Vibrac loan/mortgage

[bourneblue]

It's not a long term loan. The borrowing is secured against future broadcast revenue. My understanding is we have 2 such loans going up against TV revenue for two years hence - they're happy with the risk as worst case scenario - relegation - the parachute payment for year 1 in Championship would cover it. It's wrong to describe it as a mortgage - we have other loan facilities (against Goodison Park, season ticket securitisation etc) that are more like mortgages. This really is more like a pay day loan.

Still, remember to clap Bill when his mug comes on the screen against West Brom. After all we were +20m on the balance sheet when he took over (borrowed the money to take over) and he's only looking for a 700% return on his investment (of nothing).

Happy days!

+ 20 million on the balance sheet when Kenwright took over ?
Any proof of this ? As I have never known Everton to have a healthy balance sheet,in fact I've only ever seen a minus.
We were most certainly skint through the 90's and into 2000's.
No disrespect mate, but I simply cannot recall us having this sort of money.

 

[Moomin]

+ 20 million on the balance sheet when Kenwright took over ?
Any proof of this ? As I have never known Everton to have a healthy balance sheet,in fact I've only ever seen a minus.
We were most certainly skint through the 90's and into 2000's.
No disrespect mate, but I simply cannot recall us having this sort of money.

We had + 20 million of assets in 1999, I think its minus something now. Google it, you will find the data.

 

[SingBlue]

As Moomin points out, I was referring to the assets. Sorry, should've made that more clear.

 

[magicjuan]

+ 20 million on the balance sheet when Kenwright took over ?
Any proof of this ? As I have never known Everton to have a healthy balance sheet,in fact I've only ever seen a minus.
We were most certainly skint through the 90's and into 2000's.
No disrespect mate, but I simply cannot recall us having this sort of money.

Thats just a tad discourteous, you know what he means.
Vibrac is an investment/hedge fund, those putting money in, do so with an expected profit to be realised. It is offshore too and only the desperate or unwilling to risk their own money go to them for credit.

 

[SingBlue]

It is offshore too and only the desperate or unwilling to risk their own money go to them for credit.

That's the point though, it's not "their" money, it's Everton Football Club's future revenue. It's bone-headed financial planning like this that makes you realise Walter Smith was probably right when he said during his time (granted, part of that time was under the previous owner) the club was twice close to administration. And, if Trevor Birch is to be believed, we've been close once since.

As soon as you start borrowing against your own future income, you are in dangerous territory. The fact is that Everton is far too dependent on Broadcast Revenue viz a viz Commercial and Matchday Revenue. That lot across the park in the 12 months before this new TV deal earned more in Commercial alone than our entire turnover.

Bill never had the money to buy the club - that's not his fault. But anyone who thinks he's not in it for the personal profit is.... different in their opinions from me.

 

[Tubey]

Isn't this the bridging loan that Robert Earl allegedly makes mega money on?

 

[Jags..class]

Isn't this the bridging loan that Robert Earl allegedly makes mega money on?

Can you explain in more detail please?

 

[davek]

Isn't this the bridging loan that Robert Earl allegedly makes mega money on?

Allegedy, the vibrac bridging loan is the financial mechanism that allows dividends to be paid to Earl/Green from his/their 'investment' on shares (and loans), thus circumventing the claim that directors are not paid a wage.

Allegedly.

 

[Tubey]

Can you explain in more detail please?

I can't remember the details exactly, but I'm sure this replaced a mortgage and was borrowed against future Premier League income - and the rumour at the time was that Robert Earl was a stakeholder in this Vibrac company, but nobody could confirm or deny it.

I might be way off base but I distinctly remember something dodgy about it and linking the terms "Vibrac", "Robert Earl" and "greedy bar steward" in my head

Allegedy, the vibrac bridging loan is the financial mechanism that allows dividends to be paid to Earl/Green from his/their 'investment' on shares (and loans), thus circumventing the claim that directors are not paid a wage.

Allegedly.

Yep this. ^

 

[Foot Long Hot Dog]

Isn't this the bridging loan that Robert Earl allegedly makes mega money on?

So is Earl creaming money off Southampton, Fulham & West Ham as well then? Given that Vibrac have similar arrangements with those clubs???

The lids who decided that Earl was behind Vibrac did so with no susbtance to back up their conspiracy theory

 

[TheBlueGibbon]

So is Earl creaming money off Southampton, Fulham & West Ham as well then? Given that Vibrac have similar arrangements with those clubs???

The lids who decided that Earl was behind Vibrac did so with no susbtance to back up their conspiracy theory

Not true, Vibrac is based at the same address as the company through which BCR Sports, the company which Earl controls his shares. Of course that doesn't necessarily mean he is behind Vibrac, but it could be seen as circumstantial evidence.
DaveK had a link to the copy of the chargesheet submitted to Companies House which gives the address, here.

 

[D410]

Not true, Vibrac is based at the same address as the company through which BCR Sports, the company which Earl controls his shares. Of course that doesn't necessarily mean he is behind Vibrac, but it could be seen as circumstantial evidence.
DaveK had a link to the copy of the chargesheet submitted to Companies House which gives the address, here.

Thanks for that, In KEIOC We Trust.

 

[mikewex]

Not true, Vibrac is based at the same address as the company through which BCR Sports, the company which Earl controls his shares. Of course that doesn't necessarily mean he is behind Vibrac, but it could be seen as circumstantial evidence.
DaveK had a link to the copy of the chargesheet submitted to Companies House which gives the address, here.

Yes, them and probably 10k other companies. Its the address of http://www.icazalaw.com/, a solicitors that specializes in setting up BVI companies and acts as a registered address and trustees. Google the address, it appears a lot on a large number of companies. All the business about "avoiding dividends" appears to have been pretty much made up on forums.

 

[Foot Long Hot Dog]

Not true, Vibrac is based at the same address as the company through which BCR Sports, the company which Earl controls his shares. Of course that doesn't necessarily mean he is behind Vibrac, but it could be seen as circumstantial evidence.
DaveK had a link to the copy of the chargesheet submitted to Companies House which gives the address, here.

Tax haven addresses often have multiple companies registered out of them

The address means jack **** in reality, what's more compelling is the fact that this company specialise in this form of football club finance & the spun tale that Earl was having it away with our cash via this supposed vehicle looks a bit ****ish now that its come out that they have similar arrangements with other PL clubs

 

[Mogwai]

Bit off topic.... But can Kenwright and co legally pocket all the new TV money coming in?... And in the extreme, are they legally in their right to be able to liquidate the football club and profit from it?... Or do they have some legal duty of care etc...