New Everton Stadium

[The binman chronicles]

I hope you are right, I just dont see the Stadium being the white knight that most do.

As it stands it won't be. But at the same time it shouldn't be a financial millstone either. It should come out at worst cost neutral or a few million ahead (10?) nothing that is going to suddenly transform our team I doubt.

If we were having USM as the naming partner then suddenly we would have had that massive jump. The stage is set for Ineos or a n other to buy us out, slap their name across the stadium and pay the 30-50 million a year to combat FFP rules to make a big difference.

 

[The binman chronicles]

 

[Jacko93]

Perhaps the same way they did with the dozens of houses that were on the Park end in the 90s and no-one said anything about what-so-ever..... not necessarily like when the whole one side of the Gwladys St was knocked down in the 30s to build the upper Gwladys st and turn GP into the finest football stadium in the country, that everyone had also forgotten about.

Personally, I'd like to think they would be very well remunerated given the hundreds of £millions saved. After all these are literally the cheapest houses next to any football stadium in the country. Perhaps if you asked those people, they would'nt thank anyone for stopping them getting such a one-off windfall.

I was under the impression that the majority of those homes were owned by EFC or their subsidiaries and, were in many cases used to house players/staff and/or their families.

 

[Tom Hughes]

I was under the impression that the majority of those homes were owned by EFC or their subsidiaries and, were in many cases used to house players/staff and/or their families.

Majority but not all and owners/tenants were still evicted. The club also used to own many other houses on Muriel and Diana Street and Goodison Rd into the 90s. Perhaps long since sold off.

 

[blulouie]

After all these are literally the cheapest houses next to any football stadium in the country. Perhaps if you asked those people, they would'nt thank anyone for stopping them getting such a one-off windfall.

Very Tory this Tom.

 

[blueblood]

Just think naming rights, additional hosp, additional tickets especially in first couple of years could be a fair amount more than we currently get.

I know everyone thinks we're going to go bust and its all doom and gloom but we still benefit from huge revenues from TV and modest match day income that the additional from Bramley Moore should hopefully make a difference fairly quickly.

Better corporate facilities that can be used all year round, ability to hold large 1 off events/concerts, significantly more hospitality seats, increase in ticket prices.

People have to sign up for 3 years I believe.



Base figures show premium coming out to 12 million, the extra capacity 12-15 million. Add a naming sponsor (we won't be holding out like Spurs are for the top dollars) and it should balance out the repayment. Then you can say all the extra food and beverages, stadium tours, conferences/events, concerts, possible England games, Tournaments, Europa finals(?) can go into the pot to try and make us better on the pitch. Immediately.

For a comparison, Sunderland’s accounts this year show £8m from ‘Conference, banqueting and catering.’ This is their income from hosting concerts. The stadium is the single biggest thing making us an appealing asset to buyers at the moment.

 

[Kevsleftpeg]

And how much is that worth to us?

Bear in mind that 750million over 25 years is 30million a year, lets say 10million a year for normal seats, again, no idea how much Hosp is worth to us.

So unless its worth at least 20million a year, we barely break even.

Happy for you to highlight how im wrong with some data or a counter to my matchbox maths.

I don’t think that’s the correct way to value this sort of investment. We don’t necessarily ever need to pay that debt off provided we can afford the interest payments. Most pieces of infrastructure are never owned on an unfinanced basis by equity investors. They are financed and refinanced in perpetuity during the useful life of the asset. Provided the asset is covering the interest costs and providing an acceptable return on equity above those costs then it is a good investment. Whether BMD does that or not I have no idea. There will be a very complicated financial model comparing our revenue with or without BMD with a range of sensitivities affecting the outcome. Going over budget, losing naming rights money etc will obviously all feed into the equation. How much extra none match day revenue will the stadium generate because I don’t think Goodison generates any.

 

[Goat]

I don’t think that’s the correct way to value this sort of investment. We don’t necessarily ever need to pay that debt off provided we can afford the interest payments. Most pieces of infrastructure are never owned on an unfinanced basis by equity investors. They are financed and refinanced in perpetuity during the useful life of the asset. Provided the asset is covering the interest costs and providing an acceptable return on equity above those costs then it is a good investment. Whether BMD does that or not I have no idea. There will be a very complicated financial model comparing our revenue with or without BMD with a range of sensitivities affecting the outcome. Going over budget, losing naming rights money etc will obviously all feed into the equation. How much extra none match day revenue will the stadium generate because I don’t think Goodison generates any.

Fair enough mate.

Not even gonna pretend I know a thing about high level finance.

 

[Kevsleftpeg]

Fair enough mate.

Not even gonna pretend I know a thing about high level finance.

I’m a finance lawyer by trade so I have some knowledge but I don’t know how to model. Hopefully someone at Everton does.

 

[Goat]

I’m a finance lawyer by trade so I have some knowledge but I don’t know how to model. Hopefully someone at Everton does.

I presume its also easier to get finance for a fully built stadium over a partial built stadium?

 

[Kevsleftpeg]

I presume it’s also easier to get finance for a fully built stadium over a partial built stadium?

Definitely and the interest costs on an investment facility rather than a development facility will be a lot less.

 

[toffee66]

Fans will be surprised, and probably not pleasantly, when they see the non-premium full adult season ticket prices at BMD. The club will likely retain a lot of discounts for younger and older fans and possibly for a family area similar to the enclosure as they do realise the importance of this in retaining and building the fanbase so that will help affordability.

