Report claims Kenwright's shareholding to be halved

02/03/2016  61 Comments  [Jump to last]
Bill Kenwright will sell 50% of his shares in Everton as part of the deal to bring Farhad Moshiri in as the club's newest investor.

That's the claim by The Guardian's David Conn, who reports that the club's Chairman will receive 22.75m for the 13% stake in Everton he is selling to Moshiri.

Robert Earl will earn 40.25m for the sale of his full 23% holding, a massive profit on his initial purchase a decade ago, with Jon Woods also selling a 13% stake to the Iranian-born billionaire.

Conn also addressed the speculation that Moshiri's investment could be a precursor to his longtime business partner Alisher Usmanov selling up at Arsenal to complete a takeover at Goodison by tweeting that he has been told this is not the case:

"I've asked the question about Usmanov; answer was definitely not: Usmanov staying with Arsenal stake, Moshiri taking Everton on."

 

Reader Comments (61)

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Wayne McNee
2 Posted 02/03/2016 at 20:48:45
Robert Earl... What a useless prick he turned out to be! Maybe he thought EFC was like an ISA.
Mike Byrne
3 Posted 02/03/2016 at 21:00:50
Who is the prick if he is walking away with £20m profit - him or us?
Gordon Crawford
4 Posted 02/03/2016 at 21:13:26
It's all very interesting. Maybe Usmanov will give up his allegiance to Arsenal and follow suit. :)
Peter Laing
5 Posted 02/03/2016 at 21:15:20
Sum total of Robert Earl's contribution to Everton: one appearance at a game, Sly Stallone... and what appears to have been some unscrupulous loans to the Club at high interest from the offshore BVI.
Dennis Ng
6 Posted 02/03/2016 at 21:15:53
While it's speculation, I feel that Moshiri's connections can only be good for us, Gordon. Unfortunately I don't think there will be any major development until the end of the season.
Gordon Crawford
7 Posted 02/03/2016 at 21:20:48
Me too Dennis. I am feeling very positive about this.
Hoping that it gets premier league approval soon. :)
Mark Andersson
8 Posted 02/03/2016 at 21:47:32
I will only get excited when it is all done and dusted.

I really would like for the sake of our younger fans, to live through what I experienced in the mid 80's.

Ged Simpson
9 Posted 02/03/2016 at 21:52:38
All fine
Andy Riley
10 Posted 02/03/2016 at 22:09:28
Anyone worked out the price per share that the sellers got from Mr Moshiri?
Dennis Stevens
11 Posted 02/03/2016 at 22:28:09
By my reckoning, Andy, it works out to be exactly: far too fuckin' much!
Ciaran Duff
12 Posted 02/03/2016 at 22:42:43
Not sure of the price per share but the figures above would value the club at £175m.
Colin Glassar
13 Posted 02/03/2016 at 22:48:22
Wasn't this supposed to be approved today?
Gary OFlynn
14 Posted 02/03/2016 at 22:53:20
Roughly about £5,000 a share.
Neil Mulhearn
15 Posted 02/03/2016 at 22:54:14
If those figures are correct, it values the club at around the £175m mark. It means the directors are very happy and the club has got no extra money.

He could decide to create a directors loan, to introduce fresh capital, but if that finances the £100m investment in the playing squad we are in breach of the FFP rules and we will get ourselves sanctioned from Uefa.

He could issue fresh shares in exchange for a cash injection to the club, but I got slated for suggesting that previously. So we are no better off than last week, just a different face in the boardroom.


Colin Glassar
16 Posted 02/03/2016 at 22:59:02
Neil, no one worries about FFP anymore. Now that Platini is out of the way, FFP (his diabolical brain child) is dead and buried.
Neil Mulhearn
17 Posted 02/03/2016 at 23:06:38
Colin, even if we can avoid FFP, would you be happy with him making a loan to the club of the reported £100m investment in the playing squad? We might have a better chance at challenging next year, but at what long term cost to the club
Andy Riley
18 Posted 02/03/2016 at 23:07:52
On this site elsewhere, it says there are a total of 35,000 shares in Everton Football Club. If this transaction values the club in total at £175 million that equates to £5,000 per share – which is about four times the price of recently traded shares.
Neil Mulhearn
19 Posted 02/03/2016 at 23:14:37
If the press reports are true, a 15% share in Arsenal has just been valued at 𧶀m, making the club worth ٟ.3bn. On that basis, I think it is fair to value Everton at around the 𧵧m mark, given the fact we need a new stadium and the investment we would need in players to make us a better team than them.
Colin Glassar
20 Posted 02/03/2016 at 23:15:37
Isn't that what Abrahamovic did Neil? Made multi million pound loans to Chelsea then wrote them off? This guy is one of Europe's top accountants so I'm sure he'll find a way around these things...
Gerry Morrison
21 Posted 02/03/2016 at 23:29:49
Colin, nobody cares about Financial Fair Play?
http://www.bbc.com/sport/football/35708136
Neil Mulhearn
23 Posted 02/03/2016 at 23:32:33
Yes Ambrovich made loans to the club, Eddie Davies did the same at Bolton. City did the same. The difference is, in these and every other case, the guy making the loan owned the whole club, so by making a loan, that improved the squad, the value of the club went up (in theory).

