The Everton Board Thread 2015/16 [ Not takeover related ]

[Mutzo Nutzo]

I'm not up-to-date on British financial terms, but as I understand it "booking a charge" is the same as "arranging a loan" or "agreeing to a letter of credit." It's a vehicle through which an entity can borrow money, but it is not itself the borrowing (or drawing down) of these funds.

Any business that expects to receive a significant portion of its turnover in May but has expenses from now until May will book such a charge/loan/LOC to make payments if present cash is less than future expenses, and then will pay off the loan at the end of the term from future proceeds.

It doesn't look to me any more complicated than that; this seems to be a normal business practice. As ESK has suggested, this could be a financing structure to arrange a large transfer (more hopeful than me, I admit), or as I've suggested it's simply a structure to bridge the gap between everyday expenses (for 10 months) and receipt of the PL broadcast funds.

The issue here is the lenders/facilitators of the loan is Robert Earl (Vibrac) This is a board member who has never invested a penny in us and yet apparently has been providing the loans with high interest rates ...This is why we have no money - this is where the Arteta money went. And now Apparently Phil Green is getting in on the act with JG Holdings. Question is why do keep needing these bridging loans?

 

[The Esk]

You're such a [Poor language removed] clown

No need mate, please keep the debate respectful - thank you

 

[Hellerad]

Spoiler

 

[SerenityNigh]

Exactly my point mate. You have the facility and you draw it down. That's what this JG Funding loan is. So it can only be £10m to invest in a new player. The cash flow works itself out from August to June roughly speaking for a football club like Everton without significant off field commercial activities.

Sorry--was unclear why you asked the question in the first place. I thought you were after a different response.

 

[The Esk]

The issue here is the lenders/facilitators of the loan is Robert Earl (Vibrac) This is a board member who has never invested a penny in us and yet apparently has been providing the loans with high interest rates ...This is why we have no money - this is where the Arteta money went. And now Apparently Phil Green is getting in on the act with JG Holdings. Question is why do keep needing these bridging loans?

There's no direct evidence to make those claims though mate. Circumstantial evidence perhaps, but no-one has provided conclusive proof.

 

[Chang Elephant]

Allegedly?

Definitely allegedly, however....

http://www.theguardian.com/football/2009/jan/20/david-conn-everton-robert-earl

When Keith Wyness, Everton's former chief executive, resigned from the club last summer he was reported to be unhappy with Green's involvement in the club.

http://www.dailymail.co.uk/sport/article-1052847/Dein-backs-ease-cold-war-Arsenal.html

Green also explained that his only link with ex- Everton chief executive Keith Wyness was that Earl was holidaying on Green's yacht and met Wyness for talks about his recent departure

http://www.thisismoney.co.uk/money/markets/article-1603795/Green-at-heart-of-Everton-battle.html

Green played a major role in the acquisition of a key 23% stake in the Merseyside club by Planet Hollywood tycoon Robert Earl from Everton board member Paul Gregg, the cinemas and leisure multi-millionare.

However, it is understood Green's involvement in the deal - at a time of unprecedented interest in the ownership of top Premiership clubs - is just the culmination of a longrunning relationship with Everton's other major minority shareholder, impresario Bill Kenwright, which also saw Green play a key role in the controversial sale of England superstar Wayne Rooney to Manchester United.

 

[bourneblue]

The issue here is the lenders/facilitators of the loan is Robert Earl (Vibrac) This is a board member who has never invested a penny in us and yet apparently has been providing the loans with high interest rates ...This is why we have no money - this is where the Arteta money went. And now Apparently Phil Green is getting in on the act with JG Holdings. Question is why do keep needing these bridging loans?

Do you have any proof of those high interest rates,as opposed to those offered by mainstream banks ?

 

[magicjuan]

We used Barclays for years and that done nothing to quell the multitude of conspiracy theories being posted by the usual suspects. Remember "tick tock tick tock" ?

