Report: MSP looking to invest £105m for 25% stake in Everton

An interesting stance on how MSP Sports Capital, linked with #EFC talks, approach their investments.

Two seats on a small board means they want influence and control. Good.

And once anyone sits in that first boardroom meeting, I would imagine they would challenge the "strategy" and call the incumbents out.

Not long until Monday.

I hope it's the two seats currently occupied by the Chairman and CEO.

The words "blind leading the blind" come to mind…

As long as they know about business — that's what matters.

I don't like the Premier League experience thing from owner to manager to player. It doesn't matter in my option.

We have football people to run the football.

I think I said elsewhere, but it was so refreshing to hear the Hollywood owners of Wrexham a week ago saying they didn't worry about what went on on the pitch and left it to those down below.

Yes, they will demand for their investment. But leave it to people who understand.

We've had too much interference from people who think they do but really don't.

I think Moshiri has woken up. I also think that, if this comes off, there will be a few nervous figures in that board room. If they stay. I envisage if this happens, they will be kindly given their notice.

I understand our position in the lPremier League table will have an impact on the price of the club, but that seems very cheap these days for a well-established Premier League club.

If this is true about the bid and the price offered, it might well reflect what circumstances the club currently finds itself in. We could go down!

I think that, if it comes about, the investors will not want to just sit on the board and glow in the glory of sitting alongside True Blue Bill. It's more likely it's the toe in the door towards a larger shareholding, more influence, and more seats on the board.

"At MSP Sports Capital, we only pursue investments with operational control or significant influence."

Wonder what Bill thinks of that?

Perhaps this potential deal has been publicised to draw in other investors?

The most encouraging thing is the apparent demand to have a presence on the board. That would shake the club up and maybe even start the cleanout.

It seems obvious the owner isn't selling and is looking for investors. Any stakeholders will definitely want a voice.

The business side is a disaster and has been neglected for years. The playing side is hardly any better. The club is not what it used to be.

The prestige and honour of our board will be lost forever.

I sat and watched the game last night too - my intake of Premier League football has waned massively in recent years. I used to watch as much as I could, but I've lost interest in the game since it morphed into what is getting close to becoming 'touch football'. Add VAR into the mix and most top level games are dull as dishwater - it only interests me when Everton are playing.

I much prefer cup games with no VAR, and players actually being allowed to tackle. It was a cracking game last night - very refreshing to watch.

Had the team not been performing so badly, and a lot rests on their shoulders for 'application', I doubt there would be the noise directed at the owner – who can in my view only be criticised for not managing the P&S / liquidity element better.

But again in his defence, he has employed a board and executives to discharge his wishes – and he's financed it.

The article on Kenwright in the Mail a few weeks back sums up the problem at Everton. I'm not sure 𧴡M and two directors will fix that – look across the park!!

If I were Moshiri, I'd leverage and finish the job myself and sell out when the ground was completed. I'm guessing his usual lines of credit are not as liquid as usual due to current political issues…

As was the case with Chelsea, the impending sale of Liverpool and Manchester United will flush out several potential buyers, but this investment (assuming it is the limit of MSP's ambition) would complicate a full takeover.

Dyche has given us considerable hope that we will start to move up the table but we want Moshiri, Kenwright and Co out as soon as possible before they do any more damage.

"It seems obvious the owner isn't selling and is looking for investors. Any stakeholders will definitely want a voice."

That sounds familiar… I think I first wrote that 15 years ago!

That deal, it is understood, is separate to any talks over an equity stake in the football club, with that search being conducted by investment banks MUFG and JP Morgan Chase."

So it seems MSP are looking at an investment for 25% of the club excluding stadium... hmm

Just asking.

Don't get me wrong: on a personal level, I've got some great American friends but the fact is even at massive money generators, Man Utd and Liverpool, the American owners are despised.

Football isn't a business, well, it is… but not in the conventional way. The seed money to take a club from mediocrity (our position) to base camp Everest (Top 6) is monumental. Even Usmanov's reputed 𧺬M hasn't got us off the tarmac at Manchester airport.

American owners don't seem to grasp this – the idea footy success can be generated from the usual practices of marketing, prudent spending and powerpoint presentations is for the birds.

Successful football is about funding monumental mistakes time after time until enough shit sticks or you get lucky with a Klopp.

Americans with 𧴡 million can't do that.

I know it's early but have you been drinking, mate?

Have you been the 'Spoons for a full English???

We have football people to run the football.

When did this happen, have they just arrived? Were they here when we bought three No 10s?

[Sorry, bud, just poking fun...]

On to Monday as I feel confident after last weekend.

COYB

The small window of opportunity that Moshiri mentioned very early in his tenure, is now well and truly bolted shut as it doesn't look as if the really massive investors would be at all interested in Everton FC or if they are that Moshiri wants to relinquish full control of the club.

The club will now have to follow its original mode of operation, which the likes of Brighton, Brentford et al are now following and hope that the manager and his staff can get the players to perform at maximum levels in most matches. Buy cheap, sell high and hope that the squad is good enough from season to season.

Our dreams of being among the elite will have to be put on hold for at least a few years, but whilst that's disappointing for many of us, having a financially stable club led by people who might know what they are doing would be welcome as would the completion of the new stadium.

It raises the question of Stadium ownership again – something which remains unanswered in my mind. I mean, if you look at the last Annual Report, Everton Stadium Development Company is a 100% wholly owned subsidiary of Everton Football Club Co Ltd – 'The Group' in report parlance.

And all the monies for construction appear to be going through Everton's books. So quite how the new stadium can be separated from the club / group is quite a mystery to me as the Everton Shares are in the whole group, including the new stadium.

Or have I got that badly wrong?

Sure Moshiri has not covered himself in glory the way the board has functioned and you could argue for some of the managerial appointments that have been made.

He has put a lot of money into the club though and deserves credit for at least attempting to improve our prospects.

The people scouting and doing the buying of players are the main culprits in my eyes. Kenwright needs to go for the benefit of all concerned, as for the others I don't really care.

