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Thursday, October 9, 2008

Everton FC obtain a £30million credit line from Barclays

Everton have extended their credit line with Barclays to £30million secured against television money for the 2008/09 season. The loan, in the form of an overdraft facility obtained at Bank of England base rate (currently 4.5%) + 3%, was made available to the club on 12th September 2008. This is a similar arrangement to a £25million facility agreed last year, also with Barclays.

The reasons for the club needing to extend their overdraft outside of the transfer window remain unclear although there are some suggestions it could be related to Marouane Fellaini's transfer fee and Kirkby stadium plan.

It could prove to be superfluous should the money be used for the purpose of assuring the necessary parties that funds are available for a new stadium in Kirkby. One week prior to the new agreement a KEIOC representative told the Everton board at the Extraordinary General Meeting that "It would be unrealistic to expect construction to begin before quarter 3, 2010" due to Kirkby resident's objections, CPO's (Compulsory Purchase Orders) going to the European courts and supplementary legal challenges that would ensue in the (unlikely) event that the planning inspector approves the Tesco application!

Further information on the latest financing can be found here.

In July, the Guardian newspaper reported that Everton have a dozen loans outstanding "against their property and assets".

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