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StevO

Steward
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Posts posted by StevO

  1. 20 hours ago, Hafnia said:

    Except it won't be in one hit and will be over 2 accounting periods. 

    It doesn’t matter, a pay off can be spread and often is. But we tend to gardening leave rather than pay off anyway, most clubs do. 

  2. 2 hours ago, Newty82 said:

    Away from the debt thing...I've said my piece on that. Don't want to bore you all!!!

    My next concern is how any cash released from the asset (stadium) is used.

    I fear that it is all too easy to release cash against it and award shareholders, while the place and club rots.

    For example, Glazers at United.

    Or, just like what various water companies did in the 90s when privatised. Instead of getting loans against the assets to improve them...they paid handsome dividends to shareholders. Now the water companies, facilities and systems are fucked!

    There wont be cash to release against it, its being built with debt. If any cash is released it would have to settle the debt first, which would leave no cash left.

    Once the stadium is built and handed over to the club, they can then refinance the debts. So we could put all of the debts into one place and with the security of the stadium we can get a lower interest rate. Now we have debts secured against an unfinished stadium there is higher risk and higher interest.

  3. 1 hour ago, RuffRob said:

     

    I also think saleable players will be sold well before there would be any thought of a stadium sale. The Stadium is (or is about to be) the Everton crown jewel. Players are always replacable.

     

    Completely agree, Rob. 
    Also, the stadium is costing around £760m to build (based on Moshiri’s last comments about it), it will have a similar sized debt once completed as we’ve not funded from our own money. So when it’s complete there wouldn’t really be a financial benefit to selling it. It wouldn’t really have any significant profit, and instead of repayments we would be paying rent. 
    I don’t see a scenario where we sell it any time soon. 
    With the land being leased from Peel, we may not even be able to sell it. 

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