Everton land funding deal with Chinese bank

Wednesday 5 July 2017  72 Comments  [Jump to last]
Everton have agreed a £60m credit facility with Industrial and Commercial Bank of China that could open up further ties with the market in that country.

The deal with the world's biggest bank that covers the next three years provides a boost to the club's transfer war chest and other operations.

“There are a number of reasons we're delighted to reach this agreement with Everton," Jothann Durnall, relationship manager at ICBC London, said of the arrangement.

“Not only is it our first partnership with a UK football club, but it's exciting for us to partner with such an ambitious club. We're all looking forward to seeing the facility we've agreed playing a part in the club's future successes.”

Akin to a massive overdraft, the facility provides funds for Everton to use for transfers or day-to-day activities. As such, it is a more effective method of borrowing money than the annual loans that the club was taking out with controversial off-shore entities in the British Virgin Islands that recently came under the microscope of Parliamentary oversight and the Premier League's own watchdogs.  


Reader Comments (72)

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Phil Malone Jnr
1 Posted 05/07/2017 at 21:58:16
How many deals have been struck in the off season? Does anyone at the club sleep?
Mike Berry
2 Posted 05/07/2017 at 22:04:10
What a difference Mr Moshiri has made to this club in such a short time.

We are financially secure, are building an excellent squad, have a new ground in the pipeline, and now a £60m credit facility "should" we need it.

Fantastic to see the club run on these lines and with business brains and foresight.

Lev Vellene
3 Posted 05/07/2017 at 22:11:41
"... in that country". That sounds good! Maybe?

Are they truly an independent bank, or will we have to cow-tow to hidden "official" Chinese approval/disapproval for anything beyond a reported £60m credit in China?

No, I don't trust dictatorship-allowed companies. Sorry, just can't! But then, how much can we want for £60m from China??? Outside of China, what cost is your soul at? ;D

" ...a more effective method of borrowing money than the annual loans that the club was taking out with controversial off-shore entities in the British Virgin Islands that recently came under the microscope of Parliamentary oversight and the Premier League's own watchdogs. "

Is this good? Are we avoiding that microscope, or actually playing clean? I hope for the latter!

John Otway
4 Posted 05/07/2017 at 22:13:52
Anyone seen Shylock Green or is he is focused on sorting out the BHS pension scheme and his daughter's love life!!
Mike Green
5 Posted 05/07/2017 at 22:17:08
Agreed Mike (#2) and the tone smacks of a bank that's very happy to lend us money because they know we've already got a lot of it. I'm becoming more and more convinced Usmanov is in the shadows you know.
Neil Wood
6 Posted 05/07/2017 at 22:32:38
Mike, I second that. I can see Usmanov coming in and with it further recruits. I think the master plan is stadium, global brand and domination of English football. It's very achievable with both on board. Whilst I know it's still just a pipe dream at the moment it does feel like our time is coming.

Colin, I like the odds!! Try a cheeky tenner on Everton to win league and Rooney top Premier League scorer - £10 pays just shy of £100k!!!

Gordon White
7 Posted 05/07/2017 at 22:37:08
Sounds like good business sense to me. IMHO this is more about relationship's and building contacts and markets. It's a route. A means to an end. We have a billionaire owner. We could end up spending almost double this in this transfer window. I'm not sure Everton are a club in desperate need of £60 million. But the richest hardly ever use their own money.

There is an analogy of sorts with the potential move for Rooney. Apart from the obvious skills and experience he could bring, he is a very marketable commodity. It's one of the reasons why Real Madrid have been happy to overpay for players for so long.

