Everton

[dom9]

Wot?

[Exiled_red]

I thought the council were loaning them £300m for 25 years and Everton were paying interest which the council would invest in public services. The way I read it this was spun as a positive 'good for the city' etc. To be honest i wouldn't have a problem with it if the council had a excess and the funds were sitting in a bank, but at a time when the council is skint and there is under investment in public services it really is a scandal.

[Le Chef]

I thought the council were loaning them £300m for 25 years and Everton were paying interest which the council would invest in public services. The way I read it this was spun as a positive 'good for the city' etc. To be honest i wouldn't have a problem with it if the council had a excess and the funds were sitting in a bank, but at a time when the council is skint and there is under investment in public services it really is a scandal.

Sounds like the council are getting the money at commercial rates and then charging Everton a higher rate, which would be stupid considering they have a billionaire benefactor that would be able to obtain the said commercial rates against is own holdings.....

[Le Chef]

I think teh wider area gets regeneration, which brings in investment etc, etc, which LCC will point too in supporting and getting involved. A taxpayer funded stadium in Liverpool though is very risky (elsewhere barring London also) . What happens when the TV bubble bursts or The Eve are relegated - who picks up the tab in the case of non payment......?
Doesn't sound like Uncle Bill or Moshi the Billi man

[Kenneth]

The council can borrow at lower rates than any business could.

[Le Chef]

The council can borrow at lower rates than any business could.

Depends on the business - My fit are borrowing at 0.2 above Fed/Libor at present which indicates money is practically free. For Eurobor we actually borrow at .05 above zero as the obv ECb are charging negative rates.

Still a significant risk given the club can only project max 3-8 years ahead....

[Fivex]

[Tatterdemalion]

As I understand it it has nothing to do with money the council has in the kitty or money it could spend anywhere else as such. It appears the council is borrowing the money and on-lending to Everton at a higher rate, thus making a profit - in banking terms they are intermediating. There's not much wrong with that as such save I don't know how geared the council is (i.e. how much money they already owe) and there may have been other on-lending opportunities the council could have made which would have been more socially acceptable. No doubt in my mind at all that is fuelled by the mayor's own support however, it is favouritism. Not entirely sure if there is great scandal in it.

[Roboklopp]

So they’re taking credit risk. That risk would need profiling & I am sure they can find safer investment vehicles.

[Le Chef]

As I understand it it has nothing to do with money the council has in the kitty or money it could spend anywhere else as such. It appears the council is borrowing the money and on-lending to Everton at a higher rate, thus making a profit - in banking terms they are intermediating. There's not much wrong with that as such save I don't know how geared the council is (i.e. how much money they already owe) and there may have been other on-lending opportunities the council could have made which would have been more socially acceptable. No doubt in my mind at all that is fuelled by the mayor's own support however, it is favouritism. Not entirely sure if there is great scandal in it.

Depends on the risk - Anything 10 years plus on football related is risky - Given all teams are set up financial in TV cycles gives it away some what. the risk to the City of Liverpool is "if the TV bubble bursts" before the loans are repaid, who is on the hook - I get the feeling the council and subsequent council tax payer will be.

[Le Chef]

FWIW I thin the loan on the Liverpool main stand is around 8-10 years - I stand to be corrected tho

[Tatterdemalion]

Depends on the risk - Anything 10 years plus on football related is risky - Given all teams are set up financial in TV cycles gives it away some what. the risk to the City of Liverpool is "if the TV bubble bursts" before the loans are repaid, who is on the hook - I get the feeling the council and subsequent council tax payer will be.

Yeh - that's fair. If Everton can't repay it will be council left holding a half built or otherwise empty stadium!

[Tatterdemalion]

FWIW I thin the loan on the Liverpool main stand is around 8-10 years - I stand to be corrected tho

tbh I didn't know they had lent to us as well. I thought FSG had lent the entire amount.

[dom9]

FWIW I thin the loan on the Liverpool main stand is around 8-10 years - I stand to be corrected tho

5 I read somewhere. No idea where.

tbh I didn't know they had lent to us as well. I thought FSG had lent the entire amount.

Who, the council? Pretty sure they have not.

[Rich]

usmanov and moshiri are thick as thieves. remember the programme that was investigating usmanov 'giving' the gift of the money to his mate so he could then buy into everton. means usmanov has controlling interests in two clubs.
illegal money laundering and illegal re FA rules.
all dodgy as ****, no idea how its not investigated more thoroughly.

Proper shady.