Everton stadium: ‘Genuine’ concern debt will wipe out all benefits after ‘enormous’ cost increase
Everton may see all of the financial benefits brought about by the completion of the new stadium wiped out by significant debts, fears The Esk.
In his analysis of the Everton Stadium Development Ltd.’s [ESDL] accounts (up to summer 2023) on his website (12 April) the Toffees blogger outlined concerns that “enormous” increases in construction costs and a lack of long-term debt arrangements at a time when interest rates were low will negate the boost Bramley Moore Dock would otherwise provide.
According to The Esk the amount owed by ESDL, including to its parent company Everton Football Club Ltd., as well as tax, and to trade creditors totals £539.1million, while construction company Laing O’Rourke were the main debtor thanks to advance payments made to them of £69.9m.
Also owed is the now-£158m loan to MSP Sports Capital, which the repayment deadline for is Monday (15 April) and currently sees 777 Partners seeking an extension or a huge last-minute loan of their own to deal with.
The Esk wrote: “I am genuinely concerned that going forwards the amount of debt the stadium and the club has to bear as a result of the enormous increase in construction costs and the failure to secure long term debt when interest rates were at historic lows will remove much, if not all of the financial benefits of a new stadium.”
He also believes it is clear, based on the club’s accounts that the stadium has not yet been fully funded, and that the situation now rests entirely on a resolution to the ownership issue – Everton have told Goodison News there has been stadium funding since the accounts.
Bramley Moore Dock ground at risk of no benefit to Everton?
Simply having a gleaming new stadium with an increased capacity should be some boost in itself to the fans and potentially the players, for all it will be a wrench to leave the club’s historic home at Goodison Park.
But the financial drain that the project has been on Everton and the associated issues that have come with it, including the disputed interest payments, mean it needs to truly be worth it once completed (scheduled December 2024) and the team starts playing in it (start of 2025/26 season).
The various issues that have befallen the Toffees and Farhad Moshiri since the project was embarked upon have changed the landscape significantly, and it seems to be on the brink of a huge overhaul as the takeover stand-off comes to a head.
The financial situation looks to only growing more precarious as 777 bankroll the club but appear unable to get their ownership bid over the line, with millions more in loans stacking up that will have to be repaid eventually.
So if Everton finally limp into their new home creaking under the weight of huge debts as a result of the past few years it will hardly be the grand new era that was once hoped for, even if the increased revenue over the long-term will be boosted compared to Goodison.
It may be that MSP, who can take majority control if their loan isn’t repaid by Monday, step in and provide a long-sought answer to this situation, but when the stadium has been seen as the promised land down the line this latest prediction isn’t a happy one.
In other Everton news, the club may take legal action against the Premier League after official documents emerged.
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