A Response to Professor Tom Cannon
Professor Tom Cannon’s open letter to Bill Kenwright can be found at:
Evertonian Colin Fitz has responded with:
Out of consideration I usually begin my posts with an acknowledgement to the writer I'm responding to, in this case Prof. Tom Cannon, but on this occasion I'll reserve the courtesy. This is perhaps the most transparent and disgraceful piece of propaganda used, perhaps prepared in desperation, in a bid to manipulate the spectators minds. To some, the clarity of thought from a Professor who as a "special advisor" to the board will add a certain amount of gravitas and either endorse the instinct followed by many voters or persuade those late voters that this, as an academics appraisal, is honest and candid.
First of all I would hope the Prof. Cannon could put me in touch with the bank that will offer a £150,000,000 at 5.34% interest when the base rate currently stands at 5.75%. Loans involving large amounts such as this are currently obtained between one to two points over base so, specifically; a loan of the size indicated would cost, at 7.25%, £13,162,785. Yes more than is indicated, but all those dazzled by academia just wait for the rest, and before accountants start to argue about tax effectiveness just remember that Everton's current long term debt liability, a £30,000,000 securitization loan, is at 7.79% (£2,767,000 p.a.). Second, loans of this magnitude are not subject to fluctuations in the interest rate, the risk is spread to both parties, look at Arsenal, Newcastle in deed look at Everton's loan, it's not like nipping into the Nat West and getting a house mortgage, the insinuation that it is frankly beggars belief. All the aforementioned have fixed rate loans over a 25-year period, why introduce a topic that has no relevance whatsoever?
If, Prof. Cannon, you intend to take matters at face value then the figure you use for potential debt for Kirkby, provided by Mr. Leahy, must be taken with the proverbial pinch of salt. Notwithstanding the indisputable fact that the £35,000,000 is a 133% increase on the £15,000,000 figure, as the likely amount of debt supplied only two weeks earlier by the Everton CEO Mr. Keith Wyness, I find it incomprehensible that you have not questioned the possibility that this potential debt will actually range between £75,000,000 and £100,000,000 unless of course we are having built the cheapest stadium in the history of premiership football. A loan of this magnitude, £75,000,000 at 7.75%, would cost £6,876,482 or £8,775,190 for the top figure.
As for your chart, applying some realistic data and not relying on frankly naive assumptions that a city centre site would not offer substantially increased benefits when attempting to develop the commercial revenue streams that are available outside of the normal match day experience, according to experts such as Simon Inglis, is, in addition to the inescapable fact that if Kirkby were to be developed the contribution from the retail only site to Everton Football Club would be, and this isn't an estimate, zero, no hotels or leisure facilities are to be built, according to Mr. Wyness, it doesn't take a genius to work out why, yet another attempt to distract .
Debt is a fact of modern premiership clubs, look here at Liverpool, Top premiership clubs have two fantastic enabling partners, their fan base and their presence in the premiership. Look at all the top clubs, look at the rest, then tell me, as the 21st richest club in the world, why we're adopting the commercial tactics of, with respect, Bolton, Portsmouth and the rest.
You Prof. Cannon are either incredibly ignorant of your subject matter or you believe that the supporters of Everton Football Club are incredibly stupid and will believe whatever is wheeled out in front of them. I can assure both you and certain members of the club that the supporters are not as stupid as you think. No wonder Mr. Kenwright has remained almost silent throughout the ballot period. I have found the actions of the club in the past week to be disgraceful, I'm at a loss to explain why the club should adopt these tactics as my gut feeling tells me that whilst far from being a massive vote of confidence the Yes vote will prevail as most voters have only heard a monologue from the club and the local press. I'll be glad when the vote is over; I'm frankly sick and tired of it now.
A very disappointed Evertonian.