As he is only going to own half the club, if he gave money it increases in value for the other shareholder without them do anything. So, if he does make a loan, he would want repayments on it.
Ernie Baywood
24 Posted 02/03/2016 at 23:42:12
And what exactly was the criticism of Kenwright then? That he wasn't gifting us money?

I had no expectation of Moshiri throwing cash at us. I just want us to be well run. If he loans us money I'd fully expect him to be repaid for that investment.

Kieran Kinsella
25 Posted 02/03/2016 at 23:58:56
Colin, tell that to Galatassaray – banned from Europe today under FFP rules.
Gordon Crawford
26 Posted 02/03/2016 at 00:02:17
So much hypothetical, negative talk. Let's just wait and see what happens next. It hasn't even been approved yet. And the guy hasn't even outlined what his plans are.

But I'm choosing to think positive on this. All this negativity will give you an ulser.

COYB

Colin Fitzpatrick
27 Posted 03/03/2016 at 00:33:05
Colin #15, whilst there are some legal challenges to FFP it is incorporated into the Premier League rules under The Short Term Cost Control Rules.

I'm unaware these will cease in the future as controlled costs are essential to the wellbeing of the game. More here if you're interested:
http://www.financialfairplay.co.uk/financial-fair-play-explained.php
Gordon Crawford
28 Posted 03/03/2016 at 01:45:40
It said on MotD last night, that Farhad Moshiri paid £175 million for 49.9%. Sure that can't be right? If that's the case then we are valued closer to £350 million pounds.

Did anyone else see this?

Eric Myles
30 Posted 03/03/2016 at 07:56:58
Neal #14, I think the issue with creating additional shares to provide a cash injection is that the shares would have to be offered to all existing shareholders, although at £5,000 a share there might not be many takers.

Anyone know if new investors can buy into a rights issue or is it only current shareholders?

Neil Mulhearn
31 Posted 03/03/2016 at 08:28:04
Our Articles of Association don't require them to be offered to existing shareholders:

https://beta.companieshouse.gov.uk/company/00036624/filing-history

Kevin Tully
32 Posted 03/03/2016 at 08:29:34
From what I've read, the 49.9% cost Moshiri in the region of 㿼-䀆m. Full control and transfer of further shares will be made available once pressing issues such as the stadium are addressed, which makes perfect sense. (Although a little hypocritical after letting Goodison turn to rust over the past 16 years!)

It looks like it will be a gradual, phased handover of the club if targets are met by the new man, possibly another rich investor coming on board?

I know one thing for sure, the club will no longer be drifting along without direction, it's all good as far as I can see. Earl has his 㿔m, a price worth paying to see the back of that useless bullshitter, who no doubt had his snout in the trough through his dealings in the BVI.

Eric Myles
33 Posted 03/03/2016 at 09:14:32
Neil #28, I'm not sure what that link is supposed to show?

I was going by what Johnson had to do to invest his money, but then there were a lot less shares to make a 1 for 1 rights offering for at £4,000.

Can't see Moshiri doing that for 35,000 shares unless it's possible to make a reduced offering?

Neil Mulhearn
35 Posted 03/03/2016 at 11:55:00
You can see the revised Memorandum and/or Articles of Association issued in May 2014, which show that new share issues don't need to be offered to all existing shareholders.
Tony Dove
36 Posted 03/03/2016 at 12:03:17
From what I have read about Mr Usmanov, we really don't want him anywhere near the club – even as a spectator.
Barry McNally
37 Posted 03/03/2016 at 13:39:34
I'd settle for winning the Premier League, fuck the Champions League! I could then retire peacefully from all things associated with football apart from 5-a-side once a week. The beautiful game has been ruined by money – controlled, managed and played by greedy bastards.
Ian Robert
38 Posted 03/03/2016 at 14:32:04
Guys... just a thought... is this reporter only doing what all the other media outlets do? Guessing? Didn't The Mail quote £5k per share (approx) so multiply that by the 8,500 shares that were registered as Earl's and we get the 㿔+million?

Do these guys have to say what the shares were sold for? I'm guessing they don't (more guessing there). And I assume the shares or price paid to one guy could be different to another?

