New Everton Stadium Discussion

[Hickson9]

There's been almost half a billion quid LCC have had slashed from their budgets since 2010. Anderson proposes loaning £270M to a football club on the strength of raising *upwards* of £10M a year back in payments.

Does that sound like a great idea to you?

It sounds nuts to me.

I've read upwards of £7m a year made for LCC on top of the debt being repaid.

So an additional £7m a year on services for the people of Liverpool. If LCC are going to try and make money from investments, this seems as sensible as that policy can be. It also has lots of other direct benefits to the people of Liverpool beyond the money LCC will make.

 

[BirkenheadBlue]

There's been almost half a billion quid LCC have had slashed from their budgets since 2010. Anderson proposes loaning £270M to a football club on the strength of raising *upwards* of £10M a year back in payments.

Does that sound like a great idea to you?

It sounds nuts to me.

Yeah it sounds like an excellent way of generating ~£7m a year for the LCC coffers actually (and kickstarting LW/creating jobs etc etc).

 

[chewee]

Councils are being encouraged by the current govt to be creative with how they generate cash. It’s the tory way.

Yes it is a big added risk on the balance books but in turn it spearheads private investment and regeneration of the era. In the long run it pays for itself and lessens the need for state cash to kick start development in north Liverpool. The risk to Everton is far greater than to LCC.

 

[ALANSTUBBS]

There's been almost half a billion quid LCC have had slashed from their budgets since 2010. Anderson proposes loaning £270M to a football club on the strength of raising *upwards* of £10M a year back in payments.

Does that sound like a great idea to you?

It sounds nuts to me.

Show me somewhere else where I can get almost an 100% intrest over 40 years with a super low risk and secured against assets and I will bite your hand off.

It's a no brainer for all involved.

 

[Achilles Heel]

The partnership achieves a number of things:

• EFC access interest rates for capital via LCC that they could not find elsewhere
• LCC uses capital that they can access to then make money for reinvestment in essential services
• Together the partnership spikes the acceleration of the development of North Liverpool, to the benefit of everybody in the city.

Looks common sense to me in terms of a partnership of mutual benefit and if the figures were much smaller, don't think there would be so many questions being asked (apart from the bitter, jealous Kopites that are frightened of progress for Everton)

 

[Yarrgh]

We will get far more than £30m for stadium naming rights mate. Look at what we get just for Finch Farm.

You're more than likely right. I'm just trying to figure the angles out in my head. I've been an Evertonian long enough to know it can all go pear shaped in an instance, but the opportunities involved with the redevelopment of the whole area, make it seem almost inevitable that we will be going and it's more a question of the competence of how we manage to do it and when and how well it's done.

 

[RobSpurs]

Everton are taking out the loan but the council is the guarantors of the loan and take ownership if Everton can’t pay the loan repayments.

The council acting as the guarantee’s mean Everton can borrow at a compititive rate as most financial institutions do not borrow to football clubs amount we are talking about.

Are you sure that's still the case (I know it was when the SPV etc were first announced)? The most recent articles seems to say LCC will be taking out a huge loan, effectively paying for 2/3rds of the stadium, with EFC paying this back with interest and fees over time. In the original scenario the council wouldn't be in debt, in the new one they are (even if they fully expect the repayments to be more than covered by EFC).

 

[OneTrueLegend]

My understanding of the councils involvment is that they are basically a guarantor for the loan, the debt is with Everton, not LCC. Then we pay them a sum each year as the money is paid back.

It’s quite low risk for the council, the risk comes in if Everton default on the loan, because then it becomes the councils to pay back. But for that to happen we would have to go into liquidation

 

[EFC78]

Are you sure that's still the case (I know it was when the SPV etc were first announced)? The most recent articles seems to say LCC will be taking out a huge loan, effectively paying for 2/3rds of the stadium, with EFC paying this back with interest and fees over time. In the original scenario the council wouldn't be in debt, in the new one they are (even if they fully expect the repayments to be more than covered by EFC).

It seems to have changed (I was unaware of that myself the other night when the AGM was on).