You still using that usual suspects nonsense? IIRC the whole tick tock thing was about something completely different altogether

Barclays did withdraw credit from the club, but how long ago was that? Other posters, usually, tell us the economic model was fine, could be more kosher now though..

 

[The Esk]

At the end of the day, this thread, the whole saga about offshore loans, a lack of spending in the transfer market, no prospect of a new stadium is down to one thing and one thing only - the lack of capital in Everton as a business.

Unequivocally that is the fault of the Board.

 

[SerenityNigh]

The issue here is the lenders/facilitators of the loan is Robert Earl (Vibrac) This is a board member who has never invested a penny in us and yet apparently has been providing the loans with high interest rates ...This is why we have no money - this is where the Arteta money went. And now Apparently Phil Green is getting in on the act with JG Holdings. Question is why do keep needing these bridging loans?

Well, (1) RE = VIBRAC is speculation, not proved. If proved, serious problem perhaps, since he should report all related-party transactions. Nobody seems to be complaining that Abramovich or Lerner are financing their own clubs, so I suppose that's not your complaint either.
(2) Arteta money spent on interest payments for financing? That's news to me, I thought it always was obfuscated through OOCs. Even if the VIBRAC loan was £15m at 10% interest, it would take nearly 7 years to siphon away the Arteta money through interest payments. This would be a terribly inefficient fraud scheme (maybe why it's such a perfect plan... ? *No)
(3) Everton need the bridging loans because the board have no cash balance in the accounts (having purchased a bankrupt club) and have not found the commercial wherewithal to create this cash balance (unless players are sold to balance the books, which has been the board's MO).

Seems like all your questions are answered?

 

[bourneblue]

Tick tock was applied to both the Barclays and Vibrac loans being called in.

 

[hibbo'sclass]

Is there any evidence that Robert Earl has anything to do with Vibrac -no. Unless the auditors of EFC accounts have been lied to that is, as if it were him there would have to be disclosure in the group and comoany accounts.
JG Funding has only just kicked in as a lender to everton, but if you read my previous post on this thread, you will see that it still has 3 charges outstanding to Mousehole and 2 nee one's to IOM Companies.
Everyone seems to start off at the point that the originator of the loans is Philip Green and/or Robert Earl with no concrete evidence.
Would love to be proved wrong, but .....
As to why we can't get an investor, here's sometimg else to consider that seems to make no sense at all, but please read on
The 3 main shareholders own about 70% of shares.
Any business that requires a special resolution needs 75% +1 vote so buying the triumverate out does not gain control of the company. In fact until 90%+1 of shares are owned, the minority shareholders can still cause grief by calling EGMs as long as they fund the cost.
The upshot of this is it could be said that the current board don't own enough shares!!!!!!
I will now await my shouting down which I shall take in good grace.

 

[marty mcfly]

Look it's pretty clear what has happened. Earl bought shares in 2006 thinking the Destination Kirkby project would be a goer. Green has probably lent money to Kenwright. They both expected to get their return when Everton moved into their new stadium and found a buyer.

Both are now stuck with money tied up in an asset which they never banked on that isn't making them any return until Everton find a way of building a stadium. So in the meantime they have agreed to be the loan partners for Everton and in return make a modest amount which is probably close to market rates. It's better for them because at least they are making something and suits Everton who would need to borrow the money of someone.

The question as others have put is now that Everton are making more in TV money are these loans necessary and if not then there's a conflict of interest.

 

[Chang Elephant]

These demands for absolute evidence when we're dealing with billionaires, BVI hidden ownership companies, high ranking board employees that turn mute when leaving due to NDA's.....just a touch worrying

 

[marty mcfly]

These demands for absolute evidence when we're dealing with billionaires, BVI hidden ownership companies, high ranking board employees that turn mute when leaving due to NDA's.....just a touch worrying

Exactly we aren't a court of law. Surely it's up to the directors to prove these allegations aren't true not the other way around.