777 Partners / Whatever the hell you like

[Billy Dean]

 

[pfim]

So why would the MSP £100m "removes any threat of administration", but a few days later, apparently a £20m loan puts administration back on the table?

I get the terminology around working capital, but money owed is money owed.



& this is a good point, and one I made at the time - that money wasn't new and was long known.

On the face of it, these two comments contradict each other. How does something that was already completed funded stave of administration?

Unless he is saying that MSP considered the monies due when it was clear their complete investment would not close.

 

[Ferguson1878]

If we take it the stadium is to be handed over in Dec next year and we still have to raise 250 mill for the remaining cost, you can assume its about 16-17mill a ]

Now I'm but the following wouldn't surprise me.....

1. 777 can't complete on the deal either because they fail the fit and proper owner test due to the ongoing fraud investigation or are unable to come up with the funds or MSP or other lenders object to 777 under the probable change of ownership provision within the loan agreements.

2. Moshiri can't / won't fund the stadium and day to day finances.

3. No other acceptable buyer comes forward.

4. Everton go into administration with a points deduction and relaxation is guaranteed.

5. In those circumstances Everton become a very attractive investment opportunity for someone with ready cash to acquire relatively cheaply albeit they will have to finish the stadium and rebuild the team from the championship.

Genuinely if 777 fails I see no alternative scenario.

I'm not. I'm looking at all possible scenarios.

Don't you find it odd that straight after the announcement of the deal we get a loan to "keep the lights on"?

A business just doesn't go "oh yeah, can you lend us £20mill too?" after announcing it's got prospective buyers.

It's strategic. It's allowing 777 in without them being hands on.

i think there scaring the fans into thinkin 777 or bust

 

[Marius57]

Think pretty much any owners are fair game now to take over after the Saudis, regardless of any changes they have since made to ownership rules.

 

[AndyRJ]

So why would the MSP £100m "removes any threat of administration", but a few days later, apparently a £20m loan puts administration back on the table?

I get the terminology around working capital, but money owed is money owed.



& this is a good point, and one I made at the time - that money wasn't new and was long known.

It's reported wrong clearly.

I was under the impression that the loan from MSP was to fund future expenditure on the stadium but it appears that it wasn't and we owed it all to LoR.

The new loan from 777 appears to confirm the fact that the money is already gone. So if we agree that it has then we are back to owing £15-20m to LoR each and every month on top of our other regular running costs. This is completely unsustainable.

Given Moshiri seems unable to obtain any further funding for the stadium then if the 777 deal fails, where is that money coming from because the club clearly doesn't have it.

 

[Melchizedek]

Yup.

I find it difficult to believe we're on the brink of administration overnight... having just got £100mill for the stadium... having just announced a proposed takeover... having just pocketed something like £60mill in transfer fees...etc...

Unless it's what's we're told to believe. And what we're being told is 777 is our White Knight.

I see what you're saying, but we've also seen several players sold in recent windows for good sums without much of that money being reinvested back into the squad.
I think the signs have been there that we are in a bad financial state. It may not be as dire as 777 or administration, but the business of Everton FC is a disaster right now.

 

[blueblueskies]

Given the source I have no doubt that it’s based on something his mate said to him in the pub

 

[Shibbywiggles]

Yeah, a gang of murderers and oil tycoons reckon there might be something shady going on at 777 riiiiight

 

[Dixieslaces]

The distinction between working capital and infrastructure investments can also justify differences in interest rates, the rumoured 777 standard is 18% while MSP was 10-12% or something.

Additionally, it is weird that 777 who themselves are rumoured to not have too much working capital can loan that very specific amount regularly with their history of late payments.

I suspect that the deal between 777 and Moshiri is already in effect and that Moshiri is merely paying the bills through 777, he might be one of the 'partners'.
This way if the original deal value is 500-550m between Moshiri and 777 and they continue until 'That' day, Moshiri could hold out for 200m from a new buyer and 777's loans can survive the takeover (from which he can cash out later).

Edit: Oh yeah before you call me crazy, for 777, 18% is a considerable interest rate and club probably cannot afford to pay that. So, we may end up converting it into equity and voila we are Sevilla.

Am i right in assuming that the rate charged is similar if not the same as LIBOR, inter bank lending and are they regulated similar to here by a body like FCA?

 

[kenada_blue]

I see what you're saying, but we've also seen several players sold in recent windows for good sums without much of that money being reinvested back into the squad.
I think the signs have been there that we are in a bad financial state. It may not be as dire as 777 or administration, but the business of Everton FC is a disaster right now.

We also have to show the club in profit for the independent commission hearing.

We made a loss of something like £40mill last season. Those sales clear that and should put us in a profit as a club this financial year. Wage bill will be massively reduced also.

It's all an exercise in keeping the league happy

 

[Gordon Lee's Cushion]

Why would they loan us money to stop us going into Admin.....then to want us to go into admin ???

I didn’t say they were, I said it might suit them. That £20m would be well worth it if our value dropped significantly after admin.

 

[Eggsyblueskin]

Since the FCA have been brought into the approval process , I still find unlikely this group will pass.
One look at their financial history would suggest they lack financial probity.
I remain convinced they will not be approved for ownership because of the considerable financial question marks that hover around them.
The FCA are not going to allow any dubious organisation pass a test they have been brought in to oversee.

 

[pfim]

I didn’t say they were, I said it might suit them. That £20m would be well worth it if our value dropped significantly after admin.

They won’t be able to compete if it comes to that. People with real cash will enter the conversation.

 

[Moomin]

Think pretty much any owners are fair game now to take over after the Saudis, regardless of any changes they have since made to ownership rules.

You would be wrong.

FCA are involved now in the decisision by the Premier League, can't see them putting approval to any investor or group.

 

[Moomin]

Since the FCA have been brought into the approval process , I still find unlikely this group will pass.
One look at their financial history would suggest they lack financial probity.
I remain convinced they will not be approved for ownership because of the considerable financial question marks that hover around them.
The FCA are not going to allow any dubious organisation pass a test they have been brought in to oversee.

100% percent this.