MSP Sports Capital

[Abertonian]

So the idea with MSP mate was they would invest 150 mill in the club for a 25% stake in the club, with additional warrants - options to buy an additional stake in the club likely pending further milestones - kind of what Moshiri did incrementally.

Moshiri and Everton were doing this as the loan market weren’t prepared to give the club a loan of 300+ to finish the ground. The idea was that MSP would give £150 mill, prob 100 mill for the ground and 50 mill in capital to the club. This has now fallen down.

So it seems instead of taking a stake in the club MSP will lend Everton the £100 mill for the ground, but be a debtor and will charge a high level of interest for that loan. I assume Moshiris hope now is he can raise the remaining funds 200 mill odd JP Morgan and Mitsubishi are trying to that.

Seperately Moshiri is now trying to sell his majority stake to 777 and get out of dodge.

So what does this mean for Everton, massive external debt, £200 mill to right and media, £100 mill to MSP, £200 mill + in a stadium loan. It’s important to say interest rates on that will be 10%+ per year, it’s a huge cost and questionable if we can manage it - think about our finances now, we make huge losses, we can’t support that, when we move it’s likely any benefit of moving will be eaten up in servicing that debt for many years.

Essentiall Moshiri wants out before any of the above comes to being paid or repayed - thus he’s trying to sell after dumping us in best with high interest costs, that will take many years to try and manage.

It's devastating for the club. He didn't want us to be a museum but there is a chance that's all we'll become.

How sad it is to think that the stadium was viewed as a glass ceiling that was keeping us from breaking into the revenues of the sky 6. Now we have half a stadium built and the only top 6 we are likely to threaten is in the championship.

Can be sure that Moshiri and Bill will be well clear of the splatter zone when the proverbial hits the fan though.

 

[catcherintherye]

MSP was to buy the club over three calendar years by making three separate cash investments in the club. Those funds would be used to finish the stadium and probably let Moshiri walk away with some cash in his pocket.

From the investor side, it appears that there is a lender in the UK that has to sign off on Moshiri handing over the keys. And they refuse to do so.

I wonder if they both wanted some charge on the stadium.

 

[BeardedScotsman]

Agreed. Realistically it needs Moshiri to finally see sense, realise his shareholding is damn near worthless and accept as little as £1 for his shares plus guaranteed repayment of his remaining unconverted loan to get a deal done with any buyer. Any new owner inherits £300m in external debt to potentially repay and an estimated £200m more to finish the stadium. They are not going to give Moshiri more than they have to up front.

The issue with Moshiri walking away at 0 is you don’t know what is propping up all the debt. I am assuming the media rights and stadium.

It’s possible he CANT walk away for £1 because it would unwind all types of debt covenants.

 

[catcherintherye]

777 are terrible. If this thing goes belly up, it’s a prime target. When negotiations were occurring last early Spring, 777 wanted a relegation.

777 owned Sevilla just wont the Europa league. They are relatively underrated.

 

[Wat Tyler]

Yep. I think we've woken up in 2015 again. If truth be told I don't think it ever went away, reckon Bill had it 'hidden' until it was needed. Like now.
He's an actual despot guerilla fighting financially to reclaim his plaything.

Kenochet

 

[Cake]

Our best hope to get out of this mess is for it to be found Everton Football Club is an asset of Usmanov (no matter how big/small) and the UK Government force a sale of the club and all assets. Moshiri isn’t his accountant for nothing, he’ll be well hidden but he’s got to show up somewhere and most likely will at some point. This way, Moshiri and Kenwright go too.

 

[Bluelenny1984]

We sort of are attractive to an oil state, in a roundabout way. We have had ME interest. They love a turnaround story, with a new stadium.

But look, while you have FM/BK working in their own interests, we wont attract buyers.

Yes but as you've said on another post in order for that oil state to buy us it requires Moshiri to effectively walk away and not recover any of the money he has put in to date.

The new buyer would be taking on hundreds of millions of expensive debt and a stadium short of finance.

Can anyone see Moshire walking away for £1??

 

[catcherintherye]

Yes but as you've said on another post in order for that oil state to buy us it requires Moshiri to effectively walk away and not recover any of the money he has put in to date.

