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KEIOC urge “sensible caution” as Blues reveal plans
Everton have announced plans for a state of the art retail and administration development adjacent to Goodison Park that the club hope will be operational come next summer.
We here at SOS1878 were delighted to catch up with KEIOC (Keeping Everton In Our City) secretary Colin Fitzpatrick to gather the pressure group’s reaction.
SOS1878: Everton have announced plans for a state of the art retail and administration development adjacent to Goodison. What is your initial take on the plans put forward by the club?
KEIOC: Any development that delivers more net revenue for the club must be welcomed but due to the past performance of the board of directors a sensible amount of caution should be exercised; after all it’s not that long ago that Kirkby was being lauded as the deal of the century, yet, on examination, it transpired it was anything but.
SOS1878: On the face of it we’re getting something for nothing, would you agree?
KEIOC: Last night the chairman explained the club had learnt from their past mistakes yet everyone knows there’s no such thing as a free lunch and this is being promoted as a development which will be paid for by two of Everton’s partners, in other words, once again, we’re allegedly getting something for nothing again. Let’s wait and see what the deal is as I don’t believe Kitbag and Sodexo have suddenly become benevolent societies overnight.
SOS1878: Much has been made in the past of the footprint behind the Park End, and the room for potential redevelopment. Will this development scupper the hope of a two-tier Park End as part of a staged redevelopment of Goodison Park?
KEIOC: It’s certainly a concern, our proposal surrounded a £30m development that included a hotel, conference centre, an extended park end stand and the inclusion of an innovative product called stadia arena, which can be seen here
By constructing the extension to the stand behind the existing structure no loss of income would result and the concept revolves around generating increased matchday and non-matchday revenue streams far in excess of what is being talked about here. This development could prevent such a development taking place but artists impressions can be misleading, I’m not certain this is a solid structure or an L shaped block, like I said we’ll have to wait and see.
SOS1878: Sound great, very innovative, but it also sounds expensive and the big selling point of the block development is that it won’t add any debt to the club.
KEIOC: Neither would our proposal, it would be paid for by a share issue, Everton is grossly undervalued and represents an excellent opportunity. Further redevelopment would be paid for through equity and debt finance; just like at other clubs. As our CEO has said, we don’t have a design problem, we have a funding problem. Our solution isn’t favoured by the owner of the club because firstly it dilutes the value of existing shareholdings and secondly commencement would tie the club to Goodison, and the financing of the remainder of the redevelopment, for decades to come, probably into the next century.
SOS1878: Will the board look to sell the club on the back of this development considering the value that it will add to the club?
KEIOC: I’m not sure it will add value, it could be that the developers lease the building to Everton and our commercial partners, after having renegotiated their current contracts, pay the lease. Once Everton relocate to a new stadium the building could be sold and converted into part of another development, it could easily become the entrance to a supermarket for instance.
SOS1878: Why are the club still looking to relocate, despite this development?
KEIOC: They’re leaving the door open, I think that‘s understandable; a new stadium offers them two potential revenue opportunities that staying at Goodison wouldn’t; the income from the sale of Goodison and the opportunity to securitize a stadium naming rights deal. At some point they need to commit to one project or another.
SOS1878: Are the club still pursing a retail led development despite this new development?
KEIOC: I think this is the preferred solution favoured by the club’s owner.
SOS1878: Are KEIOC in favour of this type of arrangement?
KEIOC: No, experience tells us that, as with Kirkby, this doesn’t deliver a stadium of premiership standard, it simple delivers what an owner with no long term plan for the club has to offer. What you have to understand is that the owner of the club advocated moving to a stadium which would have generated just £6m for the business. To put this into perspective, since the formation of the premier league Everton has lost an average of £6m per season, a figure that rose to £7m during the attempt to relocate to Kirkby.
SOS1878: The club are forecasting that the development will boost revenues and improve bottom line profit. History tells us Everton see £6m as substantial profit, do you believe David Moyes will enjoy a noticeably improved transfer kitty each summer on the back of the revenues?
