Cozzie wrote: ↑Mon Jan 29, 2024 3:53 pm
We'll likely never end up actually owning it anyway.
Agreed, with the interest on the multiple loans we have on it I think it’ll be bought and rented out to us, and we’ll miss out on all the other possible revenue streams.
I’ve always remained positive, but sadly I think this stadium is becoming our death knell.
The fact is that every single company in the world has some level of debt. But it’s how manageable that debt is that is the key.
How much interest coverage do you have, when does the debt mature and need to be paid off, what is the debt as a proportion of revenue/assets etc. how much is short term/long term. What terms is the debt on?
We will likely have debt on the stadium for decades to come. That’s just a fact. But ensuring that we can refinance the debt into a longer term bond at the cheapest coupon we can is the most important part.
So yes, technically we won’t own the stadium for a very long time, as the banks will likely have a senior secured bond against it. And we may even have several tranches of debt against the stadium. But the increased revenues that it will generate will be ours and give us a much better platform to sustainably increase revenue into the future.
There’s a generation of fans who have never seen us have a good team at the place.
Let’s get away and start afresh in a new environment.
Win, lose or draw the match day experience will be so much better.
It’s at the point now where we pay so much money to watch rubbish every week we should be at least compensated with a better experience at the ground.
Obviously there’s so much uncertainty around everything we don’t know what’s going to happen but having that ground is, for me, the only thing I can look forward to as a fan.
TheRam wrote: ↑Tue Jan 30, 2024 12:23 pm
I’m excited.
Goodison is a miserable experience.
The journey to the ground is miserable.
County road is miserable.
The pubs are miserable.
The whole feeling around the place is miserable .
There’s a generation of fans who have never seen us have a good team at the place.
Let’s get away and start afresh in a new environment.
Win, lose or draw the match day experience will be so much better.
It’s at the point now where we pay so much money to watch rubbish every week we should be at least compensated with a better experience at the ground.
Obviously there’s so much uncertainty around everything we don’t know what’s going to happen but having that ground is, for me, the only thing I can look forward to as a fan.
Actually, when you put it like that you’re very right.
Gary1878 wrote: ↑Tue Jan 30, 2024 11:30 am
The fact is that every single company in the world has some level of debt. But it’s how manageable that debt is that is the key.
How much interest coverage do you have, when does the debt mature and need to be paid off, what is the debt as a proportion of revenue/assets etc. how much is short term/long term. What terms is the debt on?
We will likely have debt on the stadium for decades to come. That’s just a fact. But ensuring that we can refinance the debt into a longer term bond at the cheapest coupon we can is the most important part.
So yes, technically we won’t own the stadium for a very long time, as the banks will likely have a senior secured bond against it. And we may even have several tranches of debt against the stadium. But the increased revenues that it will generate will be ours and give us a much better platform to sustainably increase revenue into the future.
Or in simple terms you don’t own your own house until the mortgage is completely paid off.
Escla wrote: ↑Thu Feb 01, 2024 8:53 am
Or in simple terms you don’t own your own house until the mortgage is completely paid off.
You do own the house though. There's just debt on it.
The stadium will be an asset on our balance sheet with debt as a liability. If we don't pay the terms of the debt the senior lender who has taken the stadium as security can collect on their debt by taken the collateral.
We should be able to re-finance the debt at a lowish rate for a long amortization. Ideally that with the increase in matchday revenue should improve our financial position.
The concern will come if the debt is not on great terms, given our financial position it's possible we won't have a long line of potential lenders at the door and those that are their may charge a higher rate due to the increased risk.
Overall I have concerns still over BMD and it's impact in the short-term (next 5 years). I do think if we can stay in the Prem that long-term we will benefit.
