ToffeeWeb - Season 2007-08

The Mail Bag

Have we missed the boat?

This will probably turn into a ground move post, but I posted a message here a few weeks ago about the economy going tits up and the possibility of a recession looming. I work in the financial services and actually heard weeks ago about a high street bank / building society going to the wall. Now if we look a the bigger picture would this have an effect upon any future investment into Everton FC and also the proposed deal of the century? I know through my job that once there is any sign of a recession, big multi-nationals and companies usually reconsider any future investments. Would Tesco be one of these? I can hear Bill Kenwright shitting his pants from here...
Anthony Murphy, Caymans Posted 17/09/2007 at 17:27:45

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Tony Miller
1 Posted 17/09/2007 at 19:10:27

If you mean Northern Rock as the bank/building society going to the wall. You are well of base there this is extremely unlikely to happen Even today the government have said al savings etc are guaranteed.

This is typical of our worry culture. Press rumor of a shortage of flour all the bread in sops disappears due to bulk buying etc. Our media love this and just stoke the fires.

There may be reasons for failure but this isn?t one of them.

Joe McParland
2 Posted 17/09/2007 at 19:34:36

The only team that will be worried are Newcastle as they are sponsored by Northern Rock

Peter Singer
3 Posted 17/09/2007 at 20:14:54

When the football bubble bursts, the clubs with massive debts will be in the deepest trouble. If it happens in the near future, that means the so-called big four.

Indeed that is the most worrying aspect of all the numbers Wyness tells us: he assumes that the football boom will be continuing and we don’t seem to be braced against a global PL financial collapse at all.

Because it’s not a question of "if", it’s only a question of "when".

Gavin Ramejkis
4 Posted 17/09/2007 at 20:36:17

The interesting point you have made will come home to roost when the larger investment banks publish their annual profit and loss figures, many analysts expect several to have made zero profits as a result of the sub prime mortgage market collapse in USA, one of the major banks this could hit is none other than Bear Stearns who the club are heavily into debt with already.

Mick simpson
5 Posted 17/09/2007 at 21:00:28

I think a global stock market crash will have massive implications for most businesses and then you have a domino effect, especially in football. Maybe its just aswell we are not being run by some Americian or far east tycoons. I honestly believe Tesco would not invest in the Kirby project if things go belly up, market forces will dictate that so who knows we might have to stay at Goodison

Mark Stone
6 Posted 17/09/2007 at 21:19:07

I’m more worried about the personal effect this will have on me than the effect it will have on Everton!

Roy Coyne
7 Posted 17/09/2007 at 21:21:25

So there is a chance we wont go to Kirkby and our friends across thepark deep in shit hope so

Geoff Barnes
8 Posted 17/09/2007 at 21:29:26

Yes the economy’s going down the pan. I live in New Zealand where 6 finance companies have gone bust, the American housing finance sector is in a mess and Northern Rock is the first signs of what’s to come in the UK. There’s just too much debt. But if this brings an end to the Premier League bubble then I reckon Everton will be in a far better position to cope than most, without (at the moment) the debt associated with an expensive stadium development.

Marc Roberts
9 Posted 17/09/2007 at 22:56:12

Footy clubs have always lived on the edge of a cliff of debt, its nothing new. The club will survive. But if there is a world recession then attendences will drop as people realise what a waste of 40 quid a ticket is when matches can be watched for nothing in the pub. This might lead to lower prices and players wages and that can only be a good thing! One thing it will defo put the brakes on is Kirkby - and that magical 10 mil a year will come crashing down quicker than the main stand!

Glen Strachan
10 Posted 18/09/2007 at 00:11:46

Stop being silly folks. Does anybody out there seriously think Everton will ever make its home in Kirby?

Things will change and this development has got about as much chance of taking place as Bush being welcomed as a hero by the Iraqi people.

It was only ever a selling ploy for BK... relax folks and stop debating all this shite !

I repeat ...it will never ever come to pass !

Remember you read it here today , Derby is ten times more likely to win this year?s premier than we are to ever play a home match in Kirby.

Just by the way.........I know they beat Newcastle today but.........!

Roy Coyne
11 Posted 18/09/2007 at 01:30:22

Glen I wish I had your confidence mate

Mike Hunt
12 Posted 18/09/2007 at 03:52:23

Tesco is primarily a massive supermarket chain, hence it is a cash rich ’defensive stock’, quite well protected from global finance concerns and stock market corrections.
Northern Rock’s crisis of confidence etc are not gonna impact on Tesco’s business model.
COYB!

Philip McAvoy
13 Posted 18/09/2007 at 07:28:07

As I understand it, most of Everton's debt is n the form of a mortgage type arrangement which cannot be called in no matter what. However, it?s more expensive to borrow money on the markets so takeovers will become less likely at the moment. The club most at risk will be Manchester Utd as the Glazers borrowed heavily on short-term loans which will beome much more expensive to service. To make it worse, that debt's on the club rather than the Glazers themseves...

Ryan Crest
14 Posted 18/09/2007 at 09:24:35

Arsenal are struggling to refinance their stadium. They took out expensive short-term finance to pay for its construction, with the hope of issuing a long-term asset-backed security once the stadium was complete. But given the current money market conditions no-one is interested in buying the debt on anything like favourable terms. And they?re left haemorrhaging huge amounts of money in interest payments.

That?s why they?re so vulnerable to this cash-rich Russian who?s stalking them.

I don?t think this applies to Tesco, however, as they have billions in hard cash swilling around. In fact the current situation will benefit them as they?ll be able to drive an even harder bargain when financing any construction deals as they?ll be the only game in town.

They?re ideal partners for Everton given the circumstances.

Anyway - this will probably all have all blown over by the time it comes to start building works in Kirkby. And if any Merseyside club should be worried by this it?s that lot across the park. They were planning on financing their stadium with a mountain of debt ? which has suddenly become extremely expensive.

Allan Hobbs
15 Posted 18/09/2007 at 12:52:46

Is that the same Arsenal that were quoted yesterday as the 2nd richest club in the world behind Real Madrid? The same Arsenal who have more than doubled their revenue since moving to a new ground? Funny that.

Dave Roberts
16 Posted 18/09/2007 at 18:01:44

Allan Hobbs

There are many ways of measuring wealth mate. I could be said to be very wealthy as I have assets of about £250,000! So why do I struggle to pay for my season ticket every year!

Was it only 3 years ago that Everton got into the top 20 rich club list? Only because we sold Wayne Rooney! I could be dead rich if I liquidized my assets, but I’d have nowhere to live!