LCC are getting the money at a special rate that Everton could not get access to otherwise. This money the Council are getting is not allowed to be used for services etc, it can only be used on schemes such as this one, and that is why all these Bitter Kopites are massively misunderstanding the situation.

LCC will then provide this money to Everton through a loan and will earn £7m a year profit in doing so when Everton pay the money back each year, which LCC will then be able to use for services. I cannot possibly understand how any Evertonian, Liverpool supporter or anyone in the Country can complain about that.

It seems to me that the main objections are based on complete catastrophe for Everton Football Club and it strikes me as the kind of mentality that is similar to not getting on a plane to go abroad in case it crashes. Worst case scenarios. Regarding relegation, this is a club that has gone 63 consecutive years without being relegated and is only bettered in that regard by one club in the entire Country - Arsenal. It would be unprecedented in any person under 60's lifetime for Everton to suffer relegation and yet EFC and the City are supposed to stand still and not go ahead with this project in case something terrible happens.

This is a great deal for both Everton FC and the City of Liverpool.

 

[The_La]

Couple of little titbits.
Cabinet were completely unaware of the change of plan with the funding model - Joe blindsided them with that. So that's not going to help matters.
However, if the necessary assurances are made (eg the Council having first dibs on parachute payments, ST sales etc if we went down) then it will still be seen as a great deal for the council and should get approved. The original deal passed through without a problem and was signed off by the district auditor.
There is precedent for this kind of funding to be given by the council by the way. Apparently the Aloft Hotel - obviously on a much smaller scale - was funded this way. LCC fronting up the money in return for a healthy piece of the action.

There is a race against time though. Joe needs to get it all over the line before he's out of office. He's got 2 years. What happens to him and us then? Perhaps he'll join our board!!

 

[Saint Domingo]

Saves Everton money, makes the council money, creates jobs in Liverpool, delivers stadium. Yet people can’t look past ‘the council is paying for our stadium’. Grow up.

 

[The_La]

My understanding of the councils involvment is that they are basically a guarantor for the loan, the debt is with Everton, not LCC. Then we pay them a sum each year as the money is paid back.

It’s quite low risk for the council, the risk comes in if Everton default on the loan, because then it becomes the councils to pay back. But for that to happen we would have to go into liquidation

That was the original model announced a while ago. The situation has definitely changed. The Council will be taking out the loan now themselves and passing the money to Everton for a healthy fee. See here:
http://www.liverpoolecho.co.uk/news/liverpool-news/liverpool-council-loan-everton-millions-14136195

 

[liamefc91]

Not being funny but isn’t this just the jist of it..?

The council get better rates on loans than Everton (private company). So they are going to get a loan for 2/3rd of the total of the stadium with arguments sake 5% intrsest rate (completely made up intrest rate).

They then offer the loan to Everton but with say 7% intrest so the council get all the money back for the loan they’ve taken out + make an extra % for themselves. This way is still cheaper to Everton than getting a loan themselves from another source.

Isnt that what is basically happening or have I got the wrong end of the stick?

 

[eddy]

Not being funny but isn’t this just the jist of it..?

The council get better rates on loans than Everton (private company). So they are going to get a loan for 2/3rd of the total of the stadium with arguments sake 5% intrsest rate (completely made up intrest rate).

They then offer the loan to Everton but with say 7% intrest so the council get all the money back for the loan they’ve taken out + make an extra % for themselves. This way is still cheaper to Everton than getting a loan themselves from another source.

Isnt that what is basically happening or have I got the wrong end of the stick?

The thing is the stadium will only be open for business at year five. I am thinking then there is no return on investment
for five years seems a strange way to fund this.

 

[Hickson9]

Not being funny but isn’t this just the jist of it..?

The council get better rates on loans than Everton (private company). So they are going to get a loan for 2/3rd of the total of the stadium with arguments sake 5% intrsest rate (completely made up intrest rate).

They then offer the loan to Everton but with say 7% intrest so the council get all the money back for the loan they’ve taken out + make an extra % for themselves. This way is still cheaper to Everton than getting a loan themselves from another source.

Isnt that what is basically happening or have I got the wrong end of the stick?

You'v got it mate.