I don't see 𧴡m from MSP getting them 25% of the club and 2 seats on the board as well, but who knows it depends how badly Moshiri needs the money.

On the inquiry into Man City, you would have to think there are many more examples of murky dealings at other clubs if they really want to start digging.

We've been out of the elite for long enough, please don't place us at the Brentford and Brighton level.

I want to see a complete buy out to get us back into the elite, which is where we probably would be now if Moshiri hadn't made the catastrophic error of allowing Kenwright to continue as Chairman 7 years long years ago..

If so, I/we can hope, one is the Chair, and the other one is L'il Miss Dynamite's ! Not bothered about Sharp's seat, because he is like those dog's you used to see on the rear parcel shelf of cars back in the day, says f*** all but just nod's all the time, no matter what the motion is.

Maybe this is a clever move by Moshiri, well he can't be as daft as he portrays, as the Iranian Stan Laurel can he ? By bringing proper business people in, there will be serious puckerings in the nether regions of the aforementioned, and accompanied by " Oops the game's up, we better resign, my little Chickadee ". So, maybe not a bad thing after all, but as Brian H @ 11 says it seems a trifling amount for a Club of our standing !

It wouldn't make commercial sense for Moshiri to agree.

Too many examples of the clubs then going bust to mention. But just recently in Rugby Union, Worsceter went bust but the playing side only. they had hived off stadium, training grounds and basically everything.

Sounds a bit too familair to me

I agree with Michael though regarding transparency of stadium and club; seems like they are both one of the same legal entity so, as an investor, you can't really direct that capital – unless you have seats on the board and can then make a case for where money is spent. I think…

Moshiri will be diluted as new equity is issued to MSP, and Kenwright too as this is a secondary not a primary transaction (Moshiri isn't selling his stake and then putting the money back in).

Then these guys get two board seats to oversee their investment – their job is to make a return on this investment – and hopefully that will mean Moshiri engaging some proper management as this lot will agitate to remove Kenwright & Co because they're fucking useless and totally out of their depth.

That's all Moshiri needs to do in reality. The value of the equity will then grow as the stadium is finished – investors never pay for an Engineering & Construction project upfront; they risk it and, once completed, the value will rise. So these guys and Moshiri could cash out with a profit once all up and running.

You have to think of EFC stocks and shares as like being listed on the market and the market is heavily discounting the stock due to the poor performance of the team, the management board (losing money), and the financial cost (risk) of the stadium project consuming capital.

Moshiri can't sell up now as his stock is effectively too discounted. I can do all the maths but I'm quite busy but on the face of it, it's okay IMHO. Best thing the club can do now is survive in Premier League, then thrift in the summer.

But they need a BIG plan to attract new talent and should be scouting the markets with Dyche and team to play how they want to play and look to plug those gaps, putting players in the right positions. We can't do scattergun buying and big contracts anymore.

However this does not seem to fit that agenda.

As Michael says the stadium development is in the clubs books and Bk would still have the majority with DBB and Sharpy as his acolytes.

Moshiri is possibly lining other investors up with a view to buying BK out of his contract and then firing Sharpy who has been as much use as a tailors dummy and thereby wresting control from BK.

It still seems a strange deal to give 25% and 2 board seats up for 105m though.

One other thought I had was maybe the shares being bought are only the stadium holdings LLC which would make more sense seeing as we've spent about 400m on the stadium development so far.

Anyway the change in the boardroom is absolutely necessary and can't come quick enough for me.

Whoever invests or buys it wont let us compete with the very wealthy clubs those days are long gone. Maybe we as fans need to reset our ambitions, rather than thinking we can compete for a Champions league spot, we need to be looking at the European Conference.

MSP Sports is run by Jahm Najafi & Jeff Moorad, the names he mentioned.

Anything to get rid of the present board is a big plus, plus of course more cash.

Only to be spent more wisely from now on!

He sells 1/4 of the club. Brings on investment and expertise then his remaining 3/4s increase in value when the stadium is completed (especially if we escape relegation)

Could actually make money by selling a part of the business to make the overall business stronger. These billionaires are billionaires for a reason after all.

Just a thought.

That investment, maybe, will help fund the extra money that the stadium will cost. Maybe then that will act as a starter for other investors to come on board when they can buy shares comparatively cheaply. One thing though, they evidently are keen on involving themselves in the the running of the club.

Which sound bloody good news to me, if they help remove that carbuncle on the club's backside, True Blue Bill!

I think, though, that I go along with Brian (51), we may no longer be able to have our sights on being a natural part of the top six, seven, or however many clubs get taken over.

I think we will have to set our sights lower, and the first step is avoiding relegation, if we can do that, there is a major rebuilding job to be done on the squad. The rebuilding job will not be easy and not done overnight. And as Brian says, maybe set out sights on winning cups, and eventual regulars fighting for European places.

First of all though, I look ion this story of investment as really good news; but lets see what happens in the coming months. At least it looks like we have a fair chance now, of taking the first, and hardest!, step.

Therefore the club will not receive a penny of this money, but Mr Moshiri will have 𧴜 million more in his bank.

Can someone more enlightened (Paul the Esk) explain why the club benefits?

The only way this benefits the club is if Mr Moshiri gives the money back to the club in terms of loans or issues more shares.

I may be thick here but if I had a company where I had 95% of the shares and called a meeting where we voted on who should be on the board, I don't care how many of the existing directors had their mates there, I would vote them off whether they liked it or not.
BK, DBB and the rest are there by the permission of FM, nothing more, nothing less. Can FM be bothered to get involved in the day to day running of the company with all his other interests? No. Without BK and DBB to draw the fire from the irate supporters would FM be in the firing line? Yes. Do BK and DBB do anything major without the approval of FM? 99% no.

The only cards held by BK, DBB and others are negative publicity about FM which they would have to use should they be removed i.e. Foreign businessman with no connection to the city or the club and just out to make a fast buck.

So the cash goes onto EFC's balance sheet and the shareholding is diluted. Moshiri isn't pocketing anything. If I'm reading this correctly.

