Everton take a £14M loan

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davek

davek

Player Valuation: £150m
EVERTON have taken out a £14million loan - but manager David Moyes will not be making a big splash in what is left of the transfer window.

The club have borrowed the money from leading bank Investec against some of the media rights cash that they are due to receive this season.
But £9m of the loan will go to repay a similar mortgage taken out last year.
The rest has been used to sign Magaye Gueye and to fund new deals for Mikel Arteta, Tim Cahill, Jack Rodwell, Leighton Baines and Seamus Coleman.



NOTW.
 

what is our combined debt? there seems to be loads of mortgages against future season ticket sales, overdrafts, bridging loans, loans etc.

is a club of our size vulnerable to the leeds type scenario? we have not net spent (may be negligible) for nearly three years it seems and we don't pay mega-wages by premiership standards (pre-arteta anyway).
 
Leaving aside the depressing point about the chronic lack of investment for a second... the sums there state players have been secured with part of this increased loan. I'd hang fire and look at the balance sheet when the window closes. I'm convinced the Yak will be off and equally convinced Moyes wont spend anywhere near the money received - if any at all.
 

We don't know the terms of the loan, so we don't know as yet whether the debt has increased by any significant amount.

The only thing that it seems can be said with any certainty is that no member of the board has, is or will put his hand in his pocket for the club.

I'm surprised, perhaps naively, that none of the money is free for another signing. I'm staggered that a club of the size of Wolves can outspend us by £16 mill.

Still, as long as we can do the old traditional stuff, talk about the 30's and wag our tails in whichever way Bill would like us to wag them, no harm done, eh?
 
davek said:
Leaving aside the depressing point about the chronic lack of investment for a second... the sums there state players have been secured with part of this increased loan. I'd hang fire and look at the balance sheet when the window closes. I'm convinced the Yak will be off and equally convinced Moyes wont spend anywhere near the money received - if any at all.
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Strangely despite the lack lustre start to the season I don't actually think he needs to spend any money. He has a squad there capable of reaching the Champions League - so over to you Davey.
 
Neiler said:
Strange that it was in with the match report, one loan replaces another - seems the debt level stays the same which is managable.
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They've changed the structure of the foreign tv money part of the tv rights - so instead of upfront it comes in stages.

That incidentally is about £15million in value. So it looks like the club for cashflow reasons have taken the loan out to cover that.

Yes you're right debt level stays the same as it's presumably paid off as the season progresses and as each stage of the cash comes in.

Non story really. All about cashflows.

* News of the World sensationalist rubbish as per usual. Trying to [Poor language removed] supporters like Davek.
 
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Oh and incase anyone says anything about these Cashflow issues being a problem. They're not. Normal in any seasonal business.

The Investec loan means that EFC can adapt to the structural change in the TV rights payment system this year.

The club previously took out a £20million over draft facility in 2008 - which it apparently never needed to use thankfully, during the height of the financial crisis (to cover any disruption in cashflows). The fact that EFC obviously has a good relationship with their bankers means that the banks obviously have no issues with the liquidity of the company. Or that EFC would ever default on the loans.

And understood that this allows the club access to funds to fund new contracts and refinance a debt based on tv money now coming in in stages, not all in one summer payment.

So I'm Robert Elstone. I know I've got £15million in (extra) revenue coming in this year but I'll only get say 1/4 of that this August. I need to refinance a loan and resign 4 players. Cashflows been made tight by that new payment structure. What do I do? Talk to my bank. Arrange for a secured loan at a rate of say £1million interest to give me access to the cash NOW - so I can get several key members (including star player resigned) and restructure the short term finances (arranged on possibly on worse terms than I can get now too).

Has no effect on the normal club £80million revenue as this was a new foreign tv deal and predominantly extra revenues.


The banks know it is guaranteed revenue. Everton can do what needed to be done this summer. Everyone's happy.

* provided they perform on the pitch!
 
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Neiler said:
Strange that it was in with the match report, one loan replaces another - seems the debt level stays the same which is managable.
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Lets hope that "£9million new building" gets built ASAP - mate so that we can start increasing 24/7 - 365 day revenues on non matchdays.

Need to start getting Goodison generating cash every day!

And unlike Wyness the [Poor language removed].

Robert Elstones at least trying to do this for the club.
 
Matt Damon said:
Lets hope that "£9million new building" gets built ASAP - mate so that we can start increasing 24/7 - 365 day revenues on non matchdays.

Need to start getting Goodison generating cash every day!

And unlike Wyness the [Poor language removed].

Robert Elstones at least trying to do this for the club.
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Oh he's pro-active, and nobody can deny that fact.
 
GhostOfDixie said:
Oh he's pro-active, and nobody can deny that fact.
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Unlike Wyness who signed probably the worst commercial deal in EFC history with JJB Sports.

Took the money and ran and didn't ensure that JJB Sports upheld their part of the deal!



Far more time for Robert Elstone. Far more commercially astute. Who can actually work with other companies to get more money in to the club.
 

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