Barry Lightfoot
8 Posted 05/07/2017 at 22:38:50
And here's me thinking Farhad had cleared the debt and now we'll have more. Marvellous. Am I missing something.
Dan Davies
9 Posted 05/07/2017 at 22:48:34
Money to money, as they say. Times are definitely changing at Everton FC. COYBB.
Len Hawkins
10 Posted 05/07/2017 at 22:51:49
Don't forget if a quick loan is needed Rooney could always chip in a few £million too. But things really must be building up steam if people want to plough their Rice picking money into Everton.
Thomas Lennon
11 Posted 05/07/2017 at 22:59:27
I wonder does this count as corporate sponsorship as a facility to borrow from a named and business presumably in need of a higher profile amounts to the same except they will be charging for their sponsorship rather than paying?

Another imaginative deal made. Fortza Everton.

Micky Norman
13 Posted 05/07/2017 at 23:24:04
We won't be in hock to any dictatorship any more than the rest of the world's biggest businesses who would love to have a similar overdraft facility if they don't already have one. It shows that the world's biggest bank trusts in the viability of the project and they have confidence in our backers.

If we dip into the available funds it can be paid back easily should it be called in, but it wouldn't have to be. Moshiri is using his financial nous. He's paid off our high interest and decidedly dodgy debts and replaced it with a perfectly transparent loan facility at much lower cost. Immediately saves the club millions to boot.

All clubs would do this if they could.We got stuck with those dodgy debts in the first place because we were skint. All those deals were the business equivalent of a Wonga loan. Moshiri isn't just bankrolling us like the Chelsea/ City sugar daddy rich man's plaything model, he's using his considerable financial intelligence and turning us into a proper business that spends and makes money.

Laurie Hartley
14 Posted 05/07/2017 at 23:24:18
It seems the big boys are looking after our club now. We have come a long way since the day we had to sell Wayne Rooney to keep us afloat.
Phil Walling
15 Posted 05/07/2017 at 23:26:16
All those millions flowing in from the broadcasting fees and the club still needs to borrow. I thought Moshiri had covered that angle himself rather than swapping BVI for China!
Peter Fearon
16 Posted 05/07/2017 at 23:37:03
I still can't get over the fact that we got £8M for Cleverly. Now THAT is doing business!
Chris Gould
18 Posted 05/07/2017 at 23:42:20
We haven't borrowed the money, Phil. It just means that if we suddenly need a large sum of money for whatever reason, then we have £60 million to use immediately.

So, say we spend all of our transfer kitty by the end of July and a shit hot centre forward becomes available on transfer deadline day, we have money available and easily accessible. We wouldn't have to manoeuvre money about or sell to buy.

Mosh may have deep pockets but he probably doesn't have that kind of money just sitting in a bank account. This is a smart move.

Dan Davies
19 Posted 05/07/2017 at 23:44:24
Phil, Moshiri is by trade a chartered accountant, who happens to work for the richest man from Russia.

That alone would suggest that Moshiri is a very astute knowledgeable man who knows what he is doing financial wise.

Have some faith. This man is no fool.

Kieran Kinsella
21 Posted 05/07/2017 at 00:00:51
Barry

It's about leverage. Football is a seasonal business like say a holiday camp or a/c repair. The bulk of the TV cash comes in the summer as does a lot of revenue from season ticket sales. In say January there's not much coming in.

The line of credit gives us the means to access capital when we need it then pay it down when we have more income. Generally businesses don't max out a line of credit and just maintain the debt.

Colin Glassar
22 Posted 06/07/2017 at 00:35:49
The times they are a-changing...
David Ellis
24 Posted 06/07/2017 at 00:40:08
Ok do I guess this means we may keep Lukaku for another year then?
Mike Gaynes
25 Posted 06/07/2017 at 01:05:09
Everybody seems to have a "yen" to join Everton.
Bob Parrington
26 Posted 06/07/2017 at 01:27:09
Good explanation Kieran #21. This is nothing unusual for a business IMO. In fact, it is good business.
Vijay Nair
27 Posted 06/07/2017 at 01:40:56
Mike (25), I think you mean "yuan"?
Yen is the Japanese currency :)
Mike Gaynes
28 Posted 06/07/2017 at 01:45:37
OK, so I was reaching a little...
Paul Kossoff
29 Posted 06/07/2017 at 01:50:17
Vijay, yawn.😋
David Ellis
30 Posted 06/07/2017 at 03:09:35
I hope we renminbi to pay them back!
John Smith
32 Posted 06/07/2017 at 03:55:43
This is standard business practice. Establishing a line of credit. Its much like having a bar tab so that you don't have to pay atm fees to pay for a pint every weekend.
John Smith
33 Posted 06/07/2017 at 04:02:15
The deal gives us £60 mill.