I'm just guessing, I guess... but so are the press. They will have to say who owns how many shares... but that's all.

Harold Matthews
39 Posted 03/03/2016 at 14:37:51
Tony. What have you read about Mr Usmanov?
Eric Myles
40 Posted 03/03/2016 at 14:48:31
Ian #34, from what I've gleaned from various TW posts since Moshiri has purchased more than 30% of shares he's obliged to make a general offer to other shareholders at the same price, if they're the same class of shares.

So the price will become known.

Ian Robert
41 Posted 03/03/2016 at 14:57:09
Eric #34, thanks for that Eric, in which case the smaller shareholders should be receiving an offer too?
Rob Wilson
42 Posted 03/03/2016 at 15:25:52
Ian (#34) and Eric (#36), I don’t think that’s the case. The club is a private limited company and not governed by the same rules as a PLC regarding compulsory offers etc which I believe you are now quoting.

The rules relating to share issues and purchases for EFC Ltd are in its Articles of Association which you can get for free on Companies House website.

From my own quick look through them – shareholders can trade their shares as they see fit but the club is not bound to register the new shareholder and the board of directors can issue new shares as they see fit and are not obliged to offer these to existing shareholders.

Brian Wilkinson
43 Posted 03/03/2016 at 15:51:07
So Bill can now payoff his remortage out of his 㿂 million and still have half his shares still in Everton, and remain chairman.

Love him or loathe him, you have to hand it to Bill for the deal he got.

How about a little million donation, Bill, to the Former Players Foundation.

Ian Robert
44 Posted 03/03/2016 at 16:23:18
Eric (#36), I have checked all over net and can only find reference to 50%, in UK law where he would have to make an offer based on the highest value paid for the shares in last 12 months. So I guess that's why they kept it below 50%?? Anyone?? Also, at 90% he can force you to sell.

If that's true, he would be best waiting 12 months before buying the rest... OR get a "proxy" to buy the buggers on his behalf? If he's handing out ٣k a share, he can have mine today. :))

Ian Robert
45 Posted 03/03/2016 at 16:26:03
Brian, I'm with you on that... but in fairness he couldn't have foreseen the monies coming into footy... nor that the share price would rocket. If he's made a large profit then lucky him. Jammy sod. :)
Dave Abrahams
46 Posted 03/03/2016 at 16:29:50
Harold (35) you can Google him under Alisher Usmanov. It tells you quite a lot about the man: the good, bad and the ugly... a character, friend of Putin and Abrhamovich, served time for fraud, later removed off his record, he is a philanthropist, giving millions to the Arts; you might like that Harold. Anyway it is a good read if you've got the time.
David Price
47 Posted 03/03/2016 at 16:30:27
No issues with the FFP.

On another thread, each Premier League club will earn roughly 𧵏m with the new TV deal next season. Given that each team can spend 㿊m above a season's income for three years without punishment, providing the owner can cover such an overspend and not increase the clubs debt, Fahrad has timed it perfectly to buy in; thankfully, it's us.

Tony Dove
48 Posted 03/03/2016 at 17:07:30
Harold@35. Try this:

http://atlanticfreepress.com/news/1/1234-alisher-usmanov-is-a-vicious-thug-criminal-racketeer-heroin-trafficker.html

Even if you can't access the article, I think you will have got it's drift!

Harold Matthews
49 Posted 03/03/2016 at 17:14:39
Cheers Dave. I'll look him up. Millions to Art? Hmm, I sold a piece to a Russian 35 years ago but the gallery took 45% of £1,200. Buttons today but I was quite chuffed at the time. I wonder if Usmanov loves the Racing scene.
Dennis Ng
50 Posted 03/03/2016 at 17:15:51
Tony, I don't see any relation to Usmanov. Is that the right article?
Dennis Ng
51 Posted 03/03/2016 at 17:27:00
Never mind, I found a more acceptable piece I guess.

http://www.theguardian.com/world/2007/nov/19/football.russia

Tom Hadley
52 Posted 03/03/2016 at 17:34:27
In several years of following ToffeeWeb I don't think I've ever seen a thread where we all had to concern ourselves with the ins and outs of FFP. All we've ever had to discuss is the chance of having even a small pot to piss in.

Refreshing change in itself, isn't it?