The new buyer would be taking on hundreds of millions of expensive debt and a stadium short of finance.

Can anyone see Moshire walking away for £1??

Yes all true. And BK would need to stop messing things up.

And that's true of any owner.

 

[jinkyali]

It will be us as fans who feel this.
Be it the death of a club or sky high ticket prices.

 

[toffee66]

The issue with Moshiri walking away at 0 is you don’t know what is propping up all the debt. I am assuming the media rights and stadium.

It’s possible he CANT walk away for £1 because it would unwind all types of debt covenants.

I think that is probable which is why I flagged the new owner would potentially have to repay that debt, either directly post takeover, or with all sorts of guarantees doing it first but essentially back to back with the share purchase. It would keep accountants and lawyers happy as the professional fees they would rack up finding a near foolproof route through the maze to enable a deal would be spectacular.

 

[The binman chronicles]

So the idea with MSP mate was they would invest 150 mill in the club for a 25% stake in the club, with additional warrants - options to buy an additional stake in the club likely pending further milestones - kind of what Moshiri did incrementally.

Moshiri and Everton were doing this as the loan market weren’t prepared to give the club a loan of 300+ to finish the ground. The idea was that MSP would give £150 mill, prob 100 mill for the ground and 50 mill in capital to the club. This has now fallen down.

So it seems instead of taking a stake in the club MSP will lend Everton the £100 mill for the ground, but be a debtor and will charge a high level of interest for that loan. I assume Moshiris hope now is he can raise the remaining funds 200 + mill odd, JP Morgan and Mitsubishi are trying to do that.

Seperately Moshiri is now trying to sell his majority stake to 777 and get out of dodge.

So what does this mean for Everton, massive external debt, £200 mill to right and media, £100 mill to MSP, £200 mill + in a stadium loan. It’s important to say interest rates on that will be 10%+ per year, it’s a huge cost and questionable if we can manage it - think about our finances now, we make huge losses, we can’t support that, when we move it’s likely any benefit of moving will be eaten up in servicing that debt for many years.

Essentially Moshiri wants out before any of the above comes due to be paid or repayed - thus he’s trying to sell after dumping us in 100s of millions of debt with high interest costs, that will take many years to try and manage.

By taking on additional debt it would devalue the club to almost nothing so I don't think he's dumping us in millions of debt trying to pull a fast one.

With the additional funding required to finish the stadium, the two loans of around 200 million it's already 450 million before we get to how much Moshiri wants. Which at the moment we are worth around that mark.

At a very high interest rate.

I would be curious if it is unsecured. The stadium is an asset. I would guess, based on the company name, that Media Rights Funding is lending the club money versus future television dollars.

Doubt the stadium can be classed as an asset, we rent the land, it still requires massive Investment to finish it off.

 

[Bluelenny1984]

Yes all true. And BK would need to stop messing things up.

And that's true of any owner.

Never thought Moshiri would turn out this bad for our club, and Bill is a supposed true blue with Everon in his heart what a joke.

 

[Neiler]

It's devastating for the club. He didn't want us to be a museum but there is a chance that's all we'll become.

How sad it is to think that the stadium was viewed as a glass ceiling that was keeping us from breaking into the revenues of the sky 6. Now we have half a stadium built and the only top 6 we are likely to threaten is in the championship.

Can be sure that Moshiri and Bill will be well clear of the splatter zone when the proverbial hits the fan though.

He’s a carpet bagger and a spoofer.

10% of 500 million (10% is conservative) is £50 mill a year, our turnover at the moment is about £170 mill, the projection for the new stadium is our revenue will increase by £40 mill, to about £210. So you can see just in servicing the debt it’s about a quarter of what we make.

The club is just about worthless.

You can see why he wants to cash out before the cash calls come in.

 

[Billy Dean]

777 owned Sevilla just wont the Europa league. They are relatively underrated.

They have barely any say at Sevilla. They own I think 15% and have allied themselves to another faction that are currently out of favour in their corridors of power

 

[malfosse]

Six months to do a deal and they don't even check out the terms of their other lending.

How incompetent can you get.

I assume because you're posting this on an Everton forum that is a rhetorical question?