Alex Sandro costs £60 mill.

I'm going to just make a totally random connection and hope this means we will sign him.

Alan J Thompson
35 Posted 06/07/2017 at 05:34:19
Sorry, lads, but this is Everton and you know our luck. Who was the Champions when both World Wars broke out and our noisy neighbours got all English clubs barred from European competition? With that kind of luck, it's overdue that Trump will call for a complete trade embargo with China and Russia over North Korea.

Right, carry on.

Laurie Hartley
37 Posted 06/07/2017 at 07:04:53
Alan (#35) – Phil put you up to that, didn't he?
Liam Reilly
38 Posted 06/07/2017 at 07:09:48
Most businesses have credit facilities but many (like Everton of the past) are either choked by legitimate Banking firms or need to find another way (such as Greens off shore fund) and royally pay through the nose for it.

This is just good business because Moshiri can't be expected to bankroll the club from his own pocket as that would ultimately lead to disaster and administration.

Gary Hazel
39 Posted 06/07/2017 at 07:10:30
Similar to the sponsorship of Finch Farm this is a balancing books exercise to show assets as we are spending on players.

Financial Fair Play is seeing clubs forced to sell players to balance books at below market value; this protects us with assets and could mean more new players or we keep players contracted rather than sell.

Alan J Thompson
40 Posted 06/07/2017 at 07:13:13
Sorry, Laurie. If you know your history, current affairs, retirement, too much time on hands, not going to the ale house today and rain forecast.

"It's just one of those songs."

Tony Abrahams
41 Posted 06/07/2017 at 07:37:57
He's got everyone kidded, that Phil, Laurie. Keeps telling us he's in Cyprus, but I reckon he's in North Korea, making "pies for the president"!!
Ian Jones
43 Posted 06/07/2017 at 07:48:41
I know times have changed and football has become more business orientated, and not always for the good, but such a shame we didn't have the likes of Moshiri and his team around at the start of the Premier League.

Teams like Man Utd and Arsenal recognised the potential of Sky and acted accordingly. We appeared to sit back and not do a lot.

Amit Vithlani
44 Posted 06/07/2017 at 08:00:57
"We haven't borrowed the money" Chris Gould claims.

Yes we have. The Echo's nonsensical piece somehow painted this to be a different way of funding the club to normal bank borrowing, but it is not, and don't be fooled by it.

Moshiri cleared the existing debt with a zero-interest loan. This facility carries interest, so the club will incur some costs. The cost will be lower than those BVI schemes, granted. Further granted, this is an onshore loan funded by a proper bank, not some shadowy shell in the BVI.


But... Ryazantsev (or however he spells his name) said the club now had its own source of funding.

Then again... I think Moshiri has put his hand in his (or Usmanov's) pocket already. I think he provided the funding for Schneiderlin and Lookman, and may also have bridged the net transfer outgoings this summer.

Here is my guess at the overall funding into the club by Moshiri (excludes what was paid to Kenwright and cronies for his 49.9%):

From Last Season:

1. £80-odd million to clear the club's historic debts

2. £30-odd million for the January purchases.

This Summer:

1. Transfer Outgoings – £100-odd million (including agents fees and signing on bonuses) or less if purchases on instalments.

2. Net of Incoming from Deulofeu, Cleverley and McGeady, around £20-odd million or less if sales on instalments.

3. So net £80-odd million difference funded initially by Moshiri and the club's cash (eg, from the new Sportpesa deal, USM sponsorship).