We will not be privy to the terms of the deal but few people stump up £100m plus for a minority shareholding with limited power in a small, unstable and low profit business like the average football club. One can therefore only imagine there will be a mechanic to further increase ownership along the line, so in effect a staged exit from the football side my Moshiri. Which surely would make perfect sense to him, to get away from the 'emotive' side of the business and stick with the calmer real estate side.

Where the £100m goes is also not clear. It could arise in new share issue and dilution of the current shareholders, with the money going in the business. But it could just as easily be selling shares to the new investors, in which case Mosh has £100m plus to plough into the newly separated real estate venture.

Two new directors gives us a quorum and no need for flotsam and jetsam in the form of BK and DBB. That would be a good outcome

It's both as the stadium is capitalised as it's built (asset) but there may be debt (and some provisions) on the Balance Sheet offsetting that. Not sure without seeing the Financial Statements. But it's not purely a liability.

Brian #47
Those days are not long gone. Whoever wishes to become owners have to become the largest share holders with over 50% of the shares, these investors will be buying if that is the case 25% of F.Moshiri's shareholdings giving them about 23% of shares and second largest shareholders, that is why they want positions on the board.to protect their shareholdings. It does not represent their net worth.
As Man City are finding out, it is how that investment can be used without running foul of the FFP rules. not how much the wealth of your owners are.

I may be wrong but I believe that is how MSP wish to invest in Everton F.C.

We have all said that the one good thing Moshiri has done for us is build the stadium. But if we end up with new owners/investors while Moshiri or someone else owns the stadium, does that not leave us as vulnerable tenants to a landlord that can charge us what they like?

Not sure we all signed up to the idea of demolishing Goodison to go and rent a stadium. As I said, I could be way of the mark.

I've never trusted Moshiri (why would you) but then I see that the mad bastard is actually building us that beautiful stadium (I never thought he would), and I just think 'there's got to be a catch'.

sorry Brian just read your identical post.

If EFC Co Ltd is issuing new shares to the value of 𧴡M – this is a primary transaction. The capital then goes on to the balance sheet and the number of shares increases. This is dilutive to current holders. The cash can then be used for stadium construction.

If Moshiri sold his stock – a secondary transaction – he would get the cash to do with what he wanted. Effectively cashing out. The only impact to EFC Co Ltd is these guys now have 25% and (likely) seats on board. No extra cash for EFC Co Ltd.

You absolutely do not want to separate the stadium and the club as the club will become a tennant. Same as in 1892.

The club has to capitalise the asset on its Balance Sheet, and get the revenues etc from it. Otherwise, EFC Co Ltd sell the stadium, get the cash (onto the Balance Sheet), invest that on players and rent the stadium (as a cost on the Profit & Loss Statement). The stadium owners could dictate all financial terms and would gain all revenues from this asset.

"The lease, which is conditional upon gaining planning consent for the proposed new stadium and securing funding for its construction, will run for a period of 200 years at a peppercorn rent.

The Blues have secured a 200-year lease on the proposed site of the new stadium at Bramley Moore Dock
"The signing of the agreement is a significant milestone in the project and means Everton effectively now controls the land upon which a new stadium would be built. '

Sky News,
22/11/17

Don't see how the Stadium can be separated from the Club.

At least that's how I read the situation so I posted links as well so those more conversant with such reports could check if I was reading them correctly.

So, if there are 1,000,000 shares and you hold 10 and they issue another 100,000 for the 𧴡M, the club should also allow you to purchase 1 share at the same price (105,000,000 divided by 100,000), ie, � each.

Obviously, Farhad Moshiri won't but the rest if you can take up the option. Stand by for the offer letters.

Also in notes (Fixed Assets) you can see the Assets Under Construction capitalised at around 㿀M. Be interesting to see what has changed in 2022.

The truly horrifying bit is the net losses for 2020 and 2021 on the P&L (=𧶲M).

Show me the money, Jeff!!!

@Nick Page, where are you getting your info from on the issue of new shares?

I don't think you're thick Phil, because I'd do exactly the same thing as you would and get rid of the very inadequate people, who haven't got the skill set to move us forward. How Moshiri hasn't done this is absolutely ridiculous, and Everton, have suffered very badly because of this.

The smart money would be on a contract, that has let Bill Kenwright remain, but this is just speculation. But surely it would be better for Bill Kenwright to just leave, rather than take all this flak instead of Moshiri?

Bill Kenwright and his friends are no longer wanted, so I do wonder if it was Moshiri, that made sure there was a contract, just in case things never went according to plan? At least now he has somebody to take all the flak, instead of himself, especially because it's already bad enough because he's lost millions?

Or maybe Kenwright is our saviour, and he now realizes that Moshiri, might be able to separate the club, and the stadium, and he's going to stay around to fight these plans, even though he brought Moshiri to the club?

The second best thing about Saturday, was that it badly backfired on the liars, that used their friends in the media, to try and blacken the good name of thousands of match going Evertonians, (oh dear, how do deceitful sick minds actually think?) and because their plan failed, they had no choice but to stay away, FOR THE GOOD OF OUR TEAM.

"The Company" no longer owns Everton Stadium Development.

It's good reading all the different opinions about this, but I can't offer an opinion because it's all over my head, and I don't understand any of it!!

The price of the club benefits the seller, not the fans. Surely it's better for us if the club sells for a low amount leaving more to invest in the squad; that seems to be the case with Newcastle.

"I wonder why Kenwright, and his nepotistic disciples still remain? I think I've just read (Phil@56) that it's to keep an eye on the foreign businessmen who are out to make a fast buck?"

"But surely it would be better for Bill Kenwright to just leave rather than take all this flak instead of Moshiri?"

There was a thread a few weeks ago about "The Cult of Bill" (really, with an 'l' not an 'n'!) that explained all that.

Bill really does think he's the saviour of the club.

I would have to see the 2021-22 accounts to see that as it would be classified as a disposal and major transaction.

Regarding the share issuance, I am speculating that it's a primary transaction and a dilution of the existing equity base. Otherwise it's a disposal by Moshiri. If they are however investing in Everton Stadium Development Ltd, which is now not part of EFC, then that's a different matter.

