Finch Farm For Sale – Is Something Afoot?By Unclassified • Oct 21st, 2011 • Category: News |
FollowEverton have acquired a prospectus from DTZ Estate Agents, showing that Finch Farm is currently ‘for sale’.
Everton FC acquired the land for Finch Farm in 2006 – but sold the land to ROM Capital for £2.1mil as the board were unable to produce the funds to develop the training facility. ROM Capital completed the training ground to the clubs specifications in 2007 – the training ground and land was at this point then valued at just under £10mil. This all meant that Everton tied themselves into a lease deal with ROM Capital which would cost the club over £110mil over a 50 year period after the yearly payment increase as a result of 2.5% compound interest is taken into account. The club are currently paying just over £1.25mil a year ‘rent’ – a payment which the vendors suggest is ’secured’ against the Sky TV money.
Everton do have an option to buy the ground back – and are able to exercise this once every five years – the next opportunity will be in July 2012 when we would need to find £16.5mil to fund the purchase. A mortgage deal would have saved the club a significant amount of money in 2006 – but it appears that this may not have been an option, given the club has already sold and mortgaged all of our fixed assets and the board can not or do not want to guarantee loans, this may well have not been an option. Finch Farm is being marketed for a price of just over £15mil plus VAT.
Now the point of this article is not just to point out that Finch Farm is to have a new owner – who will earn a significant sum of money from the club. Though this prospectus does shed more light on the ludicrous lease deal agreed by the club in 2006. The point of this article is to perhaps draw some attention to a spurious piece that appeared on the ‘Daisy Cutter‘ website on the 10th October. This article which was dismissed out of hand by most supporters who read it – due to the dubious, ‘football rumours’ nature of the site. However this article suggested that we may be subject to a buyout from an as of yet unidentified party from India. This group apparently developed an interest after finding out about a lucrative land deal on offer (which the author on Daisy Cutter now claims is Finch Farm). The board are apparently seriously courting this interest, which if true is no doubt down to the fact that we do not seem to have the finance or know how on the board to take us forward – we are in fact regressing.
There has been a follow up piece on the ‘Daisy Cutter‘ site maintaining that the original piece was true – and the author believes the released prospectus showing Finch Farms availability further backs up his story. So are we about to be bought out? Or is this yet more BS? One thing is for certain, the sale details further highlights the desperation of the board in terms of the ‘business deals’ we have in place. A new buyer for the land will be able to earn a pretty penny out of us.
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