Lessons from Lerner: Relevant to Everton

[toffee matt]

Just don't hire Martin O Neill

That's all

 

[hibbo'sclass]

No. Lerner LOANED much of the money then recouped management fees plus interest on it per year.

Even then the loans were badly spent. That did nothing to improve revenues and pay down debt or at least cover increased costs. That is the point.

Loans badly spent I agree with.

There were loan notes issued, but the interest rate was 2% over LIBOR so cheap borrowings, and it would appear that about 85 million of notes were also converted to share capital in 20q5 year end alone.
There was also an interest waiver of about 20mil in 2011 (from memory)
The holding company's issued share capital rose from 38mil at the end of the first accounting period to 315mil at 31 May 2015, so between cash injections and conversions of loans Randy Lerner has invested about 315 mil of his own money - exceptionally large oops on that one.
The loan note balance at 31 May 2015 was just over 10 mil on which the interest for the year was under half a mil.
No evidence to support a management fee in audited accounts as no related party transactions other than arms length sales to RL which were settled after the year end.
Glad to be of help.

 

[RomanReigns]

did lerner ever attend many villa games?

as far as I am aware moshiri has been to every one of ours since he took over?

could be wrong...could be right

 

[Goat]

Not one single outside penny has been put into Everton in 15 years from the owners. Until this year.

The owners have never put a penny in Damo, so dunno why you said until this year.

 

[AndyGray]

Last person to put in money was Peter Johnson - who took them back a year later....

 

[bizzaro]

The owners have never put a penny in Damo, so dunno why you said until this year.

I was referring to the period of Bill Kenwright'a chairmanship. Obviously.

 

[bizzaro]

Loans badly spent I agree with.

There were loan notes issued, but the interest rate was 2% over LIBOR so cheap borrowings, and it would appear that about 85 million of notes were also converted to share capital in 20q5 year end alone.
There was also an interest waiver of about 20mil in 2011 (from memory)
The holding company's issued share capital rose from 38mil at the end of the first accounting period to 315mil at 31 May 2015, so between cash injections and conversions of loans Randy Lerner has invested about 315 mil of his own money - exceptionally large oops on that one.
The loan note balance at 31 May 2015 was just over 10 mil on which the interest for the year was under half a mil.
No evidence to support a management fee in audited accounts as no related party transactions other than arms length sales to RL which were settled after the year end.
Glad to be of help.

Pipe down. Because you obviously can't read.

http://swissramble.blogspot.co.uk/2010/04/randy-lerners-money-talks-at-aston.html?m=1

Another reason for the enormous rise in operating expenses can be found in Note 29 on page 31 (the very last page) of the accounts, namely “management charges” of £7.7m that “were incurred from Reform Acquisitions LLC”, i.e. Randy Lerner. This is a strange one, as the accounts do not specify what these charges cover.

 

[The Esk]

Pipe down. Because you obviously can't read.

http://swissramble.blogspot.co.uk/2010/04/randy-lerners-money-talks-at-aston.html?m=1

Another reason for the enormous rise in operating expenses can be found in Note 29 on page 31 (the very last page) of the accounts, namely “management charges” of £7.7m that “were incurred from Reform Acquisitions LLC”, i.e. Randy Lerner. This is a strange one, as the accounts do not specify what these charges cover.

Mate, those fees were never drawn.

Here's a graphic of use of funds since Lerner bought Villa:

Lerner has spent more than £360 million in owning and funding the club over his time:

Lerner paid £66 million to acquire the club in 2006, and since he has put in over £300 million, initially a mix of loans and equity but almost all became equity (last accounts showed outstanding loans to him of only £10.4 million.)

Lerner's problem was that he never had competent management of the club - much like QPR he's been taken for a ride using his own money.

With complete certainty that will not happen to Everton under Moshiri, there's very little point in making the comparison to be honest.

 

[Boss_Blue]

Oh Damo.

When you have to put the words 'relevant to Everton' in the thread title so it doesn't get moved/closed you know it's going to be a tenuous link at best.

Fonts though.

 

[chazzle_dazzle]

Learner by his own admission is not a football man and has employed the wrong people to work at Villa. Wasn't one of them involved in the army or some rubbish.

Moshiri has been involved with a football club for a while and has much more interest in whats going on in the world of football.

I have no concerns.

 

[nsno-chris]

Oh damo, I think it's you who should pipe down

 

[Bungle]

Then there is always the option to go look at another thread mate.

Legitimate points being made here.

I think that's a fair point mate, doesn't always have to make these disparaging comments does he? Little bit out of order.

 

[Carlito]

We don't have any business looking down our noses at anyone.

The fact that Everton got by in relative comfort during three years of zero first team investment - none whatsoever - between 2009 and 2012 is nothing short of a miracle.

Villa were finished the moment they appointed Houllier.

 

[catcherintherye]

Mate, those fees were never drawn.

Here's a graphic of use of funds since Lerner bought Villa:

Lerner has spent more than £360 million in owning and funding the club over his time:

Lerner paid £66 million to acquire the club in 2006, and since he has put in over £300 million, initially a mix of loans and equity but almost all became equity (last accounts showed outstanding loans to him of only £10.4 million.)

Lerner's problem was that he never had competent management of the club - much like QPR he's been taken for a ride using his own money.

With complete certainty that will not happen to Everton under Moshiri, there's very little point in making the comparison to be honest.

Excellent post mate. I think the original article seems a bit flawed really especially given Lerner is leaving. I don't see many similarities at all and the landscape has changed so much over the last 10 years. People forget with Lerner that O'Neil spent a small fortune at the club while he was there. They never broke through to the top 4 and he lost interest.

I do see some key differences with Moshiri. The board member he has appointed seems very competent and doing a good job so far. Moshiri has been involved in football far more than Lerner was and for the short time I have seen him involved looks far more hands on than Lerner.

What you see with Lerner was a speculative punt. When it didn't work he withdrew his money and they never recovered.

 

[bizzaro]

Mate, those fees were never drawn.

Here's a graphic of use of funds since Lerner bought Villa:

Lerner has spent more than £360 million in owning and funding the club over his time:

Lerner paid £66 million to acquire the club in 2006, and since he has put in over £300 million, initially a mix of loans and equity but almost all became equity (last accounts showed outstanding loans to him of only £10.4 million.)

Lerner's problem was that he never had competent management of the club - much like QPR he's been taken for a ride using his own money.

With complete certainty that will not happen to Everton under Moshiri, there's very little point in making the comparison to be honest.

Will investigate the issue of the "drawing" of management charges that have appeared multiple times in Aston Villas accounts including 2010. 2012. Etc.

As for the money spent by Lerner. That is the dispute.

I do appreciate you discuss the issues Esk.

However. Clearly you would agree we would never accept a chairman saying they didn't have the effort or time to put into EFC as in the OP.


Incidentally that pie chart indicates not a single penny spent on 'infrastructure'