4. £60m of Moshiri funding repaid by new OD, making the club fund a big chunk of this summer's transfers which is then consistent with Ryazantsev's statement

5. Moshiri funds outgoings on remaining transfers, perhaps Giroud, Rooney, Jimenez.

6. Lukaku, Barkley (and maybe Niasse) sold at the right price and right time for the club. OD paid down. Bridging provided by Moshiri for the net transfer outlays above £60m also paid down.

7. If not sold then both OD and bridging remains in place.

8. The Sky money arrives (August?) probably earmarked to cover the ongoing costs (wages etc).

Conclusions:

1. Is the £60m a bank borrowing? Abso-fucking-lutely. It is not some magical form of funding that the Echo made it out to be.

2. Has Moshiri put his hand in his pocket? Yes. We have spent way more than £60m on net transfers.

3. Is this £60m OD a bad thing? Not in my opinion. Moshiri is taking a balanced approach (remembering he owns 49.9%). We are spending beyond our means because he is providing the difference directly or through arranging deals such as USM.

4. What does it say to me about how the club is run? It says these guys are fucking smart. They did not let off-the-field matters influence the on the field strategy. Koeman has got who he wanted. Lukaku and Barkley have not been able to hold the club to ransom and disrupt our summer.

5. Caveat: ICBC is a humongous bank, but it is a bank and this is a large amount of debt which we will be able to carry, whilst spending freely, so long as Farhad and his mates stick around. Moshiri had better not fall out of love with us anytime soon.

Harry Wallace
45 Posted 06/07/2017 at 08:03:24
Not only are we being run better on it we are being better run off it too. Probably more so. About time I say.
Si Ord
46 Posted 06/07/2017 at 08:10:10
If my maths is right:

£10M for Deulofeu.
£8M for Cleverley,
£85M for Lukaku,
£25M for Barkley on one side...

And up front: £24M for Klaassen,
£25M Pickford,
£25MKeane,
£7M for Onyekuru,
£5M for Sandro..

Then, not saying I agree with these, but £13M a year for Rooney's wages over 2 years...and £20M for Giroud, we will have still only spent £4 million.

We will have some small change to come from McGeady etc and I think I'm right we spent £22 million net last year. In which case we've still got a way to go.

This is just a facility to do good business quickly at the right time. It's a very exciting time to be a blue after so many years in the trophy wilderness.

Mahatma Moshiri!

David Graves
47 Posted 06/07/2017 at 08:12:52
Good post, Amit.
John Keating
48 Posted 06/07/2017 at 08:19:13
I am made up with what is happening just now – apart from the crap shirt I'm wearing on holiday!

Great to see real businessmen actually running the club and as a good PR deal, leaving Cleggy to front it all. Thanks Mr Moshiri. Pity you weren't around 20 wasted years ago!!

Adam Carey
49 Posted 06/07/2017 at 09:00:37
Is this what Man City fans were feeling back in 2008-09, when everything started to change drastically for them...?

We have smart people running the club, commercial deals being signed weekly, and I had to laugh at Radio 2's Drivetime show yesterday who were jokingly finishing off any transfer rumour segment with "and Everton interested in another player today".

Len Hawkins
50 Posted 06/07/2017 at 09:09:06
John (#48), Do you buy those 3 for £10 Slazenger shirts too from 10 Bellies Ashleys store?
Steven Jones
51 Posted 06/07/2017 at 09:18:23
Yes Amit – good synopsis. Key outcome is momentum and leverage.

Someone mentioned on a board we have a nice combination of a strategy to get change early, get youth for no risk, asset build over time and add cutting edge, strength, aggressive winning mentality, fitness, pace and goals.

The recruitment team has a nice combination:

Mr Walsh – knowledge, contacts and proven process for reaching out early to many many targets that fit the criteria so we are not under pressure.

Koeman – Reputation, approachable and reaches out as well. provides strong clear leadership.