KEIOC: I doubt it will produce anything like that. We outsource all are commercial, merchandise sales and catering, activities to Kitbag and Sodexo in return for an agreed payment. Whilst an increase in revenue will no doubt filter through I’d be surprised if the figure was anything like what we were going to get from a whole stadium development. People often get confused by KEIOC’s motivation, it’s simple, we want what’s best for the future of our club whilst the owner wants the maximum return on investment; a figure that will only be realised upon the eventual sale.
SOS1878: Do these plans go hand in hand with KEIOC’s hopes for a ‘smart’ Everton stadium that generates funds 365 days a year within a football quarter?
KEIOC: They could be the start of a significant development; we’ll have to wait and see the actual plans but the current owner is of the opinion a new stadium is the solution to maximising the return on investment.
SOS1878: Do you think Robert Elstone can deliver where Keith Wyness failed to do so?
KEIOC: Robert Elstone is being asked to do off the field what David Moyes is being asked to do on the field; deliver miracles with no funding. To be honest I’d expect him to deliver; it will be interesting to see the plans and the forecasts. If all else fails we’re covered as a new planning application for the tent has just been submitted for it to remain in place for the next two years.
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25 Comments
I like this idea of moving the offices out to create a bit more hospitality type carry on to bring in some readies. I’m assuming the demand is there.
But this coffee shop part of it. Who in the right mind says “Fancy going for a coffee next to a dead busy main road and some closed chippies”
Good interview.
I personally see this move as a slap in the face to the Football Quarter.
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People often get confused by KEIOC’s motivation, it’s simple, we want what’s best for the future of our club whilst the owner wants the maximum return on investment; a figure that will only be realised upon the eventual sale.”
Here we go again. EFC open their mouths about Goodison (which it has to be remembered is THEIRS) and KEIOC start piping off again….zzzzzzz…… change the record you lot….
A hotel at Goodison Park? Sorry I just don’t see it taking off. If the stadium was located somewhere else maybe
Having read KEIOC, just an observation, two years down the road (8th August) article in the Echo challenging Warren Bradley & Co to come up with a new site solution. Currently dire economic situation, unemployment rising, and it still sounds like we have the same rhetoric, living in the land of the dinosaur, not prepared to see the big picture and try to move forward.
Evertonian’s who blindly follow what the club tell you, take the blinkers off!
The Kirkby retail enabled development would’ve given the club approx £6m extra a season. How much difference would that make for the huge risk?
For the board that same new stadium would see their share value rocket when it’s value was added to the price of the club. BK’s ‘advisors’ get to supply the retail for the development.
This is the only option the club will consider. Why is that? Who’s best interests is this in? If they pulled it off this is when the club would truly go up ‘for sale’ and our self centered board would be in line for a huge windfall.
Who exactly wins in such a retail led scheme…the board members and ‘advisors’ or EFC and the fans?
who wins in yours?
No one is blindly following the club. Seems plenty blindly follow your rhetoric and you ain’t complaining I notice..
I have eyes, I see both sides of the fence, yet on your side I don’t see anything less risky than what you accuse Kenwright of.
Where’s the money coming from to rebuild the club in whatever location A/B/C… Z (wherever you decide to put a pin in your KEIOC map next)??? C’mon bright spark – as I’m obviously so blinkered and dumb (to your eyes) enlighten little old me.
Boring boring same old stuff – ‘kenwright is a crook/charlatan/closet kopite in disguise/ trying to ruin EFC’… yada yada…..
All accusations, no REAL answers.
You call me ‘blinkered’ – talk of hypocrisy…….
Who wins in ‘ours’? Well with no motivation other than to lift Everton back up to where we belong, it’d be the club, you and me – the fans – that would win.
‘I don’t see anything less risky than what you accuse Kenwright of’.
The incremental development of GP, one stand at a time is more risky than moving the club out of the city boundary and alienating half of your core fan base in the process? And all for £6m a year? Come on mate, seriously.
Where’s the money coming from? KEIOC (who I support but am not a member of) have suggested ideas to the club but for them it’s retail or nothing at all (you heard of Arcadia?).
If the board had a little vision, a long term business plan and their main motivation wasn’t to line the pockets of the board/’advisors’, then redeveloping Goodison could be well on the way by now. Before you dismiss this out of hand, do your own research and don’t just swallow the local media/spin put out by the club.
