Can someone answer this?

[A Load of Squit 6,260]

I'm not sure about this but does this mean that he's converted some money he's already loaned them into shares? It's not that they now have £110M to spend on transfers?

https://www.evertonfc.com/news/2456549/owner-affirms-everton-commitment-with-100m-share-deal

Everton Football Club’s Board of Directors can confirm Mr Moshiri has further affirmed his commitment to the Club with a £100m capital injection.

The Club’s owner has acquired a further 33,333 shares in the Club, through Blue Heaven Holdings Limited, taking his shareholding in Everton to 94.1%. This acquisition represents the capitalisation of previous loans made by Mr Moshiri - greatly strengthening the Club’s balance sheet.

[cambridgeshire canary 7,798]

Does seem rather sketchy.. 

[Thirsty Lizard 3,215]

I think that what it means is this.

He's p*ssed £500 million (yes half a billion!) up the wall. And rather than learning from his mistakes he's now throwing another £100 million away. 

I'm sure Everton fans are delighted to have such an ambitious owner. 

[Kenny Foggo 1,194]

Yep Everton fans will be furious he has invested another £100m... boo!

Think they'll be more furious that he has not appointed a sporting director and professionals to run the club, rather than him making daft decisions. 

Committed to building a new stadium...boo indeed.

[Midlands Yellow 4,682]

5 minutes ago, Thirsty Lizard said:

I think that what it means is this.

He's p*ssed £500 million (yes half a billion!) up the wall. And rather than learning from his mistakes he's now throwing another £100 million away. 

I'm sure Everton fans are delighted to have such an ambitious owner. 

Fair points, they’d much sooner have our model and owners I’m sure. 

[Icecream Snow 777]

13 minutes ago, Kenny Foggo said:

Think they'll be more furious that he has not appointed a sporting director and professionals to run the club, rather than him making daft decisions. 

I'm not sure what your point is, that he hasn't replaced sporting director Marcel Brands after sacking him last month?

[shefcanary 2,955]

In short terms this is just an accounting book entry.  He had loaned the club £100m over the past couple of years, which technically the club had to pay him back, as well as pay him interest on the loan.  He has now converted that loan to share capital.  The consequence is that the club no longer have to repay him the money, and also do not have to pay him any interest.  They might have to pay an increased dividend to him should they make profits and start paying dividends although probably the impact would be a reduced dividend paid per share (or dilution of right to share on the success of the club as it is known) without increase of the dividend pot.  

So no new money, although I think the half billion mentioned above will be over £1bn by the time of completion of the new ground as he makes further loans to the club.  Some of that may well cover player dealings.  So expect regular increases in his loan, followed by more book entries as those loans continue to be capitalised into new shares.  In fact, given his commitment statement, no change in funding strategy, so nothing to see here.

Deep pockets, don't you just love other clubs owners! 🤔

[cambridgeshire canary 7,798]

45 minutes ago, Thirsty Lizard said:

I think that what it means is this.

He's p*ssed £500 million (yes half a billion!) up the wall. And rather than learning from his mistakes he's now throwing another £100 million away. 

I'm sure Everton fans are delighted to have such an ambitious owner. 

Sad part is there are quite a few posters on here who would be very happy with having him as our owner just beacause 'well money'

 

Although it is odd how they always seem to ignore clubs ran by billionaires that don't do well..

After all Barnsleys owners are worth 9 billion and where are they headed? Down to League one. The Delia out brigade don't seem to talk about that for some reason..

 

 

Edited January 21, 2022 by cambridgeshire canary

[Newtopia 573]

That is a slippery slope, if he ever wants to extract himself from Everton FC he needs to find someone who will take on a 500M loan or buy him out for that sort of figure.  I am not sure if coverting a loan to equity affects the FFP rules - although they are toothless in the EPL

[Google Bot 3,934]

3 minutes ago, Newtopia said:

That is a slippery slope, if he ever wants to extract himself from Everton FC he needs to find someone who will take on a 500M loan or buy him out for that sort of figure.

I don't think it works like that, As Chelsea are over a billion "in debt" with Roman.. But I read that it can just be converted into shares and then no longer considered a debt.... somehow(!?).

Seems that if you're poor every penny counts, but when you're rich you can make millions disappear when it suits.

I mean, when you see how the Glazers took over at United the whole thing's a joke. It's above me to work out who's being screwed over though.  But someone has to be, unless it's just clubs like us who have no 'guarantor' to secure loans on the clubs name.

When I think back to Ipswich's **** up, and how that affected so many contractors who got paid a pound for every hundred owed or something - there has to exist that backlog for these big clubs too?  i.e. if the bubble was to burst, how far down the line is the damage accumulated?

[TheBaldOne66 768]

1 hour ago, cambridgeshire canary said:

Sad part is there are quite a few posters on here who would be very happy with having him as our owner just beacause 'well money'

 

Although it is odd how they always seem to ignore clubs ran by billionaires that don't do well..

After all Barnsleys owners are worth 9 billion and where are they headed? Down to League one. The Delia out brigade don't seem to talk about that for some reason..

 

 

Is that the League One that the Delia lovers conveniently forget we went to under her ownership? 😎

[Thirsty Lizard 3,215]

15 minutes ago, TheBaldOne66 said:

Is that the League One that the Delia lovers conveniently forget we went to under her ownership? 😎

Very enjoyable season - why would anybody forget it? 

[Thirsty Lizard 3,215]

3 hours ago, Midlands Yellow said:

Fair points, they’d much sooner have our model and owners I’m sure. 

Given that their fans spent much of last Saturday's match chanting "Sack the board" I would imagine that you're correct in this

[C.I.D 358]

53 minutes ago, Thirsty Lizard said:

Very enjoyable season - why would anybody forget it? 

Absolutely TL............who can ever forget the ecstasy of Oli Johnson's late goals against Southend or Chrissy Martin scoring in the dying minutes to beat Leeds 🥳

[Thirsty Lizard 3,215]

29 minutes ago, C.I.D said:

Absolutely TL............who can ever forget the ecstasy of Oli Johnson's late goals against Southend or Chrissy Martin scoring in the dying minutes to beat Leeds 🥳

Not to mention Michael Nelson's overhead kick at Hartlepool. 🙂 

[sgncfc 1,330]

4 hours ago, Newtopia said:

That is a slippery slope, if he ever wants to extract himself from Everton FC he needs to find someone who will take on a 500M loan or buy him out for that sort of figure.  I am not sure if coverting a loan to equity affects the FFP rules - although they are toothless in the EPL

There isn't a loan if he's converted it to shares. It just means his 94% of the club has cost him £500m. You could argue that Everton is worth a lot more than that so he has every chance of getting his money back.

I believe FFP is based on turnover and profit/loss not value so I don't think this will have any impact other than increasing the profit slightly because the club don't have to pay any more interest on £100m. (about £9m a year at current rates for football clubs).

[Badger 2,745]

5 hours ago, Newtopia said:

That is a slippery slope, if he ever wants to extract himself from Everton FC he needs to find someone who will take on a 500M loan or buy him out for that sort of figure.  I am not sure if coverting a loan to equity affects the FFP rules - although they are toothless in the EPL

1. I wouldn't worry too much about Everton's owner. They are building a ground with a capacity of over 50,000 and have a realistic prospect of Champions league football if he learns the lessons of what he has done at the start of his ownership.

2. My understanding is that FFP is based on losses over 3 years (with certain things being deducted - e.g. women's football; academy etc). Converting a loan into equity does not affect the losses, just how they are financed. It could mean that they have reduced interest costs in the following years.