Kenwright – Provides the heritage, the patter and it would seem when the finance is available can cut a deal real quick.

Moshiri – has his contacts and network - has credibility as a football man and a smart finance operator with huge backing of both his own money but also USM AND his pal . very Cleverley leveraging the council, the property drive on the waterfront and his billionaire contacts.

Finch Farm, Coaching and Backroom team – it appears that getting players to finch farm is part if the process and meeting the EFC family has had a real impact on the signings.

This is a very powerful mix which has delivered in droves already and is marching on. Totally nuked the Rom/Ross potential ransom saga and summer soap opera.

John Pickles
52 Posted 06/07/2017 at 09:19:40
So does this mean that our previous source of instant transfer cash, Bill's sofa, has now been officially retired?
Gordon White
53 Posted 06/07/2017 at 09:24:06
Amit 44 good post. Sound. Other than our new financial strength and being linked with exciting players, the other thing that is making me so happy is all the red noses, and the red press getting shitty about our dealings. Whenever they start getting catty – you know we're doing something right. :-)
Dave Lynch
54 Posted 06/07/2017 at 09:24:17
If anything, the goings on at the club over the past 8-10 months has shown how much out of his depth Kenwright was when it came to running the club.
Chris Gould
55 Posted 06/07/2017 at 09:24:47
Amit, nobody has said it's a magical way of funding, but it is more of an overdraft than a loan. If we need some funds quickly then it's available.

Of course we'd have to pay it back but obviously Moshiri feels it makes sense for our business model.

And you obviously agree, so no need to highlight my post in such a disagreeable manner. It isn't magical funding, but it also isn't technically a loan, although I accept that once we use the money then it comes at a cost.

Call it whatever you want, Amit, but have no fears, Mosh is here to stay and clearly knows what he's doing.

Gordon White
56 Posted 06/07/2017 at 09:29:21
David (#54),

Whatever you think about Kenwright, he's a true blue and he promised he would find a decent new owner. I wish we could just cut him some slack and move on. :-)

John Keating
58 Posted 06/07/2017 at 09:33:06
Len 50. No I don't get the 3 for £10 Slazenger shirts but now I've seen the shite my youngest lad bought me I think I will do!

Still I don't mind me and my family spending on this seasons stuff if the people now running it are doing their bit!

Brent Stephens
59 Posted 06/07/2017 at 09:37:05
Amit (#44), another piece from you where I can learn a lot. Thanks. And all that reassures me (though Conclusion 5. is sobering).
Brian Williams
60 Posted 06/07/2017 at 09:48:03
Gordon (#56). Hear, hear.

David (#54). You're right, David, and he would be the first to admit it (in private) BUT he did know what the club needed and he held out until he found exactly what the club needed. He takes far too much stick on here from people who know next to fuck all about him and his business.

It's taken a long time to find our perfect benefactor/major shareholder but with the promise of a new waterfront stadium and a transfer window that's made everybody sit up and take notice I think there should be credit given where credit's due.

I know I'll get all the Kenwright haters on now giving it "What about this; what about that", but just look where we are and where we're soon to be.

Laurie Hartley
61 Posted 06/07/2017 at 10:01:05
Amit (#44) – I love it when accountants don't talk in riddles – thanks. ;)

So we've got a plan then.

Gordon White
62 Posted 06/07/2017 at 10:13:06
Brian #60
Spot on.
Derek Thomas
63 Posted 06/07/2017 at 10:22:12
Neil @6; This is Everton remember, I'd having a tenner on Stoke.
James Ebden
64 Posted 06/07/2017 at 10:40:43
Lukaku agreed with Utd for £75 on BBC sport. Sure some deal with Rooney will be part of that?

Fingers crossed it prompts Chelski to start a bidding war and push price up.

Brian Williams
65 Posted 06/07/2017 at 10:44:13
Not true James.
Brian Williams
66 Posted 06/07/2017 at 10:46:07
Not true that the dea's done I meant. Didn't mean its not true that its on BBC.

