Farhad Moshiri

[The Esk]

Was the £87.5m disclosed?

It's a private arrangement between the buyer and the sellers in a private company so there's no formal requirement for the company or the shareholders to disclose anything publicly. It was reported that the transaction valued the club at £175 million or £5,000 per share, hence the £87.5m figure.

 

[ultra]

I'm guessing this is the correct thread to place this info, this could have already came up on this thread but if it hasn't I feel it's worth mentioning.

Was talking to someone today, they claimed to know someone with a bit of ITK knowledge, and he was saying basically Moshiri already "owns the club" so to speak, and as we know, according to the Esk, a gentleman's agreement is in place with Moshiri and the board. He told me Moshiri paid out 60 million to Bill K and said another 50 or 100 million was paid out elsewhere. He said the main reason behind Moshiri not purchasing the club in full was due to the debt Kenwright and Co currently have outstanding to the club and if he was to become the owner he would also inherit said debt of which he has no intention of paying.

Just wondering if @The Esk or anyone else with some insight knows if there is any truth im this and if so could they perhaps go into more detail. Cheers.

If I remember correctly, @The Esk has previously suggested that if Mr Moshiri has more than his current percentage, then he becomes liable for the Prudential loan. However, he also said that the percentage would be increased to 75% in the coming months, so it clearly is not a long term problem.

No doubt @The Esk will be along later to clarify since I am at the abacus level as far as finances are concerned...

 

[We'veGotTonyHibbert!]

Hi mate, Moshiri owns 49.9% currently and has legally binding options to acquire just over 75% of the shares in the future. The exact terms of the options are not disclosed, but he will end up with over 75% as a result of them and therefore have complete control of the club.

He purchased 49.9% because he did not want to trigger a change of ownership (above 50%) which may have necessitated the club repaying the secured Prudential/AIB loan.

I don't know where the person you spoke to got the figures of £60m to BK, plus £50 -100m elsewhere, from. He paid £87.5 million in total for his 49.9% stake to the selling shareholders.

Thanks for your reply Esk, it's seems what you said is what he was getting at in his explanation, but obviously had been misinformed through the Chinese whispers.

So am I right in guessing Moshiri is expecting the debt to be repaid by the others (Bill & Co) before he acquires the 75%? Otherwise he would've just bought outright initially surely, or is he planning to wait 'X' amount of years while the loan is paid off by the club before he decides to acquire the 75%?

 

[ToffeeDoug]

It's a private arrangement between the buyer and the sellers in a private company so there's no formal requirement for the company or the shareholders to disclose anything publicly. It was reported that the transaction valued the club at £175 million or £5,000 per share, hence the £87.5m figure.

Yes, my head said £5k from those figures. Traditionally, shares have traded privately, for what, £1250? Maybe a lot of single share holding fans will gulp at £5k.

 

[Goat]

Thanks for your reply Esk, it's seems what you said is what he was getting at in his explanation, but obviously had been misinformed through the Chinese whispers.

So am I right in guessing Moshiri is expecting the debt to be repaid by the others (Bill & Co) before he acquires the 75%? Otherwise he would've just bought outright initially surely, or is he planning to wait 'X' amount of years while the loan is paid offor by the club before he decides to acquire the 75%?

He probably got his info off Damo.

 

[onlyme]

Have you seen the revenues Arsenal make?

Somebody would buy 30% of arsenal tomorrow.

Yes i would too, based on a valuation that suited both parties, however there are some(unfortunately I'm not one of them) who achieve the status of filthy rich and seek a different course to motivate their ego.

 

[The Esk]

Thanks for your reply Esk, it's seems what you said is what he was getting at in his explanation, but obviously had been misinformed through the Chinese whispers.

So am I right in guessing Moshiri is expecting the debt to be repaid by the others (Bill & Co) before he acquires the 75%? Otherwise he would've just bought outright initially surely, or is he planning to wait 'X' amount of years while the loan is paid off by the club before he decides to acquire the 75%?

The debt is the company's debt not that of individual shareholders. I'm pretty sure once the stadium is resolved - new stadium/Goodison refurbishment, then the Pru loan will be resolved by the company (Everton), not directly by Moshiri, although clearly he will be providing the capital in the future.

 

[The Esk]

If I remember correctly, @The Esk has previously suggested that if Mr Moshiri has more than his current percentage, then he becomes liable for the Prudential loan. However, he also said that the percentage would be increased to 75% in the coming months, so it clearly is not a long term problem.

The company (Everton) is liable for the debt, not individual shareholders.

 

[ToffeeDoug]

There are a lot of 'fans' going to Arsenal now and paying top whack now who barely knew that Arsenal even existed in their Highbury days. In years to come are Everton likely to tap into a rich echelon with no current interest in us?

 

[Goat]

There are a lot of 'fans' going to Arsenal now and paying top whack now who barely knew that Arsenal even existed in their Highbury days. In years to come are Everton likely to tap into a rich echelon with no current interest in us?

No.

 

[We'veGotTonyHibbert!]

The debt is the company's debt not that of individual shareholders. I'm pretty sure once the stadium is resolved - new stadium/Goodison refurbishment, then the Pru loan will be resolved by the company (Everton), not directly by Moshiri, although clearly he will be providing the capital in the future.

Cheers Esk, appreciate you taking the time to clear that up mate.

 

[ToffeeDoug]

The debt is the company's debt not that of individual shareholders. I'm pretty sure once the stadium is resolved - new stadium/Goodison refurbishment, then the Pru loan will be resolved by the company (Everton), not directly by Moshiri, although clearly he will be providing the capital in the future.

How will that new capital be introduced into the club? Low interest loans?

 

[The Esk]

How will that new capital be introduced into the club? Low interest loans?

Highly unlikely - it will be through the issue of new ordinary shares or perhaps a new class of preference shares.

 

[ToffeeDoug]

Highly unlikely - it will be through the issue of new ordinary shares or perhaps a new class of preference shares.

How will the rumoured extra funding in the summer for transfers be achieved?

 

[Shu Ren Dennis Ng]

Sorry mate, that's not right - there are no recent financial problems and there would be no cause for the Pru/AIB to call in the securitised loan. We'd have to default on the loan conditions and that's never going to happen now.

Sorry, was thinking more in terms of the scandals with Green (I think). Was anyone Everton related named in the Panama Papers?