And if that has happened, why would they want a seat on the board of the latter given it's a different company? (I don't think it is by the way.)

It's an old trick, our Chairman has already done this with Finch Farm and something that would have cost the club around 㾶 million will end up costing over 㿼 million instead.

When Liverpool City Council bought Finch Farm and reduced our payments, Robert Elstone described it as a very innovative move. It might have been for the council but it definitely wasn't for Everton.

So, if this is true about the new Everton Stadium at Bramley-Moore Dock, then it's very, very worrying news.

Emir of Qatar interested in buying Manchester United for ٢.5bn

Just saying…

I just don't see how we get anywhere near ٟbn if Newcastle went for 𧷤m.

A billion gets Moshiri most of his money back, but if I'm an investor and I can get Newcastle for a third of Everton I know which I'm going to go for.

Notice of ceasing to be a person with significant control of Everton Stadium Development Ltd was posted, effect 25 November 2021, stating that this applied to Everton Football Club Co Ltd. It seems that EFC was replaced by Everton FC Finance Ltd on that date; they hold directly or indirectly, 75% or more of the shares in ESD.

So it has been split off. More will be revealed no doubt in the 2021-22 accounts, due before the end of March.... but here's the bad news:

Kenwright, Barrett-Baxendale and Ingles are the Directors.

I believe the freehold of St James's Park is owned by Newcastle City Council.

Everton with a brand new ground on the waterfront, are allegedly a very good deal for whoever buys them Kevin, and with the way Football is going, I tend to agree with this.

I know what you're saying Kevin, but firstly I don't think you would get Newcastle so cheaply now, and secondly if United are worth so much, then surely it's better for investors to buy cheaper, and try and build a club up, like the Arabs are doing at Newcastle?

9 months ago, the Telegraph reported that Moshiri was looking for ٟbn – half for the club, the other half for the stadium.

If that source was accurate – and it was widely reported and I don't think denied – then, unless our value has more than halved in less than a year (possible but not likely), that supports the idea that Moshiri is selling shareholding in the club and keeping the stadium separate.

Everton FC Finance Limited is also 100% subsidiary of EFC - look on Note 12. No panic.

If we are worth ٟbn, then Man Utd are only worth almost five times as much. Some consolation?

Everton FC Finance Ltd was incorporated in December 2018 with a single ٟ share held by EFC Co Ltd, the Relevant Legal Entity (owner) with Barrett-Baxendale as one of the Directors.

The company name was then changed to Everton Stadium Development Holding Company Ltd on 24 November 2021, with Kenwright becoming a Director on 4 June 2021.

No doubt some interesting shell game going on in preparation for the ongoing corporate shenanigans in relation to the stadium, its ownership and financing.

May need Paul the Esk's views on sorting this out as to what it means. Has anyone who tracks his work seen him publish anything related to this?

Nick: a lot of these changes taking place after the reporting period for the 2020-21 Annual Report and Accounts – hence the considerable confusion!!!

The club is being hived off seperately. The financing of the stadium is seperate and the 𧴣million for new shares is a loan to Everton Football Club, with two further Directors positions.

I don't think Bill and Denise are going anywhere if this comes to pass. Kenwright, Barrett-Baxendale and Grant Ingles are nominal Directors only of the Everton Stadium Development Company, which is probably controlled by a offshore entity. The management of the Stadium Development Company being seperate. Obviously it is performance wise.

Is there a Premier League rule that the Stadium and Club have to be associated and dual Directors would fulfil that requirement?

Moshiri will be quids in, if this comes to pass.

Moshiri would have to be an idiot to take that price. Done deal then.

Not sure there's anything to be concerned about. It appears to be the same sort of company setup the likes of Arsenal and Spurs used for their ground developments.

Does Moshiri own the land to sell, if so what would that be worth, anyone have an idea?

Obviously the stadium costing a few bob to demolish is a negative.

Are you, by any chance the Tony Dove I worked with in the 1980s at Warrington & Runcorn New Town?

'Goodison Park Legacy project

In February 2021, Liverpool City Council voted in favour of Everton's 㿾m plan to redevelop Goodison Park into a mixed-use scheme featuring 173 homes and 51,000sq ft of offices. The approval followed the green light for the club's new Everton Stadium, which is now under construction and due to complete in 2024.

As well as the homes and office space, the outline proposals for the Goodison Park site in Walton comprise a 63,000 sq ft, six-storey care home, more than 107,000 sq ft of space for community uses, and 8,000 sq ft of retail and leisure space.'

Wikiapedia.

Could Goodison Park be in a separate company as well ?

Sounds like a pile of crap to me. It once sounded amazing. It's beginning to give me real concern.

Oh for a Jim Ratcliffe to step up to the plate!?!

So you can sell one and not the other — see Derby County.

My money is still on Moshiri focussing on real estate to get the money back to Usmanov and relinquishing control of the football club.

There are many different shades of grey in this. The new stadium and Goodison (Re-development Inc) could be held separately. Moshiri could keep a minority shareholding in the club for an upside. Equally the new owners could own a minority state in the real estate and/or a long-term use contract, with possibly an option to buy outright down the line.

This gets Moshiri off the hook in many ways and gives him a viable exit strategy.

That was probably to objective from the start.Even though MoshirI put in a lot of money I away had the feeling he was quid's in investment wise.It also explains his arms length approach to running the Club.

As for Kenwright he has been the beneficiary of the asset stripping of the Club, throughout his tenure.

Raymond#108

Thanks for asking the really good question.

I moved to Bristol in 1987 and still here. Cheers.

Kenwright allegedly had a condition in the sale agreement that keeps him as chairman for as long as he wants, which is why I guess Moshiri can't or won't get rid of him.

Raymond #101,

Just to add to Jerrome's response, Goodison Park has a mortgage of 㾻M secured by Kenwright as part of his asset stripping and at last count had a land value of about the same.

I am very excited about this.

OK, so here from your American cousin is what I know about these guys (quickly, because I have a Zoom meeting in 15 minutes).