Tony Dove
53 Posted 03/03/2016 at 17:36:13
Dennis, just google atlantic free press and search for Usmanov.
Graham Mockford
54 Posted 03/03/2016 at 17:46:27
And in latest news no-one still knows what's going on.
Harold Matthews
55 Posted 03/03/2016 at 18:51:04
Just looked Usmanov up on Wiki. Don't know what all the fuss is about.
Colin Glassar
56 Posted 03/03/2016 at 20:19:39
So has he been accepted yet? I haven't seen anything official yet. And when is he going to talk to us mere mortals? I want to hear how he wants to take us forward.
Dave Abrahams
57 Posted 03/03/2016 at 20:24:33
Colin (50) patience, it hasn't been a week yet, by the way you are not a mere mortal, you're an Evertonian!!!!!!
Colin Glassar
58 Posted 03/03/2016 at 20:38:59
True Dave, but I heard that his proposed buyout had to be approved by the Prem by Wednesday.... I haven't seen anything official.
Andy Walker
59 Posted 03/03/2016 at 22:16:16
Eric (#27), no need to do a rights issue, just a placing for Moshiri to subscribe to and take the controlling interest. Share dilution for the other shareholders (that's just tough) and new cash for our club. Job done.
Ian Robert
60 Posted 04/03/2016 at 00:36:28
I think this thread has run away with itself, as usual. The price paid for shares will probably never be known, and I cannot see the parties involved telling anyone... although maybe a clever person will be able to take a good guess from next year's accounts??

As for the idea of creating new shares... I cannot see why they would do that; he has what he requires control-wise so investment would surely come from his pockets in the way of loans to Everton.

Just a note for the people that love a conspiracy theory or two (and we know we all do)... I bet this guy is less "transparent" than the previous shot-caller.

Michael Kenrick
61 Posted 04/03/2016 at 05:47:17
Nothing wrong with a wide-ranging discussion, Ian. They told us last time what the share price was: 𨀑. So they may well tell us this time around, when it is done and dusted.

Seems some of the journos believe they already know... although ٣,000 seems a little bit too much of a round number.

However, there is no way anyone will figure it out from this year's accounts (next year's are a long way off) as the shares are always assigned a nominal capital value of one big fat pound sterling each, as far as the accounts are concerned (See Note 18: Equity Share Capital).

And you get the feeling, reading those Articles of Association, that the club can do anything they damn well choose as far as shares are concerned. Peter Johnson did a rights issue while he was a majority shareholder; it provided a mechanism for him to put ~㾶M into the club, while he held a 68% stake.

I don't believe the top guy needs to own 100% before it makes sense to pump money in... Let's wait and see...

Eric Myles
62 Posted 04/03/2016 at 07:16:29
So Rob #38, you reckon there's no chance of me getting hold of a couple of hundred shares then?
Brian Harrison
63 Posted 04/03/2016 at 12:06:08
I have just been reading about the goings on of our near neighbours in their ongoing court case. A company working for Gillette took FSG to court saying that the club was sold too cheaply. They asked for John Henry to take to the stand and answer questions under oath, but he refused and FSG put forward Ed Weiss.

Under questioning Weiss said they bought Liverpool without knowing anything about the Premier League. He said they only attended 1 game during their due diligence and the game was less than thrilling.

He went on to say that they assesed that Reina and Torres were past there sell by dates and Mascherano wasn't near the first team so another who could be let go.

He also said they had to spend considerably more than they had wanted to try and improve the team. His assessment was the team was worse than they had believed. It goes on to list a whole catalogue of mistakes.

But what it highlights to me is thankfully we have an investor who understands all aspects of the game. Also by keeping the present chairman in place, there will hopefully be a seamless transfer of power.

I also think it's another reason to be joyful that the Americans didn't get control of our club. As they don't seem to understand the nature of the Premier League or the relationship the fans have with the club.

I read of Liverpool's new approach to season ticket seats not occupied by a certain time. They are going to have an area were fans without tickets will be offered the unfilled season tickets by a certain time. Good luck with that one.

Now we may have got things wrong, especially financially, over the years but I think our chairman thinks more of our fans than their board do of their fans.

Ciarán McGlone
64 Posted 04/03/2016 at 13:49:04
I don't understand the reaction to the natural hyper-vigilance and caution being displayed in relation to this share purchase – because that's all it is at this stage – a business transaction.

Surely we are entitled to our cynicism given the history of Kenwright and his cronies. Some people have short bloody memories.

Michael Kenrick
65 Posted 04/03/2016 at 16:55:40
So here's a question: You're an entertainment magnate and one of your mates gets you to 'invest' in an English football club to the tune of ٧M, buying up 8,146 shares that give you 23.3% ownership. If you were to sit on that stake and do nothing for the next 10 years... what would be a reasonable rate of return on your investment when you finally came to sell them and get out?

By my (possibly questionable) calcs, Robert Earl will nett something like 㿋.5 M in Capital Gain when Moshiri buys all his shares. If I'm doing it right, that's an APR of 17.4%.

One hell of a whopping rate of return through the tumultuous years of the crash... And people wonder why anyone would invest in a football club???

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