Usmanov

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Efcjake said:
Oh you mean like the 100 million interest free loan we repaid with a share issue that got you kicking off in the first place?
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Don't you get it Moshiri is putting money into the club through soft loans and questionable commercial deals with USM, yet we are still having to take out a high interest loan with RMFL.
 

gwladysnight said:
The point is that the chances of us being effectively owned by Usmanov are slim to Nil. Personally I think we are almost certainly owned by Moshiri, and we have to start to wonder how long he will be able to keep funding the losses we are sustaining.

I think Everton has very little credibility to borrow money cheaply. We have posted a quarter of a billion of losses over the last three years, and we are almost entirely reliant on TV revenues for income. We are in a situation in which wages are 85% of our turnover. That is unsustainable.

As you say we now need to find the funding to build BMD. Who is going to lend money to a company that can't even get a revolving credit facility at a decent rate.
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Well the finance for the stadium is going to add an asset worth 500 million to the balance sheet.

These other loans you are talking about are cash flow operating loans. As others have pointed out Chelsea use the same folks and likely get similar terms due to the short term high value nature of the agreement.
 
Efcjake said:
So what's the difference between FSG arranging a loan and having LFC pay them back in installments or Moshiri giving the club an interest free loan and accepting repayment in the form of equity with shares valued at the market price?
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The difference is that we are still having to go to a murky offshore company for expensive loans whilst the likes of United and Liverpool are able to borrow from traditional banks at a much lower rate.

What happens when Moshiri can no longer afford to bankroll us, and where do we get the financing for BMD from ?
 
gwladysnight said:
Don't you get it Moshiri is putting money into the club through soft loans and questionable commercial deals with USM, yet we are still having to take out a high interest loan with RMFL.
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There are limits on how much money he can pump into the club through FFP each season. Why not maximize that with a loan?

The loan allows us to manage our cash flow to spend ahead of receiving the TV money.

Lol at questionable commercial deals with USM. Be less obvious.
 
Efcjake said:
Well the finance for the stadium is going to add an asset worth 500 million to the balance sheet.

These other loans you are talking about are cash flow operating loans. As others have pointed out Chelsea use the same folks and likely get similar terms due to the short term high value nature of the agreement.
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Chelsea do not use the same people. Check their accounts they have not had a charge placed on them since 2006.
 

gwladysnight said:
The difference is that we are still having to go to a murky offshore company for expensive loans whilst the likes of United and Liverpool are able to borrow from traditional banks at a much lower rate.

What happens when Moshiri can no longer afford to bankroll us, and where do we get the financing for BMD from ?
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They have much more asset value to secure loans against than we do.

That's like saying why aren't I being approved for a low rate mortgage when you can barely come up with a down payment.


You're also conflating a short term high value loan that expires annually with a long term financial agreement that will be paid off over 50 years or so.

Those interest rates will never be the same. So this doom and gloom game you are playing doesn't really stand up. We would never be paying 7% on a 50 year agreement.
 
Efcjake said:
There are limits on how much money he can pump into the club through FFP each season. Why not maximize that with a loan?

The loan allows us to manage our cash flow to spend ahead of receiving the TV money.

Lol at questionable commercial deals with USM. Be less obvious.
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There aren't limits regarding FFP. Owners can put as much money as they want in to the Academy and Stadium. Plus FFP disregards losses due to COVID. So there is absolutely no need to borrow against future TV revenues.
 
Efcjake said:
They have much more asset value to secure loans against than we do.

That's like saying why aren't I being approved for a low rate mortgage when you can barely come up with a down payment.


You're also conflating a short term high value loan that expires annually with a long term financial agreement that will be paid off over 50 years or so.

Those interest rates will never be the same. So this doom and gloom game you are playing doesn't really stand up. We would never be paying 7% on a 50 year agreement.
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What are you talking about 50 years for. United and Liverpool both have Revolving Credit facilities that are fixed until 2025. They are short term credit facilities that can be drawn down or paid back at will.
 
gwladysnight said:
There aren't limits regarding FFP. Owners can put as much money as they want in to the Academy and Stadium. Plus FFP disregards losses due to COVID. So there is absolutely no need to borrow against future TV revenues.
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But this money wouldn't be getting used for the academy or stadium.

This money is used to buy players.
 
gwladysnight said:
What are you talking about 50 years for. United and Liverpool both have Revolving Credit facilities that are fixed until 2025. They are short term credit facilities that can be drawn down or paid back at will.
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Because you were trying to imply that we would be looking at a 7% rate for the stadium financing which is a laugh.
 

gwladysnight said:
The difference is that we are still having to go to a murky offshore company for expensive loans whilst the likes of United and Liverpool are able to borrow from traditional banks at a much lower rate.

What happens when Moshiri can no longer afford to bankroll us, and where do we get the financing for BMD from
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Spurs took out a Covid Corporate Financing Facility loan of £175 million with the Bank of England at a interest rate 0.5%.

Arsenal did the same and took out a £120 million loan at 0.5% as well.
 

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