| Evans Investment 20:09 - Mar 4 with 2066 views | Sussex_Blue |
I don't know why I've been thinking about this today, (maybe it's the bothering sinking feeling of watching my club’s slow and painful continued demise), but for some reason, I have.
The East Anglian paper thingy did that exclusive interview with Marcus back in 2019 — which I looked back on. The one where he reassured everyone he had a plan — the interview its self was fairly unremarkable, but there was a line in there in which he said: "I would like to do everything I can 'within my plan' to try and make it succeed.”
I'm not really sure the article really got into real granular detail of ‘within my plan’ at the time, but anyway it confirmed in that interview that the club’s (at that time) £95m debt to him was effectively a personal loss, implying that the £5m odd he puts into the club every year is a loss to him, or maybe to his group of companies I guess.
So, this is what I was thinking about today. As others have pointed out on the face of it — it doesn't seem to make a lot of sense. Why would you sustain that loss each year and let it build up to quite frankly ridiculous levels now — I assume it might have hit £100m plus by this year... So I was thinking on the train if it was my business why would I do that?
The details around the original deal are not easy to find quickly online, but there does seem repeated mention of the interest that Town pay on the debt — between 5.4% and 7% possibly — let's say its in the middle around 6%.
So the club must be paying him something like £6m in annual interest payments on his loan — may be slightly more or less depending on how the original £30m debt, % of ownership, etc were treated, but it leaves me with a gut feeling that his ‘plan’ is something like this.
Stage 1.
Receive an annual £6m in interest payments from the club, lovely jubbly... and the greater the debt next year, the more in interest payments I get.
Stage 2.
Establish the final net financial position of the club at year-end — after player sales, other earnings, etc have been calculated — let's say for argument that player x was sold for 500k and the club still needs £5m of funding.
Stage 3.
Transfer the required £5m into the club to balance the books — which adds to the debt, on which I earn 6% next year — far more interest than I’d get in any bank right now.
Stage 4.
Bank the £1m leftover — maybe pay some tax on it next year if I haven't invested it somewhere else and it stays as cash.
Stage 5.
Tell the manager they need to manage with their existing resources, maybe put some investment into the academy, or a loan player possibly — but I'm still in credit overall.
Stage 6.
Pay myself a wage, or dividend, use the Marcus Evans branding as marketing spend benefit, maybe even use the club’s contacts for my commercial benefit, perhaps ticket sales, etc.
Result.
Net neutral - My 'cash cow' stays afloat — I take the remaining cash each year, and the wage/dividend and all the other commercial benefits — maybe I’ll pay to get the stand cleaned every 15 years to make my asset look nice if the locals complain too much.
Perhaps someone who is a shareholder with access to a balance sheet can tell me differently, which would be good to hear, but either way, based on these assumptions I can't see how he is not making money out of the club on a consistent basis.
It feels like Evans is slowly asset stripping the club while building up a debt position that only benefits him. The impact of which over a number of years seems clear to see...
Uppa Towen. |  | | |  |
| Evans Investment on 20:13 - Mar 4 with 2009 views | gordon |
That's nonsense. He doesn't actually take a payment for interest out of the club in the way you describe. |  | | |
| Evans Investment on 20:14 - Mar 4 with 2024 views | longtimefan |
Unfortunately for your theory, ME stopped taking interest payments quite a few years ago |  | | |
| Evans Investment on 20:14 - Mar 4 with 2019 views | J2BLUE |
Genius.
Would you like to invest in my bank lending exclusively to homeless people? 6% interest a year! They have no income and we'll need to lend them money every year but 6%! Send me a cheque if you are interested. |  |
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| Evans Investment on 20:20 - Mar 4 with 1982 views | Churchman |
That’s really interesting. Didn’t he buy the debt at a percentage of the actual debt then write the full amount against his company accounts before charging interest on it? For example, I seem to remember NU accepted £8m against the £30m it cost to rebuild Churchmans and North Stand. That would have given him a ‘profit’ of £22m and allowed him to charge interest against the full £30m plus the other debt.
I’m sure this is all total rubbish, but I’d be interested to hear the views of people who actually know about such things. |  | | |
| Evans Investment on 20:21 - Mar 4 with 1978 views | SpruceMoose |
| Evans Investment on 20:20 - Mar 4 by Churchman |
That’s really interesting. Didn’t he buy the debt at a percentage of the actual debt then write the full amount against his company accounts before charging interest on it? For example, I seem to remember NU accepted £8m against the £30m it cost to rebuild Churchmans and North Stand. That would have given him a ‘profit’ of £22m and allowed him to charge interest against the full £30m plus the other debt.
I’m sure this is all total rubbish, but I’d be interested to hear the views of people who actually know about such things. |
As a person who knows about such things, it is total rubbish.
All these posts do is perpetuate several myths that have been torn to shreds time and time again. |  |
| Pronouns: He/Him/His.
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| Evans Investment on 20:22 - Mar 4 with 1967 views | J2BLUE |
| Evans Investment on 20:20 - Mar 4 by Churchman |
That’s really interesting. Didn’t he buy the debt at a percentage of the actual debt then write the full amount against his company accounts before charging interest on it? For example, I seem to remember NU accepted £8m against the £30m it cost to rebuild Churchmans and North Stand. That would have given him a ‘profit’ of £22m and allowed him to charge interest against the full £30m plus the other debt.