MSP Sports is Jahm Najafi, minority owner of the NBA Phoenix Suns, and sports/media investor Jeff Moorad, the celebrated former player agent whom I interviewed once or twice back in the 1980's, and their partners -- one of whom, Crystal Palace investor David Blitzer, has been working with them on European footy club acquisitions. They own four clubs, the most prominent being Augsburg.

These are quality people. Najafi has handled himself with great integrity in the Suns' ownership scandal, which involved the forcing out of a racist, misogynist majority owner named Robert Sarver.

Moorad built a reputation for integrity as well (hard concept for an agent!) and his investment choices have been highly successful.

Pure opinion here: There is no way these guys show up at Goodison unless they are really serious, and there is no way they're going to settle for being long-term junior partners. I personally believe that this 25% is a nose under the tent flap to buy full control of Everton. Eventually.

That's all I have time for now. More later.

Not even a trial yet the CPS are reviewing evidence to see if there is a case to be made. Not sure why it took 2 years for the police to gather evidence.

If not done so already, join the Everton Home and Away group on Facebook. All tickets on there are face value and people can usually get a couple of tickets from there. There's a list of trusted sellers on it too.

Failing that, look at Paul Cronin also on Facebook and a member of said group – he does match deals in the Segura bar on County Road. Includes a free bar, a match ticket, food after game and hosted by an ex-player.

Thanks so much.

I used to always have contacts when I was over there but the landscape seems to have changed.

Again thanks.

Surely it's only of interest if it's the latter, or am I missing something?

It's for a minority stake, so discounted heavily. Buying the share that takes you past 50% is worth far more than each of the shares that got you there – as that would give you effective majority control over the club... you don't really need to buy the rest, so each of those subsequent shares becomes worth less to you as well.

Shares in Everton are not traded on a liquid market, nor particularly priced according to earnings or losses, so the price of each share (or a minority batch of shares issued) is not a very good indicator of the value to someone of controlling (yet alone owning) the whole club.

In addition, it could well be true that a lot of the value to Everton or Moshiri of a substantial minority shareholder like this would be in their expertise, contacts, and potential new revenue... and the buyers would know this and discount their offer accordingly.

Like almost everyone else, I hope if it's true it at least brings a sufficient injection of brains to the Board that they finally realise Kenwright's time is up.

This may have something to do with the statement put out by the club on the 26 July 2019:

Denise Barrett-Baxendale will oversee the work of Stadium Development Director Colin Chong and take responsibility for the new Stadium Project, including the delivery of the community-led legacy of Goodison Park.

Everton Business Matters Special

Politics aside I have wondered previously if Qatar may have become involved with the club given Tim Cahill's ties and his prominent position in their Aspire Academy but it seems they are now looking at Man Utd.

As all realists know, there already is a super league and we're not part of it. Possibly our best future lies as the senior part of an affiliated club network pooling resources, developing players etc.

Certainly Augsburg are developing young talent like the US striker Pepi and the Croatian striker Beljo. We could benefit.

It's not a very traditional model but being an extremely traditional (old fashioned / massively behind the times) sort of club has been a big part of our current problems.

But MSP, if they're going to buy 25%, will have checked the books, and investing in the club must be positive?

Can't stretch to the whole pizza?

How about a slice?

Contact Despereverton.

Moshiri appears to have been advising and doing himself, for what he and his mates got his billions for. Putting together complex investments that will eventually yield a substantial profit. The main profit generator in his Everton investment is the dockland development, the development of Goodison Park and the Liver Building on the side.

With Everton, he might be quids in eventually, but he is looking for others to now provide the capital. Bill's value to him is that he must've had some influence to keep sanctions at bay from the government and the Premier League governing body. Bill ran Everton, but not as Moshiri expected, having to get involved himself and providing more funds.

MSP will secure their money and make sure to get a return on their investment either by agreement or by effectiveness at Board Level. They may try to increase their shareholding and sell the Club to profit at a later date. MSP is a positive move when you look at what has gone before.

Moorad wrote this last year:

"Fundamentally, investors are attracted to the disproportionate annualized returns available in sports, with limited relative downside risk. Rising valuations have shown to be uncorrelated to on-field performance or to the broader market cycles..

In order to achieve favorable risk-adjusted returns, investing discipline remains critical in an industry where emotion can easily take hold of the uninitiated. We believe it's critical to evaluate both macro dynamics (trajectory of the sport, league management, league competition, regulatory environment) and micro dynamics specific to the asset (management team, brand power and digital presence, fan/sponsor loyalty, local market dynamics and real estate opportunities)."

They will have assessed all these factors in EFC. If they write the check, it's a powerful endorsement of the club's future.

They've invested in the following clubs. Can't tell if they have a majority holding.

Those clubs so far:

Estoril Praia - June 2019

2019-20 season. Liga Portugal 2 season cancelled after 24 games (out of 34 games) with Estoril in 4th place.

2020-21 season - Won Liga Portugal 2 title. Automatic promotion to Portugal Liga.

2021-22 season - Finished in 9th place.

2022-2023 season - Currently in 14th place (out of 18 clubs) after 18 games.

AD Alcoron - Spanish La Liga

2019-20 season - Finished 10th out of 22 teams in La Liga's Segunda Division.

2020-21 - Finished 17th out of 22 teams in Segunda Division.

2021-22 - Finished bottom of Segunda Division. Demoted to Primera Federación.

2022-23 season - Currently in 1st place in Primera Federación, La Liga's 3rd Division, Group 1 after 22 of 38 games.

SK Beverin (KVRS Waasland - SK Beveren) - Belgian Football. September 2020.

2020-21 season - Finished 17th of 18 teams. Relegated to League B.

2021-22 season - Finished 3rd of 8 teams.

2022-23 - Currently 2nd place after 21 games.

FC Augsburg - Bundesliga. January 2021.

2021-22 - Finished 14th of 18 teams.

2022-23 - Currently 13th after 19 of 34 games.

They might also be into Danish Football Club Brondby, but I got tired of looking. Reported they made an offer last year.

