Articles of Association amended regarding transfer of shares

12/06/2023 21comments  |  Jump to last

The Articles of Association for Everton Stadium Development Ltd have been amended by Special Resolution to allow the transfer of shares to a 'Secured Institution'.

This move would allow for the transfer of shares in Everton Stadium Development Limited to a bank or financial institution should a security or charge be called in.

Effectively, should the club (or the Everton Stadium Development Company as wholly-owned subsidiary) be unable to meet loan obligations, where shares in the company had been offered as security, then the financial institution or nominee would be able to transfer the shares to their name. 

It is thought to be a move that would protect the position of a prospective lender, which in this case is expected to be MSP Sports Capital, and one that would almost certainly be a caveat to a deal being agreed for additional funding of the new stadium. 


Reader Comments (21)

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James Flynn
1 Posted 12/06/2023 at 16:59:49
This indicates we're getting closer to a deal?
Jerome Shields
2 Posted 12/06/2023 at 19:22:30
Hopefully more accountability becomes the order of the day.
Dupont Koo
3 Posted 13/06/2023 at 00:26:58
Good progress. That means the shares have officially been pledged as a collateral to the fund that MSP will pour in.

Paul Kossoff
4 Posted 13/06/2023 at 14:42:02
Another move that proves our whole club and the stadium are on very shaky ground.

Moshiri and Kenwright really have brought Everton to it's knees. How are you seeing this as good news? We are a fire sale waiting to happen.

Clive Rogers
5 Posted 13/06/2023 at 15:12:03
You are right, Paul. Everything seems very dodgy. Could this lead to someone other than the club owning the ground?
Brent Stephens
6 Posted 13/06/2023 at 15:15:20
Paul #4, it's good news given our current position. What do you want?

And what exactly is dodgy about it, Clive? What is it that you actually know?

Gary Hughes
7 Posted 13/06/2023 at 15:23:35
I would love to know what this means either way.

It doesn't sound good but maybe Paul the Esk would be the man to shed more light on what it means for the club in general.

Paul Kossoff
8 Posted 13/06/2023 at 15:28:20
Clive, I fear for our club. If someone told me Everton wouldn't be here in 12 months time, I wouldn't discount it. Liverpool near went out of business a few years ago and had to bring in help to save them.

We need divine intervention to save us and it won't happen by taking out bridging loans and borrowing more money. Moshiri is an accountant, you would think he was Coco the fucking clown seeing as what he's done to us.

'A dysfunctional situation that could not continue'

Jamie Crowley
9 Posted 13/06/2023 at 15:30:26
This isn't dodgy in the least.

We're financially perilous presently. MSP is coming in and saying, "If Everton fail financially in any way, we get the shares in the company."

It protects MSP, and from their viewpoint is the insurance policy to ensure their investment.

I agree with Brent, this is nothing but good news. It's savvy and intelligent on MSP's part.

It's clear they are coming in hot, and they want financial backing of some sort on their massive investment. What's wrong with that?

Will Mabon
10 Posted 13/06/2023 at 15:36:20
Nothing wrong in principle. It's the fine details that matter.
Paul Kossoff
11 Posted 13/06/2023 at 15:43:37
Jamie, we are massively in debt, no one is clearing that. Moshiri just took out a bridging loan to pay off a debt!

We may end up not owning our stadium and having to rent it off God knows who. We are still deep in the shit, and the over-spending matter still to come, where exactly is the good news?

Jamie Crowley
12 Posted 13/06/2023 at 15:58:12
Paul -

You're correct in all you say. We're a financial mess, no secret there.

So, MSP knowing this, simply wants collateral on their investment. We have no money and no assets to cover their investment other than the new stadium. So we collateralize the deal with the stadium.

If we don't, MSP walk. And then where would we be?? In an absolute broke-ass world of shit.

That's why this is good news. If you need investment, and the only way to get that investment is to collateralize it with the massive cathedral you're building, you gotta do that. If we go broke, MSP get the stadium. But if we survive, there's only the collateralization underpinning the thing with no rights to said collateralization to anyone.

What option do we have? And we simply must get MSP involved. If they want the stadium as collateral, you do it to get them in, get their money, and start the financial rebuilding process.

We may end up not owning our stadium and having to rent it off God knows who.

Yes. But then again, with investment, we might come out the other side, own the stadium, and sunny days are ahead. You're focusing on disaster (don't blame you) but really there is no choice whatsoever other than to promise the stadium to the new investors if Everton shit the bed.

What you really need to be fearful of is MSP coming in, and tanking the Club on purpose to obtain the stadium. But I don't think they're that type of organization. They're not dodgy in anything I've read or investigated.

Paul Kossoff
13 Posted 13/06/2023 at 16:12:12
Thanks for that, Jamie, but I still have my paper bag at hand to help with breathing. I still say we are in bigger shit than we are being told and people thinking Kenwright going will solve our problems are wrong.

We need round a billion pounds to come in to finish the stadium and pay off the debts. MSP putting in even a few million won't even paper over the cracks.

Clive Rogers
14 Posted 13/06/2023 at 17:29:11
Brent, #6,

I don't know anything other than what I have read, but this wasn't the initial plan surely.

Moshiri and/or Usmanov we're going to fund the ground. Usmanov has gone and Moshiri, after saying he was prepared to give everything he owns, now seems to want back what he has invested.

He has loaned EFC £700M and total debts are already around £1.2 billion with more to come. This transfer of shares deal seems to be a precursor of debt failure by the club. The club could be paying off debts for decades. Kenwright will probably be the only one to come out of this mess in the black.

Winston Williamson
15 Posted 13/06/2023 at 17:50:26
I thought the loans provided by Moshiri were effectively never to be paid back. In fact, in the past he has turned loans into equity, via a new share issue (I may be wrong on this).

This seems like a similar scenario, but for MSP providing capital as non-owner, with loan likely to be converted to shares in the future, whilst also protecting MSP’s inlay by way of capitalising the stadium in the event of EFC going to the wall.

The debt on paper looks bad, but it is highly unlikely to be called in by Moshiri.

Happy to be corrected

Clive Rogers
16 Posted 13/06/2023 at 18:27:38
Winston, you may be right. Things seem to have changed since Usmanov exited and at this moment in time they are still loans. Time will tell. Moshiri seems to have lost interest in the performance of the team and I think he would get out if he could. Just my opinion.
Paul Kossoff
17 Posted 13/06/2023 at 18:33:56
Clive,I have said for a few years now that someone is intentionally running this club into the ground, why I don't know, maybe someone can say why a business would be driven to ruin and how they would benefit from that.
Kevin Molloy
18 Posted 13/06/2023 at 18:39:43
think the restaurant in Goodfellas. or the shop Davey had in the Sopranos.
Paul Kossoff
19 Posted 13/06/2023 at 18:48:58
Kevin, I've not seen either, did it all end well?🙄
Tony Everan
20 Posted 13/06/2023 at 18:59:02
Paul 17, it’s very easy to think that, especially with the desperate striker situation last summer, culminating in signing Ronnie Corbett to deputise for DCL. Followed on by the unbelievable failure to sign one in January when we were sinking like a stone, facing relegation and existential threat.

Not even a loanee signing, summer or January to back up Lewin. No board could conceivably be that incompetent, or could they ? I think we know the answer to that , the club has been run like Arkwright Stores for donkeys years.

Paul Kossoff
21 Posted 13/06/2023 at 19:07:56
Tony, thank God that I as well as Everton support every single team on the planet at least twice a season and that's when they may play the other utter shite from across the park.😀👮👮👮

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