I’m sure this is all total rubbish, but I’d be interested to hear the views of people who actually know about such things. |
It doesn't matter whether the interest rate is 1000%. Evans will never get us to the Premier League and it will never be repaid. All these little theories are great in theory but fall down with the slightest injection of reality. | |
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| Evans Investment on 20:22 - Mar 4 with 1962 views | Churchman |
| Evans Investment on 20:21 - Mar 4 by SpruceMoose |
As a person who knows about such things, it is total rubbish.
All these posts do is perpetuate several myths that have been torn to shreds time and time again. |
Fair enough. Conspiracy theory debunked! | | | |
| Evans Investment on 20:23 - Mar 4 with 1953 views | SpruceMoose |
| Evans Investment on 20:22 - Mar 4 by Churchman |
Fair enough. Conspiracy theory debunked! |
High five! Go team TWTD! | |
| Pronouns: He/Him/His.
"Imagine being a heterosexual white male in Britain at this moment. How bad is that. Everything you say is racist, everything you say is homophobic. The Woke community have really f****d this country." | | Poll: | Selectamod |
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| Evans Investment on 20:25 - Mar 4 with 1928 views | sparks |
If the club is losing money, you cant make money out of it.
Its as simple as that.
He is not receiving interest now. Any interest has been notional- and added to the debt in any event. The money does not come out. Because it is not there to be taken.
The suggestion of "asset stripping" is based on nothing, and probably libellous. |  |
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| Evans Investment on 20:25 - Mar 4 with 1922 views | monty_radio |
| Evans Investment on 20:20 - Mar 4 by Churchman |
That’s really interesting. Didn’t he buy the debt at a percentage of the actual debt then write the full amount against his company accounts before charging interest on it? For example, I seem to remember NU accepted £8m against the £30m it cost to rebuild Churchmans and North Stand. That would have given him a ‘profit’ of £22m and allowed him to charge interest against the full £30m plus the other debt.
I’m sure this is all total rubbish, but I’d be interested to hear the views of people who actually know about such things. |
I think I remember it was actually £8m against £36m, but I stand to be corrected. | |
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| Evans Investment on 20:29 - Mar 4 with 1875 views | Churchman |
| Evans Investment on 20:25 - Mar 4 by monty_radio |
I think I remember it was actually £8m against £36m, but I stand to be corrected. |
It was something like that, but either way my ill founded suspicions were shot to bits 😃 [Post edited 4 Mar 2020 20:29]
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| Evans Investment on 20:29 - Mar 4 with 1870 views | Marshalls_Mullet |
The club loses money, owning a football club outside the Premier League is not a cash cow. |  |
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| Evans Investment on 20:37 - Mar 4 with 1828 views | Sussex_Blue |
Well, I did say if someone could tell me differently that's good to hear - so good to be told differently.
But in that case, assuming good intent intended, I'm not sure I would want to be in his shoes without a clear exit strategy - and now somehow that feels like an even bigger problem - Stick, Invest or Sell - no easy choices. | | | |
| Evans Investment on 20:39 - Mar 4 with 1812 views | sparks |
| Evans Investment on 20:37 - Mar 4 by Sussex_Blue |
Well, I did say if someone could tell me differently that's good to hear - so good to be told differently.
But in that case, assuming good intent intended, I'm not sure I would want to be in his shoes without a clear exit strategy - and now somehow that feels like an even bigger problem - Stick, Invest or Sell - no easy choices. |
Yep- he bought in at a time where decent investment was likely to get premiership results.
Didnt quite get there- and then football finance changed massively.
If he was quite the evil overlord people make out, he would not have continued to fund to the level he has. | |
| The presence of those seeking the truth is infinitely to be preferred to the presence of those who think they've found it.
(Sir Terry Pratchett) | | Poll: | Is Fred drunk this morning? |
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| Evans Investment on 20:40 - Mar 4 with 1800 views | Marshalls_Mullet |
| Evans Investment on 20:37 - Mar 4 by Sussex_Blue |
Well, I did say if someone could tell me differently that's good to hear - so good to be told differently.
But in that case, assuming good intent intended, I'm not sure I would want to be in his shoes without a clear exit strategy - and now somehow that feels like an even bigger problem - Stick, Invest or Sell - no easy choices. |
There is no exit strategy, that's why he tries to mitigate his losses rather than put infrastructure in place to try to make the club competitive.
He took a punt and he's lost big time. | |
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| Evans Investment on 20:42 - Mar 4 with 1780 views | SpruceMoose |
| Evans Investment on 20:40 - Mar 4 by Marshalls_Mullet |
There is no exit strategy, that's why he tries to mitigate his losses rather than put infrastructure in place to try to make the club competitive.
He took a punt and he's lost big time. |
Basically he is the Romford and J2 of the football club ownership world. [Post edited 4 Mar 2020 20:42]
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| Pronouns: He/Him/His.
"Imagine being a heterosexual white male in Britain at this moment. How bad is that. Everything you say is racist, everything you say is homophobic. The Woke community have really f****d this country." | | Poll: | Selectamod |
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| Evans Investment on 22:26 - Mar 4 with 1627 views | ElderGrizzly |
| Evans Investment on 20:29 - Mar 4 by Marshalls_Mullet |
The club loses money, owning a football club outside the Premier League is not a cash cow. |
Absolutely. Villa lost £105m just last season getting to the Premier League |  | | |
| Evans Investment on 22:28 - Mar 4 with 1621 views | J2BLUE |
| Evans Investment on 20:42 - Mar 4 by SpruceMoose |
Basically he is the Romford and J2 of the football club ownership world. [Post edited 4 Mar 2020 20:42]
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He needs my system. | |
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