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

[riddick]

The assumption is that the Board do not subscribe for new shares:

The Board could issue 12,623 shares without giving up majority control. Now it is unlikely they would want to give all those shares to one investor as it would take that investor above 25% - 26.5% to be exact. That obviously has implications in terms of blocking extraordinary pieces of business at General Meetings.

Let's round it down for simplicity. If the Board issued 12,500 new shares they could raise the following amounts before expenses:

Share valuation £2,000, valuing the club at £70 million pre money - raise £25 million, wipe out Vibrac/JG style borrowings - limited appeal.

Share valuation £4,000, valuing the club at £140 million pre money - raise £50 million, wipe out Vibrac/JG borrowings, leave £25 million towards stadium/redevelopment ? - limited appeal

The conclusion must be that for an equity issue to be worthwhile (£100 million plus in my opinion) the Board would have to subscribe or lose control.

If they're not prepared to that then they should sell for reasons given many times before.

I don't know a thing about half the things you say bit the more I read them the less stupid I feel I become.

I'm lying to myself, mind, just I prefer to feel less dumb

 

[Chang Elephant]

Everton have refused to comment to the Echo on an update on WHP. I thought Bill said he was always going to be transparent with the fans?

He is transparent, will just hang on without putting any investment in to grow the business until the best possible sale price is achieved. If you can just learn to support Bill's bank balance rather than the club it makes it all seem good.

 

[Chang Elephant]

Hats off to all you business brains in here.

Cheers, but don't forget the Esk and Hibbo

 

[USABlue]

Cheers. Seems like the only exit option is a wealthy person with some sense of direction, preferably prior experience in sports, and appreciation of the unrealized potential, a la Mark Cuban.
















I was previously anti-Cuban, but now I'm turned pro-Cuban. Don't crush my dream.

mark cuban would be proper boss

 

[The Esk]

Cheers, but don't forget the Esk and Hibbo

lol

 

[hibbo'sclass]

I'm not sure that works for a number of reasons.

I also do not think you could get £4,000 a share based on a minority stake in a more indebted company with only partial ownership/rights to what would be a fairly low budget stadium.

Besides the above there's the small problem of no commercial partner in sight and the council are unlikely to gift the land or provide a subsidy.

If the club were to raise £50 million by way of a share issue then the sensible use of those funds would be to pay off existing debt and utilise the remaining capital to completely revamp our commercial activities, sponsorship deals and global reach.

The club would then be more attractive to a second purchaser, or perhaps the subscriber to the equity raise, to fund a new stadium from a more substantial financial position.

I agree with the 4k per share for minority interest, it's kind of what I was getting at earlier with my infamous 7,000 shares bit.

Just some musings, not fully thought through so feel free to take me apart as you wish

However....... if someone were to come in and pay 4k per share giving the 50m investment, lets say there are 5% underwriters expenses bringing it to 47.5mil.

All for paying down the debt, the only thing that I would say is that the only debt figures in the public domain are from May 14, for the club (not the group) were £26,924,000, VIBRAC + 6 million but assuming that firstly our overall indebtedness did not increase in either Sept 2014 or Aug 2015, what would the cost of clearing the debt actually be?

Presumably with early settlement charges etc, and on the assumption that the total debt level is still the same as May 2014,(the 6mil just with JG instead of A.N. Other), say that all of the £26,924,000 is now due to JG and the interest rate is the same as the old loan ie 8.8% which is allowed in full to reflect the early settlement, then the total repayable would be £29,293,312, leaving a balance of £18,206,688

By re-vamping the commercial activities/sponsorship deals, I am assuming that you are prioritising the Kitbag and Sodexo deals.

I will plead ignorance here, but is anyone aware of any break periods in either of these deals, if so when are they. Point I am making is bad as they are, can we buy our way out of them and make profits sufficient to justify doing so.

Or is it possible to repurchase Finch Farm with this money?

Where am I going with this - if we were paying a 25 year mortgage of £200,000,000 mortgage at 8% it would "only" cost £1,543,632.44p per month or £18,523,589.28p per annum. Leads to a positive cashflow of over 10 mil per annum. Unfortunately can't upload it, but used the Excel Loan amortisation spread sheet.

Now I know that no-one in their right mind is going to give a 100% mortgage on a stadium, but it is merely an illustration of what could be done if the debt were expunged in accordance with the thoughts of @the esk .

I'm going to turn computer and phone off so I get no alerts to tell me to stop talking rubbish.

 

[hibbo'sclass]

He is transparent, will just hang on without putting any investment in to grow the business until the best possible sale price is achieved. If you can just learn to support Bill's bank balance rather than the club it makes it all seem good.

So cynical so young mate.

 

[Chang Elephant]

So cynical so young mate.

I just think FLHD's hit the button with his summation of the board there. We can post hypothetical financial outcomes all we want, but enjoyable as it is, Bill and his friends will not give a flying shiny poo unfortunately mate.

 

[magicjuan]

I just think FLHD's hit the button with his summation of the board there. We can post hypothetical financial outcomes all we want, but enjoyable as it is, Bill and his friends will not give a flying shiny poo unfortunately mate.

There's an element of 'can't' in there too

 

[Blake]

...Besides the above there's the small problem of no commercial partner in sight...

Hopefully the new Head of Commercial Partnerships can help in that respect. Not sure if he was brought in on the back of the Power8 fiasco, with WHP in mind, or just generally to improve commercial interests.

 

[hibbo'sclass]

Hopefully the new Head of Commercial Partnerships can help in that respect. Not sure if he was brought in on the back of the Power8 fiasco, with WHP in mind, or just generally to improve commercial interests.

What's your take on the situation regarding the opportunities available mate?
I think I'm right in saying that Joe Anderson mentioned a statement on WHP at the end of October, but not really up to speed on that side of things.

 

[Blake]

What's your take on the situation regarding the opportunities available mate?
I think I'm right in saying that Joe Anderson mentioned a statement on WHP at the end of October, but not really up to speed on that side of things.

No idea. I don't believe WHP will ever get off the ground, so I've not wasted much time thinking about it.

In terms of the new HoCP in general, I don't know him. But people who have worked with him have been positive. So fingers crossed he has a positive impact on the commercial side of the business in generally. I guess it will take some time before we see the results of any new success.

 

[The Esk]

new Head of Commercial Partnerships

Hi mate, do you mean Richard Kenyon or someone else?, thanks.

 

[hibbo'sclass]

Hi mate, do you mean Richard Kenyon or someone else?, thanks.

Alan McTavish from Watford FC mate. Know very little about him except he hasn't had time to change his linkedin website from watford yet!, Formerly with Rangers.

 

[kanie46]

Intersting read onLinkedln.