Offers been made, Everton have turned it down. No further talks planned at the moment.

James Ebden
67 Posted 06/07/2017 at 10:49:44
Doesn't say it's turned down, says the fee is agreed with the club. Personal terms with Lukaku will be another issue but I'm sure they can afford his greedy demands.

How do you know the club has rejected it? The news has only just broken.

Jack Cross
68 Posted 06/07/2017 at 11:12:10
Deal done with Man Utd for Lukaku. £75 mil has been accepted.
Dave Lynch
69 Posted 06/07/2017 at 11:18:29
Not a Kenwright hater, lads. Just pointing out that he was out of his depth. I think at one stage he thought he could handle the nuts and bolts of running a massive club.

I think it was the pressure that impacted on his health as well.

Glad he has had a part in securing our future; whatever his faults, he can now hold his head up and be proud of what he has finally achieved.

Brian Williams
70 Posted 06/07/2017 at 11:21:55
James. From Moshiri himself via Jim White. The offer of £75m has not been accepted.

Everton made a statement saying "Romelu Lukaku is an Everton player, Wayne Rooney is a Man Utd player, we have offers from other clubs for our players. We have made offers for players of other clubs. No further talks are planned at the moment between Everton and Man Utd."

Tony Williams
71 Posted 06/07/2017 at 11:45:08
Can anyone tell me, where are the Blue Union now?
Dave Abrahams
72 Posted 06/07/2017 at 13:38:45
Gordon (#56), yes never forget that Kenwright is a true Blue, in fact he is the best and greatest Evertonian whoever lived.

Not only – that he has made more money out of Everton than any other fan since 1878... But let's forget all the lies, deceit and false promises – they don't matter. He is one of us...

My fuckin' arse.

Peter Gorman
73 Posted 06/07/2017 at 13:46:42
He may be the best and greatest... but you run him a close second, Dave.
Terry White
75 Posted 06/07/2017 at 14:50:45
Dave (#72), totally unwarrented, unnecessary, and out-of-character.
Dave Abrahams
76 Posted 06/07/2017 at 15:07:43
Tony (#71), more than likely every leading member of The Blue Union are still watching Everton home and away.

Terry (#75), I will continue to write every word as long as people continue to flatter Kenwright.

Terry White
77 Posted 06/07/2017 at 17:39:29
We are all entitled to our opinions, Dave (#76). I have no issue with your feelings about Kenwright, only with the foul and emotive language you use to express them.
Gordon White
78 Posted 06/07/2017 at 19:39:01
Agree Terry (#77). Couldn't agree more. Everyone is entitled to have their opinion and to be heard. After all, that's what a lot of us have fought for in the past. But you can do it without being obnoxious.

There are a number of brilliant posts on this thread. They put their point of view well and if they disagree, it's done with a bit of respect. And generally, people take more notice of what they're saying rather than how they're saying it.

Brian Williams
80 Posted 06/07/2017 at 19:42:24
I rest my case.
Dave Abrahams
81 Posted 06/07/2017 at 20:02:14
Terry (#77) – foul and emotive language? Dear me, Terry, you must have led a very sheltered life.

Gordon (#78)– obnoxious? I have no respect for Kenwright the way he has behaved as chairman of Everton FC.

It seems you don't think Kenwright has looked after his own interests more than he has the welfare of Everton? – I find that very surprising.

Dan Davies
82 Posted 06/07/2017 at 22:43:48
The White Mafia out in force, Dave, if I was you I'd back off they may very well be the same person!

Mark Taylor
83 Posted 07/07/2017 at 02:00:23
Moshiri appears to have decided he wants no part of doing business with Green, so that shows good judgement.

I assume this facility is at a better rate than we have had before via Green (could hardly not be) and is actually quite handy in boosting our negotiating position with people like Lukaku whose bluff can now be called, if absolutely essential.

In the old days, Bill would have just had to drop his trousers...

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