New Everton Stadium Discussion

Martin Alvito said:
You're being pedantic, and are undermining the argument in favor of the project. Adjust the cost of the stadium by 30 million pounds for the price of the land, and be sure to adjust the stadium value downward for depreciation at time of sale if you want to be precise about it. Adjust the value of the stadium downward if you think it's worth less than construction cost at completion.

Ticket prices (and concession sales) are going to be based on fans' willingness to pay. Empty seats are worth $0. If we had a worldwide fanbase (especially with a base in London), I might be willing to make the assumption that we can broadly charge more for seats/concessions at a premium property and still fill the place. As it stands, that assumption seems a little heroic. As far as multi-use, keep in mind that you're competing directly with that other lot to attract those events, which tends to depress quantity and prices.

On financial alchemy with respect to naming rights, we already know that you do not need to build a stadium to engage in that. To justify the project as cashflow-positive in the near-term for the club's finances, you would need to argue that the prospective increase on naming rights for a new stadium, plus any increase in revenue, is going to outpace interest costs plus debt service payments. We both know that's bollocks. It'll be years before we see stadium-related revenue, but we start payments right away.

It's not impossible that the stadium could bankrupt the club; all that has to happen is that Moshiri or his successors decide to stop throwing good money after bad. As I said, I don't think that's a likely outcome. These projects usually overrun estimates (the Emirates being one of the only exceptions I am aware of), but it would take Cowboys or Rams-level overruns to make withdrawal defensible and this project isn't that ambitious.

I think that you are better off understanding Dave's "bankrupt the club" as the statement of someone less familiar with the business side and the precise meaning of terms than we are, and read it as "screw over our finances for the next decade." What I'm saying is that this is not mutually exclusive with Moshiri making money on the deal.

Put into a nutshell: if you're correct and we will make money on the stadium right away which will be plowed into developing the squad, why hasn't that been the experience of Arsenal and Tottenham? My argument is that these deals happen because they make owners better off, that they tend to come at the expense of fans' interests, and that the empirical evidence tends to support those assertions. I'm not seeing anything here that convinces me otherwise.
Click to expand...
You honestly think an 100 + yr old dump with limited access will compete with a modern state of the art facility for business
 
Martin Alvito said:
You're being pedantic, and are undermining the argument in favor of the project. Adjust the cost of the stadium by 30 million pounds for the price of the land, and be sure to adjust the stadium value downward for depreciation at time of sale if you want to be precise about it. Adjust the value of the stadium downward if you think it's worth less than construction cost at completion.

Ticket prices (and concession sales) are going to be based on fans' willingness to pay. Empty seats are worth $0. If we had a worldwide fanbase (especially with a base in London), I might be willing to make the assumption that we can broadly charge more for seats/concessions at a premium property and still fill the place. As it stands, that assumption seems a little heroic. As far as multi-use, keep in mind that you're competing directly with that other lot to attract those events, which tends to depress quantity and prices.

On financial alchemy with respect to naming rights, we already know that you do not need to build a stadium to engage in that. To justify the project as cashflow-positive in the near-term for the club's finances, you would need to argue that the prospective increase on naming rights for a new stadium, plus any increase in revenue, is going to outpace interest costs plus debt service payments. We both know that's bollocks. It'll be years before we see stadium-related revenue, but we start payments right away.

It's not impossible that the stadium could bankrupt the club; all that has to happen is that Moshiri or his successors decide to stop throwing good money after bad. As I said, I don't think that's a likely outcome. These projects usually overrun estimates (the Emirates being one of the only exceptions I am aware of), but it would take Cowboys or Rams-level overruns to make withdrawal defensible and this project isn't that ambitious.

I think that you are better off understanding Dave's "bankrupt the club" as the statement of someone less familiar with the business side and the precise meaning of terms than we are, and read it as "screw over our finances for the next decade." What I'm saying is that this is not mutually exclusive with Moshiri making money on the deal.

Put into a nutshell: if you're correct and we will make money on the stadium right away which will be plowed into developing the squad, why hasn't that been the experience of Arsenal and Tottenham? My argument is that these deals happen because they make owners better off, that they tend to come at the expense of fans' interests, and that the empirical evidence tends to support those assertions. I'm not seeing anything here that convinces me otherwise.
Click to expand...
Because their business is run purely as a business
Usmanov has different priorities
 

Brisan123 said:
Its them dots again
Looking back the first dot was put in place when Usmanove GAVE Moshiri 15% of Arsenal for free
No one seen it then and still more dots to go
Click to expand...

Granted, I didnt get that one. Not at first anyrate. It wasnt till the whole BMD thing kicked off that I started looking at the bigger picture, mainly out of boredom if I am honest.

Made some sense back then, still does.
 
roydo said:
Granted, I didnt get that one. Not at first anyrate. It wasnt till the whole BMD thing kicked off that I started looking at the bigger picture, mainly out of boredom if I am honest.

Made some sense back then, still does.
Click to expand...
Exactly
Usmanov covering his bases
Send a scout up north if Arsenal does not work out,
Send a scout up north and make a few quid on the docks
 

mickefc said:
Do people read the massive posts on here with about 1000 words
Click to expand...

Depends who it is. Some people are plainly knowledgeable, while others just have an incredible knack of using lots of words to demonstrate their ignorance.

mickefc said:
... or skip them to read the quick, get to the point ones like me?
Click to expand...

Not really, but I do appreciate you being brief while saying next to nothing.

;)
 

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