimately just a way of packaging the club to maximise return for the owner via a quick sale.... it doesn't appear to have leveraged any significant increased value, even at 2/3rds completion. So, it looks like they (or the new owner) will eventually have to take that hit. It has to land somewhere!

Worst case scenario could be if the new owners load it back onto the club after their own leveraged buyout, then we would just have years of sailing close the wind (if we're lucky).

Hopefully the shiny new stadium attracts real money ownership and not the potential carpetbaggers we appear to be associated with thus far.

 

[tommye]

MSP will eventually own the Stadium is my guess.

They'd need to own the club first

 

[GN!]

They'd need to own the club first

Not necessarily if they fund the completion there may be a settlement using the stadium or part of as repayment

 

[The binman chronicles]

I seem to remember that for a few years after Arsenal built their new stadium they were strapped for cash for transfers. Think it will be same for us.

Their ideology for paying the staduim off was totally different to what we are trying to do. They wanted to run the business tightly until they had paid or mostly paid the debt off in the least amount of time possible. We want to secure a mortgage where we pay the debt off over the next 30 or so years.

In theory we shouldn't hit the austerity situation because the club will know how much to service the debt, if the stadium generates more income than that repayment then we'll be better off and that money will be used to make the team better. We obviously don't get the massive boost in income that Arsenal had once they shifted from repaying to then being able to use the extra of what the new stadium brings in. That was a short term goal for them, for us it will be two generations down the line. That said we could never hope to generate the sort of cash that would allow us to even attempt that method. London prices init.

 

[tommye]

Not necessarily if they fund the completion there may be a settlement using the stadium or part of as repayment

Someone posted the other day that one of the terms of the leasehold off Peel is that Everton Football Club must remain as owners of the stadium. So, you want the stadium, you buy the club first.

 

[The binman chronicles]

I think most Evertonians turned a blind eye to the whole financial plan (or lack thereof) because of the sponsorship deal etc. None of the sums even came close to adding up without that. Even with it, none of the financial institutions were interested. Even now, with the stadium 2/3rds complete they're struggling to get within acceptable risk terms with any banks for the balance.

The issue for me was always about how much debt would ultimately land on the club (or new-owner) and if that was sustainable beyond the life of Moshiri/USM involvement and his safety net sponsorship. If the stadium was ultimately just a way of packaging the club to maximise return for the owner via a quick sale.... it doesn't appear to have leveraged any significant increased value, even at 2/3rds completion. So, it looks like they (or the new owner) will eventually have to take that hit. It has to land somewhere!

Worst case scenario could be if the new owners load it back onto the club after their own leveraged buyout, then we would just have years of sailing close the wind (if we're lucky).

Hopefully the shiny new stadium attracts real money ownership and not the potential carpetbaggers we appear to be associated with thus far.

Banks will not risk a cent until it's certain that the project will be finished. It doesn't matter if it's two thirds complete or 95%, while there is a chance the club could go into meltdown and the build just left sitting there unfinished, it won't release any funds.

Once the remaining amount owed to finish the build is within the value that the banks have agreed to loan (which will have come down presumably with the higher interest rates, again making it that bit tougher for Moshiri) then they can finally get that signed and sorted.

 

[Tom Hughes]

Banks will not risk a cent until it's certain that the project will be finished. It doesn't matter if it's two thirds complete or 95%, while there is a chance the club could go into meltdown and the build just left sitting there unfinished, it won't release any funds.

Once the remaining amount owed to finish the build is within the value that the banks have agreed to loan (which will have come down presumably with the higher interest rates, again making it that bit tougher for Moshiri) then they can finally get that signed and sorted.

You're describing a catch 22. The stadium is part of that potential for meltdown. If the banks release the cash for the shortfall, then stadium will be completed. So the bank's problem isn't really about completion, but the risk to them if the club cannot then afford to pay it back. In the case of Spurs and Arsenal, they clearly demonstrated that viability. We haven't been able to do that and the banks prefer that risk shared hence the reason for the MSP loan.

 

[Neiler]

MSP will eventually own the Stadium is my guess.

Not beyond the realms of possibility mate.

The other thing is what happens Goodison - we clearly cant afford that development either.

 

[Neiler]

Someone posted the other day that one of the terms of the leasehold off Peel is that Everton Football Club must remain as owners of the stadium. So, you want the stadium, you buy the club first.

The stadium is secured against the 100 mill MSP have loaned the club mate, at least that's what many seem to be reporting. Not sure how it all works whether the security is with the Stadium Company or what - or how it breaks down.

Hard to see MSP giving us that money without security.