The full adult price in the Park End right now is £690 and it is comparable to the lowest level of provision at BMD. If I was making an educated guess I think the adult price range at BMD assuming 25/26 season is the first full season will range from £700-900.

I have been reliably told that the club has been estimating the revenue gain at BMD (excl. sponsor and commercial deals) at £45-50m pa in projections being used to pitch to potential stadium lenders. 70% of the lower figure is seen as ‘certain’ even on relegation. This uplift is a combination of premium and regular ticketing, in stadium/fan plaza spend, non-football events and facilities use for conferences, meetings etc.

To put what might seem vast number into context the higher capacity, luxury specified North London premium priced Spurs stadium generates roughly £100m in match-day revenues (excl. Europe) so this BMD projection likely assumes achieving less than half that matchday income total as part of that total uplift.

Without seeing seeing their detailed data I cannot judge on how reasonable this truly is but based on their Premium Pricing points as reported in various posts here and on Twitter it is likely that the income from 5500 premium seats alone will exceed match-day revenue at Goodison and could potentially double it.

Even with the most optimistic predictions about completion, initial financing, staying up and optimising ordinary seat pricing/use our interest costs on the build will be potentially punitive unless and until we can refinance. The caution of some posters on the initial boost we get, if any, is justified IMO, at least in the shorter term.

If we can get through the next few years BMD will give us secure mid table revenues at least helping us keep pace with eg West Ham, Villa but will not close the gap on the mega income clubs in any meaningful way.

 

[Kevsleftpeg]

Fans will be surprised, and probably not pleasantly, when they see the non-premium full adult season ticket prices at BMD. The club will likely retain a lot of discounts for younger and older fans and possibly for a family area similar to the enclosure as they do realise the importance of this in retaining and building the fanbase so that will help affordability.

The full adult price in the Park End right now is £690 and it is comparable to the lowest level of provision at BMD. If I was making an educated guess I think the adult price range at BMD assuming 25/26 season is the first full season will range from £700-900.

I have been reliably told that the club has been estimating the revenue gain at BMD (excl. sponsor and commercial deals) at £45-50m pa in projections being used to pitch to potential stadium lenders. 70% of the lower figure is seen as ‘certain’ even on relegation. This uplift is a combination of premium and regular ticketing, in stadium/fan plaza spend, non-football events and facilities use for conferences, meetings etc.

To put what might seem vast number into context the higher capacity, luxury specified North London premium priced Spurs stadium generates roughly £100m in match-day revenues (excl. Europe) so this BMD projection likely assumes achieving less than half that matchday income total as part of that total uplift.

Without seeing seeing their detailed data I cannot judge on how reasonable this truly is but based on their Premium Pricing points as reported in various posts here and on Twitter it is likely that the income from 5500 premium seats alone will exceed match-day revenue at Goodison and could potentially double it.

Even with the most optimistic predictions about completion, initial financing, staying up and optimising ordinary seat pricing/use our interest costs on the build will be potentially punitive unless and until we can refinance. The caution of some posters on the initial boost we get, if any, is justified IMO, at least in the shorter term.

If we can get through the next few years BMD will give us secure mid table revenues at least helping us keep pace with eg West Ham, Villa but will not close the gap on the mega income clubs in any meaningful way.

It could make us more attractive as a trophy asset though and maybe create a more positive vibe around club which has been stagnating and stuck in the last for decades.

 

[cooperman]

It could make us more attractive as a trophy asset though and maybe create a more positive vibe around club which has been stagnating and stuck in the last for decades.

This is my only viable hope really

Someone (or state) with enough cash to buy us despite our wonky finances due to the prestigious stadium that comes with it

 

[Ferguson1878]

Fans will be surprised, and probably not pleasantly, when they see the non-premium full adult season ticket prices at BMD. The club will likely retain a lot of discounts for younger and older fans and possibly for a family area similar to the enclosure as they do realise the importance of this in retaining and building the fanbase so that will help affordability.

The full adult price in the Park End right now is £690 and it is comparable to the lowest level of provision at BMD. If I was making an educated guess I think the adult price range at BMD assuming 25/26 season is the first full season will range from £700-900.

I have been reliably told that the club has been estimating the revenue gain at BMD (excl. sponsor and commercial deals) at £45-50m pa in projections being used to pitch to potential stadium lenders. 70% of the lower figure is seen as ‘certain’ even on relegation. This uplift is a combination of premium and regular ticketing, in stadium/fan plaza spend, non-football events and facilities use for conferences, meetings etc.

To put what might seem vast number into context the higher capacity, luxury specified North London premium priced Spurs stadium generates roughly £100m in match-day revenues (excl. Europe) so this BMD projection likely assumes achieving less than half that matchday income total as part of that total uplift.

Without seeing seeing their detailed data I cannot judge on how reasonable this truly is but based on their Premium Pricing points as reported in various posts here and on Twitter it is likely that the income from 5500 premium seats alone will exceed match-day revenue at Goodison and could potentially double it.

Even with the most optimistic predictions about completion, initial financing, staying up and optimising ordinary seat pricing/use our interest costs on the build will be potentially punitive unless and until we can refinance. The caution of some posters on the initial boost we get, if any, is justified IMO, at least in the shorter term.

If we can get through the next few years BMD will give us secure mid table revenues at least helping us keep pace with eg West Ham, Villa but will not close the gap on the mega income clubs in any meaningful way.

750 million pound ball ache just to keep up with the likes of west ham ah well least theyl be decent bevy’s there