I so hope this brings stability and the beginning of a new Kenwrightless era.

If they only take a quarter at this point, it's for one of two reasons -- either that's all Moshiri will sell them right now, or they want to make sure of the value (like staying in the Premier League) before committing to the majority share they've always taken in other investments.

What interests me about these guys is their focus on football / sport as a business.

That's not Moshiri. He can do the property but he hands over the sporting side. These people know how to deal with the stuff Moshiri has a blind spot to.

was playing there - but sad that things are as they are, if we were to be currently an investment "on test". The whole world and everything in it is becoming commodified.

I never wanted the big money, old-fashioned as it may be, but if the dough is to be involved it would be nice for a football fan as a pure buyer to step in as opposed to opportunist investors.

The passion buyer thing has certainly worked for Wrexham and their fans, but personally I'll be happy if we're bought out by people who actually know what they're doing.

I remember years ago during the Johnson era coming across a Evertonian, who could not understand what was happening to his Club.I told him it was all about about money, rather than Football at Everton now.They was over Thirty years ago and it has never stopped being about money..

So on his podcast, Paul the Esk also says that EFC would issue new shares for MSP so that the money goes into the club and not to Moshiri. But then he says Everton would use it in relation to getting more investment to close the 𧷤M shortfall on the stadium funding. (nb: The Echo seems to be saying different.)

He further claims that the 25% stake for MSP would mean 45,000 new shares issued to give a total of 180,000 shares outstanding. Now if those shares cost MSP 𧴡M, then the current value of EFC (before the new shares) is only 𧷳M.

Also, once the new Everton Stadium at Bramley-Moore Dock is completed, the club should be worth around 𧿘M, a fairly quick potential double-your-money deal for MSP on the cards, taking their 25% stake up to 𧶀M.

Assuming you are right, it still seems a small amount to me when you hear of what other Clubs are potentially going to be going for. Appreciated, it may be reflected by our current League position, which we all hope is temporary.

Again, assuming we go on a run, and are clear at the end of the current Season, would these figures alter or will they be carved in stone?

I have also wondered if this is a clever way, by Moshiri – and he can't have made his millions and billions by being the Iranian version of Stan Laurel – to force a boardroom shuffle and see the present incumbents scurrying off, or resigning, like rats from a sinking ship… but in this case, the ship is being re-floated.

I found the thread that I posted the Company House info on two weeks ago.

Link

Post #34

Oh, I see you looked it up yourself.

Could common ownership be a problem when we meet one of those teams in the Champions League?

Football is really in a disgusting state with the whole game dominated and corrupted by a small cabal of players and agents. And we, the massive support and their face to the public?

We're customers who are to be treated with absolute contempt. The people who run the club are, unlike the top managers of well-run companies, unqualified chancers like our owner and board. And we're relegation candidates, and we sell out tickets for every game! It really is bizarre.

I know that football was such an important part of what was once working class life. The game has changed beyond recognition and beyond parody and yet we are unchanged really. The chancers and parasites come and go much enrichened by their short tenure and yet we are constant.

After watching the Glazers and Fenway, Gillett & Hicks etc, I am not too sure their involvement would be positive to our future.

Moshiri is just trying to limit his losses before he jumps ship. I am very wary of any US investment as they have no love of soccer. It will be purely business, ie, whatever they can make out of our carcass.

I get the sentiment but what owners are good? Man City's seemed it until 2 days ago. Abramovich until political risk pulled the rug out from under him – and let's be honest, that could happen at Newcastle at any point.

You get cheap-skates like Ashley, conmen like Kenwright, fools like Risdale's group at Leeds. On the outside, Spurs and West Ham Utd seem well run but tell that to their fans.

You've got Pozzo's, the Belgium nutter who ruined Charlton, the middle Eastern crooks at Portsmouth. Mafioso Berlusconi in Italy or corrupt Agnelli. Honestly, I can't think of a “good owner”!!

I think money has been an issue since the earliest days as Sam Hoare and Julian Fellowes showed in the drama about Darwen FC when they started secretly bringing in paid Scottish professionals disguised as factory workers. Accrington FC went bust in the 19th century then along came Accrington Stanley bankrupt in the '60s. The aforementioned Darwen went bust early on too.

As far as showing contempt for fans… remember the Ibrox disaster, Bradford fire or Hillsborough? Fans caged like animals in derelict or wooden pens not fit for purpose? Again this is something that's always been an issue.

And at Everton, while we may not like the fare served or the restricted views, we have some of the cheapest tickets in the Premier League. So yes, plenty of reason for gripes — but money problems, bad owners and poor treatment of fans are not new.

Halewood 'near' Liverpool? It's L26 and just across the road from Woolton and Hunts Cross.

Yes, technically it is Knowsley in terms of council, but it's Liverpool to me. Just like Huyton, Kirkby and Bootle, which is in Sefton, so technically is also 'near' Liverpool.

I'm a big promoter of Liverpool being a city region. Just like London and Manchester have done to great success. I'm not a fan of ruling a place out of the city because of some imaginary council boundary that we don't see when we cross a road.

It's always an interesting debate. In terms of 'passport', we would be ruling out our very own Peter Reid and Leighton Baines. On their side, Stevie G and Spit the Dog would be sent to the colonies. There are probably many more.

Apologies, it always makes me think. One city, one region, one culture.

As I said, I thought I'd come off-topic. Thank you Don for sending me off on one in these early hours!!!

"... a proposal for them to purchase shares equivalent to a quarter of those outstanding"

That could mean an additional shares issue rather than 'purchase 25% of the existing shares'.

"He further claims that the 25% stake for MSP would mean 45,000 new shares issued to give a total of 180,000 shares outstanding"

45,000 is 33% of the existing shares, not 25%.

By my calculations Moshiri would still own 75.2% of the shares, keeping him in control of the stadium company.

OK, I see what he's done. Taken a 25% stake in the company as the basis of the calculation, rather than 25% of existing shares.

It's confusing that it is reported both ways, but Moshiri's shareholding would only be 70.5% if MPS have a 25% stake.

