Firstly this supports the club's claim that significant amounts of borrowing are related to the new stadium. So this narrative helps us.
However I think the timeline is wrong. My understanding is:
- Moshiri didn't "ramp up borrowing" to pay for high profile players. He invested money to fund player transfers (e.g. the 2017 and 2018 splurges and also getting Ancelotti and Rodrigues) but that wasn't being borrowed. They were owners loans have since been converted into equity such that new owners won't owe Moshiri anything. (And whether Moshiri owes Usmanov anything, we don't know but that is nowhere near the EFC books).
- He also invested money in the new stadium. Our cash flow problem was due to our income sources (from sponsorship) drying up, not extra borrowing costs.
- In addition to the sanctions, and in fact preceding this, Moshiri had already decided to reduce his financial commitment. (We hired Benitez June 2021 and trimmed the squad costs significantly that summer. Russia invades Ukraine Feb 2022. Seems to me Moshiri had had enough and just wanted Rafa to tied us over until the new stadium, at which point he might sell up for a decent return. Once the USM money stopped, he decided he wasn't willing/able to cover it with further equity injections).
- Given the (a) lack of sponsorship money; and (b) lack of owner injected capital we now have a major cash flow problem, which has seen us "ramp up borrowing" But that borrowing is not for high profile players (look at our net spend) it's for completion of the stadium.
It's not as though Moshiri went out, borrowed loads of money, spent it on players and a stadium, and now we can't pay for it. The current spike in borrowing is as much due to the delay in having new owners as it is big spending on players.
Sorry for posting more woe , and its behind a paywall
I've tried to copy and paste
Miami-based 777 held talks with private markets investor Blue Owl Capital Inc.about arranging a £360 million ($452 million) loan tied to the club’s new stadium, said the people, who asked to not be identified because the details aren’t public.
777’s months-long pursuit of the Liverpool-based club hinges on repaying a £158 million loan to a group of investors led by MSP Sports Capital, a rival sports investor. MSP’s loan is due to be paid on April 15. If the loan isn’t repaid, MSP could take ownership of Everton, according to the people.
A deal with Blue Owl would help 777 repay MSP, though the people cautioned that a deal with Blue Owl is currently unlikely and discussions could end without an agreement.
New York-based MSP was originally in talksto make a direct investment into Everton last year, but withdrew after opposition from Rights and Media Funding Limited, one of Everton’s existing lenders.
It is unclear whether MSP will enforce the conditions of the loan if it is not repaid. Earlier this week, 777 asked for more time to complete the takeover and pushed back the target date to the end of May.
Representatives for 777, Blue Owl, and Everton declined to comment. MSP did not respond to requests for comment.
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Everton has become heavily indebted after its current owner, Farhad Moshiri, ramped up borrowing to pay for high-profile players and build a state-of-the-art stadium in Liverpool’s Bramley Docks.
Since agreeing to take over Everton last Sept., 777 has been funding the club’s day-to-day financial needs, including keeping construction going at the new stadium. It has loaned Everton over $100 million to keep the club running, according to people familiar with the matter.
The Premier League said they were ‘minded to’ approve 777’s takeover last month, but added a number of conditions, including the investment firm’s ability to repay various loans.
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