And as there’s no chance of a retail led development in the
foreseeable future, the club have come up with this at best, stop gap measure. Better than nothing I suppose – which is exactly what the luvvie and his board have brought to the club in terms of off pitch infrastructure and investment into the club. Other than shares changing hands not one penny has been invested (FACT – from the Public Enquiry).
How many failed ground moves has your wonderful luvvie overseen now? His gargantuan ego cost us Kings Dock – we’d be playing there now had he agreed to dilute his shareholding for the good of the club. That was the moment I finally turned against him.
Moyes fine work is despite of the board, not because of. Another Summer, another net spend of £0! Kenwrights biggest achievement to date is lowering Evertonians expectations to that where they are now.
Nothing will change while the likes of your good self accept nothing can change!
BD no real answers you say, there is an answer. The club should offer a new share issue, but you don’t want to hear that because your wait for it….blinkered.
You talk of hypocrisy, Oh the irony of an apologist calling those critical/sceptical of BK..blinkered.
As for this: “I have eyes, I see both sides of the fence” is rather dishonest. All you do on this site is demand that Keioc and BK’s critics come up with answers to the clubs problems, while saying little of BK’s failure to come up with an answer. Let me restate this fact, Colin, has provided the answer a share issue that you have ignored, which is very revealing.
I don’t think your in a position to make a charge of hypocrisy against Ringfenced for being right about the boards motives, especially as you continue to deflect everyones attention from those responsible for the clubs failings. The awful truth is that Mr “I have eyes, I see both sides of the fence” is the only hypocrite here.
There is little point in debating with BD and I have answered his hypocritical charge of hypocrisy for you.
And here we have it, the same old arguments. Why is it that the people who have the best interests of the club at heart are always branded (yes I am talking about BK) and accused of wanting to better themselves financially, I`m quite sure BK is financially OK, probably could do without the aggrevation and I am quite sure that he has the best interests of the club in mind. Why is it that any talk of progress is immediately met with negative comments. Do we really want to end up like portsmouth or have new owners who are whose only interest is some short financial return in a couple of years. I wonder if people with eyes are really only interested in looking at the past, its always easy to be negative. Be careful what you wish for.
Well done, expat, you have used the “at least were not (insert name of club card)”, what was that you were saying about using the same old arguments.
Being serious expat, BK wants a return on his investment, nothing wrong with that. What is a concern is that in pursuing Kirkby he put the intersts of his retail backers above the clubs best interests.
David – take your KEIOC blinkers off. The most hypocritical of all on here. You’re worthless to debate with. You see one side only – yours and yours alone.
Well done David – you have used the ‘I accuse Bk of (insert offence here)’ argument yet again. What’s that you were saying about using old arguments? FYI I have read the KEIOC website and other related articles. I have, as you say ‘done my own research’. I don’t believe your current ideas any better than BK’s. If that makes me a bad person then whatever…..
Be serious – a rights issue will solve all problems financially. We can’t even find an investor who wants the club outright – never mind several of them willing to put money into it!! Or maybe you lot want the rights issue to buy a share? I don’t know, and frankly I don’t care.LFC appaer to have peole queing up to buy them. Who do you now wants EFC? Do you have proof that Bk has never tried (or isn’t) trying to sell? You’re stock argument is ‘BK won’t sell’ – translates as BK won’t do what we want. Toys out the pram time.
At least RingFenced’s answer was intelligent.
I do see both sides, and yes I too want what’s best for EFC – why wouldn’t I? How fucking stupid would that be? Your accusations of me are so wrong on so many levels. But hey ho I’ll be there at GP still supporting the team I’ve loved since fuck knows when.
Kenwright has his faults and the Kings Dock thing was an unforgivable deception. FYI I voted against Kirkby but not for any shitty reason of ‘We’re Everton and we belong in Liverpool’ – sentimental shite at best, irresponsible at worst. Those that did vote for it voted out of whatever altrusitic reason they saw, doesn’t make them criminals. You never made errors in your life David?