Fingers crossed that there is more good news coming out on this front.

Eric, it looks like you were equally thrown by the way this has been reported. Either way, the figures (being so low for a large chunk of the club) indicate that we're one step away from seeing a different kind of banner at Goodison: “Closing Down Sale, Everything Must Go!!”

So either the numbers are wrong or Moshiri is desperate.

It's not even that there are two conflicting reports, it's the same report that leads to the two opposite interpretations.

That's a very good assessment of modern-day football, mate. The greed of the beast kills everything. Although it's hard to believe that this could happen to the world game, I do believe that, if football carries on the way it's going, then it's going to one day face the same inevitable outcome.

Hearing that the stadium is now a separate entity from the club, fills me with dread and fear. I just hope my thoughts are just unfounded paranoia but, with Bill Kenwright a part of the inner circle, my fears are not going to go away anytime soon.

Moshiri is now appearing to look like KEIOC during the Kirkby enquiry. I read they played dumb when there was nothing stupid about them. The difference being is that the people of KEIOC had Everton's best interests at heart.

If Moshiri is like Kenwright, then looking after Numero Uno will be his only objective. Tell enough lies and, one day, people will stop believing anything you say; swim with the sharks and, one day, you will be eaten alive.

I never thought I'd say this, but be careful, William.

Apologies again, for missing your post on the other thread, which was a week ahead of me sticking my head in the same information trough at Companies House!

We reached pretty much the same conclusions re the subsidiaries, the accounts, the directors, the shenanigans... Where I would take a different view is Moshiri's ownership of the 1 (or is it 2?) shares in the Holding company — I believe it remains a 100% wholly owned subsidiary of EFC Co Ltd.

At incorporation of the Finance Company (in 2018), EFC Co Ltd were originally listed as the Relevant Legal Entity (ie, owner).

In 2021, the Finance Company changed its name to the Stadium Development Holding Company, but there is nothing I can see filed at Companies House under the Holding Company that removes EFC Co Ltd from its role as RLE.

So I think the Holding Company is still a 100% wholly owned subsidiary of EFC Co Ltd.

If true, then although the Stadium Development Company was made separate and EFC Co Ltd was removed as the RLE in (direct) control, it is now 100% held by the Holding Company, which is in turn 100% held by EFC Co Ltd!!!

Bottom line: ownership of the new stadium remains under the (indirect?) control of EFC Co Ltd, through the Holding Company.

Which begs the question: why make the Development Company a sub of a sub? What did that achieve if EFC Co Ltd still 100% control and own the new Everton Stadium at Bramley-Moore Dock?

Why make a sub, a sub? That's the worrying bit now then! (For me)

Maybe Paul the Esk has missed the separation of the Stadium Development from Everton FC like the rest of us, except Eric.

I go on the basis that a share is a loan and the issue of new shares is a loan funded by 𧴣million from MSP, with Director representation and probably an agreement. It has been reported that the stadium is to be funded from financial sources other than the Club.

But having said all that, shares can be complicated.

Kieran#115

That timescale is normal for such case in the UK.

I'm just amazed that anyone who endured the Southampton game would ever want to watch another – never mind buy into the living nightmare otherwise known as Everton FC.

I wonder what the Uzbek puppeteer's plan really is?

Hopefully Usmanov is really out of the picture, as surely these guys will have undertaken their due diligence properly?

With what's happening with City's finances, we can't afford to have his podgy trotters still about.

Food banks outside Anfield while Salah gets ٟ.4million a month.

The working man's game, ladies and gentlemen.

“Be careful, William.”

Tony, mind your own business. Come on, sharks – surely you can smell his blood, there's enough of him!!

Mike Gaynes who would know a bit more about these MSP guys than most of us reckons they have the money to buy the club should they desire to do so. but if James Flynn is correct a partner in MSP is Jahm Najafi who has invested in 4 football clubs in the last few years and none have been that successful. James does point out that he doesnt know if they bought all these clubs or just had part control. Also investing in the Premier league is in a different stratosphere to where they have previously invested.

Now you have to compete with nation states that now are starting to control the Premier League, and with both Man Utd and Liverpool soon to change ownership and the likelyhood that both are likely to be owned by Qatari or Saudi states then its getting to be very difficult for normal clubs to compete.

With more clubs being owned by Middle East countries or American owners my worry is just like the NFL there will be league games played outside this country. I also believe that the top clubs wont want to be part of any future TV deals, as they can make more money selling their own games to fans and probably a lot cheaper than Sky charge.

"Shares is Shares, Loans is Loans, and ne're the twain shall meet." – Bob Cratshit.

I think you're talking utter crap. Again.

I've always found shares to be remarkably simple, both in concept and execution.

Not being conversant with corporate structure and Companies House reports I was hoping from my previous post on the other thread that someone could chip in.

I didn't see anything regarding RLE in those reports, only Person with Significant Control which seemed to me to have been taken away from the Club and vested in a body owning 75%+ of the shares, which I took to be Moshiri.

Valencia: Former La Liga winners and Champions League finalists in turmoil

In the first investment book I ever read, a share was described as a loan by the owner to the company. The company is a separate entity from the owner of the share and those that hold positions in the company are paid as PAYE employers. The owner of the share can be awarded a dividend on his shares passed at an AGM. It could be described as interest.

You can tell your mate Bob Cratshit that shares and loans are more complicated than he thinks.

Probably will be 'monitored' once again when you find your argument is under pressure. I will be back.

You loss the arguement anyway when you resort to abuse..

Thank for your reply

Apart from the winning of trophies, Valencia's misadventures has more than a passing resemblance to our club.

The team won the Copa del Rey, defeating Barcelona in a thrilling final, and finished fourth in La Liga - but Lim reacted by parting company with manager Marcelino and director of football Mateu Alemany following disagreements over transfer policy.

"That was crucial towards the perception that Lim doesn't really care about the club's fate," says Polit. "Especially when you also consider his open conflict with the Valencian government and city hall, no investment in signings, repeatedly selling the team's best players for relatively low fees, a careless attitude towards the club's history, disrespecting the fans… the list could go on and on."

