New Everton Stadium - Hill Dickinson Stadium

[chewee]

Worth noting Moshiri cleared most of our debt.

How much were we paying out in interest prior to that, £5 millionish? Are people really upset we'all be paying just £9 million extra for a new ground. The naming rights and increase in commercial income will dwarf any outing figure.

 

[Efcjake]

So who are we paying the loan back to mate? I understand if it's like a mortgage, and the council are a holding firm to help get us a better deal. I wonder who's lending the 300 million initially, or is this still to be decided?

Council holds the mortgage and we pay back the council. Nobody has been identified as the sourced of financing, probably because we don't know the exact specifics required.

 

[d4kyxx]

No

Everton get a 300 mil loan that they pay bk 10 mil a year over 40 years, as the council have given us the ability to get cheaper funding we pay them 4.4 mil a year.

We own the stadium, the stadium is ours

So This 300m costs us 14.4m a year for 40 years? So will end up costing us 576m

Almost double what we are actually borrowing!?

 

[catcherintherye]

Really I wouldn't pay too much attention to the rumours going around. He's definately looking to sell the naming rights but there's no reliable info on price. I would imagine it would be for 20 years or so similar to The Etihad and The Emirates.

The club seem to be gearing up to announce that it is the last season at WHL though, they have been inviting every legend still alive to the stadium recently and recording fair well videos etc.

Exciting times hey! 400 million could be spot on, especially for a long term deal of say 20 years. Without being too big headed, if you got 400 million I'd hope we could get 200 million, which would help substantially in repayments. It's a ball parking exercise really.

 

[SpongeBob brown shoes]

I'll throw a massive hypothetical into the works. From my knowledge of SPVs before today another use of them is to obscure relationships between different companies/owners to prevent direct conflict of interests (that specific side of it is incredibly murky waters)....

???

That's exactly how I see it

We get a funder to build the stadium let's call him, I don't know 'Usmanov'

'Usmanov' has a conflict of interest and can't build a stadium for a competing company 'EFC'

So 'Usmanov' builds a stadium which can be used for entertaining events like concerts, shows, sports, *cough* football*cough* and leases it to Liverpool city council to use 'LCC'

'LCC' lease that property to who they want 'EFC'

'EFC' pay 'LCC' the cost of the rent they have to pay to 'Usmanov' plus an extra 4.4 mil as a annual security fee which 'LCC' keep

EFC get a new stadium

LCC get 4.4 Mil a year for 40 years without having to outlay anything in cost

Probably way off like, what do I know

 

[ashwuk76]

How would that work mate? You are brighter than me! If you don't want it put out for public reading feel free to PM (it would br greatly appreciated). How would using the council and making Everton appear as tenants allow for say Usmanov to be involved?

If that were the case, would we be likely paying off any of the capital? It looks like we are liable to only interest payments currently.

I don't actually know anything honest I am just trying to interpret what I've read in the document. It's my opinion really.

If say usmanov or one of his companies funds this.. then as I read it because whoever funds this leases the site to the council.. then usmanov isn't directly funding the stadium.. he is funding a company that the council own. We then sub let from the council.. thus have a degree of separation from usmanov.

If anyone questions it he would come out and say he is funding the regeneration of Liverpool and not directly everton.

But like I say that's just my opinon. I have zero inside knowledge.

 

[catcherintherye]

So This 300m costs us 14.4m a year for 40 years? So will end up costing us 576m

Almost double what we are actually borrowing!?

That's the case with most investments though isn't it? The price of money in 20 never mind 40 years time will be vastly different than it is today.

 

[Tubey]

Cos WE arnt. Others will finance it down to the LCC guarantee thing. Which I still dont really get.

... and is the reason I am massively underwhelmed.

Sure, it could be Moshiri funding it, but he's doing it in such a hands-off way that it's quite bizarre to me.

It could be a proxy for Usmanov of course, but in that case it's just downright shady.

 

[MrGrumpy]

So who are we paying the loan back to mate? I understand if it's like a mortgage, and the council are a holding firm to help get us a better deal. I wonder who's lending the 300 million initially, or is this still to be decided?

Still to be decided but thier are apparently loads of ppl wanting to put the money forward

 

[RobSpurs]

It's not me having a slight at Everton here mate, it's just a first impression. Moshiri is gaining a new stadiums worth of value to his investment in Everton without any risk at all... that sounds ok to you?

He's wealthy but he's not in the same league as Chelsea's or City's owners. Everton were never going to be gifted a stadium by their owners who are, in the end, businessmen. They'll take whatever loans present the least risk to them to get the thing built. It offers Everton a marginal advantage in that their interest repayments will be smaller because LCC is acting as the guarantor but the club still pays for the stadium in the end. Perhaps they couldn't get funding AT ALL without this?

Of course, it grates a little as I can't imagine Haringey ever offering something similar - LCC really are going the extra mile here, and without their hand being forced. But on the other hand, this arrangement does mean Everton will technically be tenants for a while, and whether that affects them in other ways I don't know. At the end of the day another big English club is getting a new stadium, and that's got to be a good thing. Like us, they deserve it.

BTW, how did you change your avatar? Everytime I try to upload a pic it comes up as broken???

 

[The binman chronicles]

So This 300m costs us 14.4m a year for 40 years? So will end up costing us 576m

Almost double what we are actually borrowing!?

Similar to any other mortgage.

 

[Efcjake]

Anyone else

I have no idea tbh about FFP, I was just thinking out loud.
Whole thing stinks though and was set up to keep certain clubs at the top table once Man City fast tracked their way in.

Well it was meant to prevent owners spending more than the could afford on players like Leeds and Pompey.

They're OK with us going bankrupt because we were too ambitious in our stadium construction.

 

[The Rhino]

Fantastic news. Don't be hung up on the logistics as it's a very complicated deal just enjoy the fact that we are at a solid platform to kick on with this and once planning permission is given happy days.

We will definitely have atleast 55k seater Moshiri will want to have the biggest stadium in the city no club realistically will build a new ground at 50k or less now only redevelopments to existing grounds as it's a waste of money.

Exciting times blues!

 

[VentureBrosEFC]

59% of fans voted to move to Kirkby

This has much less baggage. You know that.

 

[d4kyxx]

That's the case with most investments though isn't it? The price of money in 20 never mind 40 years time will be vastly different than it is today.

Surely it would be cheaper for Moshiri who has 300m easy to loan it us? If we pay him 15m back a year it will be paid back in 20 years