However BK (I believe) cares deeply about EFC and not just his pockets. That doesn’t make him right or a saint or a fucking God. But a fan. Same as you, me and the rest.
He aint perfect but seriously- you want two clueless Yanks or BK?
answers on a postcard please……….
Whatever makes you think BK wants a a return on his money (I think he would be quite happy to break even).In the real world people who have money don`t invest in football clubs, unless of course you can guarantee champions league football every year and have a modern stadium that can hold 60,000 plus spectators at every home game, and have the financial sponsorship to go with it, and have world wide interest. Perhaps BK is just a wealthy fan with the clubs best interest at heart.
BD you have just jumped the shark. A lot of incoherent anger doesn’t not make a valid argument.
For the record: I no .onger care which box you ticked in that discredited ballot and I have no desire to condemn the 15000. As for the mistakes cop-out yeah everybody makes mistakes, but Bill Kenwright and the current heirarchy have a track record of lies and BS, which for brevity sake I will not go into.
There is very little to engage with here expect for the fact that you don’t understand the difference between a buy out and a share issue.
BD.
The proof that BK isn’t and hasn’t been looking to sell came out at the Kirkby inquiry when it was revealed that the current major shareholders wasn’t “looking to sell or dilute their shareholding”.
The evidence was there in black and white.
Like it or not we are stuck with him and his massive ego for some time to come. I can’t stand this phoney and the fact he has so many fans duped.
There is very little to engage with here expect for the fact that you don’t understand the difference between a buy out and a share issue.
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So a share issue to dilute the already non existant share dividend payed out every year. Or are you just wanting BK and the current boards share of the final sale value diluted?
Heaybourne your concern about the value of the boards shares is touching, but like many blues I don’t care about it unlike your good self. What i do care about is the clubs future, do you?
O’Keefe
I have no interest in how the value of BK and Co_s share value will reduce. However additional share holders will want a return on investment, how much profit do we make?
So how will any new share holder make a return on the investment made?
Please you are so full of answers let me know will you?
Richard your backtracking and its embarrassing, why even raise the issue of the value BK’s shares when he decides to sell some point in the very distant future?
My answer is that the club is seriously undervalued at 45-50 million 35000 shares at 1300. Diluting the shares via a new issue would bring in funds to rebuild the stadium, increase revenues and from that values.
BK would actually make a decent return from all this, but then he has his own reasons for not doing that, such as keeping Sir Phillip Green happy and his own greed as selling a 25% Stake on a 50 million increase in value (kirkby) is worth a damn sight more.
I think you will find I highlighted the share issue to show how little return any additional investor would see.Plus Kirkby is dead in the water.
Richard you said no such thing. If the club uses the money from the share issue wisely by investing in the stadia, the shareholders will get a return, but your more concerned about the majority shareholders than the clubs future; so lets agree to disagree.
There is very little to engage with here expect for the fact that you don’t understand the difference between a buy out and a share issue.
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So a share issue to dilute the already non existant share dividend payed out every year. Or are you just wanting BK and the current boards share of the final sale value diluted?
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I fear you do not understand^^
The development of Goodison park will never happen, it will be used until such time..
A. A shared stadium is built
B. Another site with retail development/enabling is found
The Board are rich men already, a few extra £m’s in the bank wont change how they live now will it.
Do not try to tell me that I care more for how much money the club owners are looking to make than I do about the club/team!
All you have done Richard is muddy the waters and proclaimed yourself intellectually superior. I have made my position clear here and in my opinion your a time waster who is unable to keep track of his own argument.
The club can and should offer a share issue, but they won’t do this as being their financial advisor they can’t afford to buy new shares to maintain their holding. BK is a millionaire with debts to pay (debts incurred when he bought his 25% stake) and Robert Earl is a bankrupt (twice over). John Woods is a different matter, but BK and Robert Earl need the money from the sale of the club.
If your my intellectual superior fine, but of the two of us I have the information re these “rich mens” fortunes.
All you have done Richard is muddy the waters and proclaimed yourself intellectually superior
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What a very shallow way to try and force your opinions on any supporter. At any time did I say I am more intellegent than anyone else.
As you have all the answers then I have nothing else to add.