The managerial revolving door has continued to spin since Marcelino's departure, with his successors Javi Gracia, Albert Celades and Jose Bordalas all heading out after one season.

- A Christmas Carol.

Loans and shares are very different.

If you and a friend or partner buy say a property and you each put up half the investment, then you are the two shareholders of the investment.

If you borrow money to buy some extra property, you are still the two shareholders. The bank has no claim on your property unless you default on the loan.

If you really do know anything about investing then you should beware of companies that are highly leveraged, that is companies where the borrowed money is a large fraction of the net worth of the company.

These words exits for a reason: as labels to specific concepts. They are not interchangeable, They don't mean the same thing.

The huge problem with the internet is it allows some people who seem to have a difficult grasp on reality to spout forth endlessly.

Jerome, what about The Flat Earth Society? I hear they are pretty popular these days. Perhaps they have a website you could frequent?

Dealing in shares is simple... care to advise me?

I was thinking about when a company issue shares right. Your shares lose value as they issue X amount to raise capital.

"Buy low, sell high."

Man... he's on the ball today!

Oh... did you just add the send part? Yes, new shares issued can dilute the value of existing shares. Unless the value of the company also increases.

Gosh… you're right; it is more complicated than I thought.

Just been speaking to Bob and he sends his regards.

This scenario with possibly separating the Stadium from the club worries me.

Have you watched the film 'The Big Short ' It shows dealing in shares is far from straight-forward. Markets can be engineered to benefit the money people.

Anyway, I will look to buy low and sell high, gotta go 'cos Bob is calling again.

And let's make special note that Michael Lewis's main thesis is that the left hand did not know what the right hand was doing due to some Glass-Steagall structures in place for proper governance at the investment banks in mortgage meltdown. That is simply not credible – the risk management desks had information.

Brian #163, Najafi and Moorad are partners in MSP, not to be confused with MSF (Médecins Sans Frontières) or MSG (Madison Square Garden, Chinese food).

MSP is partnered with David Blitzer in Bolt Ventures, which is the recent buyer or part-buyer of the four European clubs. Separately, Blitzer owns a piece of Crystal Palace.

It's all one big pile. Of what, exactly, we will find out in due time.

"Uh, Waitress, maybe Ranch would better dressing and can you call a cab for my friend?"

Is Moshiri worried we may go down and never get any investment? Wouldn't Moshiri get a better deal in the summer if we stayed up?

Are investors just waiting to see if Moshiri is willing to fund the stadium himself, then come in and invest without the risk? Or waiting for it to go tits up and buy us on the cheap?

If the stadium was built and our Premier Leauge status confirmed, surely at this price we are ripe for investment.

Is it the connection with Usmanov that's putting people off us? You have teams like Leeds, Wolves, Nottm Forest etc spending more than 𧴡M in the transfer window. It seems like a drop in the ocean to me.

The banks knew CDOs and the tranched up products were oversubscribed which led to paperwork abuses (ahem) at MERS – the mortgage factory Lewis went the way of a Wahington Beltway reporter who did not want to lose their supply of exclusive material.

More countries should have done what Iceland did.

I was just describing a share as a loan figuratively, so as to explain what was happening in the case of the MSP 𧴡 million, IMO, (not 𧴣 million as I posted incorrectly previouly). Wish I hadn't now. Apologies to Micheal or anyone else it caused grief to.

Also, I apologise, Micheal for any catty response I made. I have a son suffering from a head injury this past five weeks, being staying in Hotels on and off close to him.

What could possibly go wrong?

This happens day-in & day-out with 1000s of multi million US$ investments in private companies. Standard practice... including the use of offshore centres for legitimate reasons; there are many ways to skin a cat.

Try to explain it simply and then watch out for the so-called experts, still holding their BT share certificate.

Sorry to hear about your son — that must be a real worry. Sounds like a protracted recovery too so it must be hard on you and the family?

No problem with the catty responses – I love cats. I'm tempted to advise you, though, to focus all the energy you can on him and not bother too much about the twaddle posted on here… but that will probably be taken the wrong way and used against me.

Funny, I nearly corrected your 𧴣M number but thought... Nar... so well done for not only spotting that but correcting it yourself. See, I'm all for real news and fact-checking!

In the meantime keep posting. It will take your mind off it.

Whatever is posted on here is, figuratively speaking, tomorrow's fish and chip paper.

Your son's health is not. It is vital. Very best wishes to him, and to you and your family.

Hope your boy makes a full and speedy recovery.

To all ToffeeWebbers - especially those who may also be facing health challenges - I hope all goes well for you. Visiting this site (especially during the past couple of years) has been a great help to me - long may your contributions (agreed with or not) continue. Michael & Lyndon thanks for all you do.

Thank you Micheal, Neill , Brent ,Tony and Tony, Jay,Peter and Brendan.Back two days, flying back to Glasgow tomorrow to join my son to meet the Doctor to see the path forward.Hit on the back on the head by someone else's Surf Board.One inch cut that was glued. Looks like a slow recovery at this stage.I knew absolutely nothing about concussion before this.He was flying high, Masters and two month into his dream job.But such is life.

I hope he has a full recovery. I had a head injury last year. Couldn't do much (no driving, work, seizures, blackouts) broken bones. It was a slow frustrating process but thankfully by the summer I was back to normal.

Each patient is different but I hope your son recovers very soon.

Would their close connection with Blitzer and his part ownership of Palace cause a conflict of interest which the Premier League might not be too happy about?

And likewise with MSP ownership of those four teams, should we play them in the Champions League, or Uefa Cup?

New European Super League

Kieran, really reassuring hearing from someone who went through it. Thank you. Hope you are well.

Thanks, Peter, for your prayers.

Jamie Carragher has been banned from Everton by the hierarchy for correctly stating that Everton are the worst ran club in the league.Source: Watched Toffee

Jerome, I can only echo what fellow ToffeeWebbers have posted, best wishes to you and your son and hopefully he gets back to full health.