Everton could be close to administration

[Antynwa]

True that. But apparently there are new standards coming to effect soon, and the bullens is nearly all wood.

[manwiththestick]

True that. But apparently there are new standards coming to effect soon, and the bullens is nearly all wood.

 

Do these new standards apply to the Championship also? Just curious like.

[Antynwa]

Do these new standards apply to the Championship also? Just curious like.

 

Honest answer.

 

I don't know. The Safety Certificates are issued by the council I believe.

[Anubis]

A quick update on the Everton accounts for last year. They announced that they were signed off on the 31st January, which means they should be in the public domain soon. I'm not convinced they'll show the Blues are about to be put into administration, but I'll wager they don't make good reading.

 

Hence Moyes snapping "You're asking the wrong man!" at a reporter, in answer to a question about transfer activity.

[RobbieOR]

Just having a read of bluekipper, some deluded gobshite on there thinks that all of this 'non spending' over the last 12 months has been to show investors they can tighten their belts. Muppets.

[Captain Turdseye]

Not sure if its already been posted but I read somewhere the other day that Spurs only offered £500,000 for Phil Neville.

 

Fair enough, he's old and shit but maybe this indicates that Spurs know about their money worries and were trying to get him on the cheap.

 

I'm told by a couple of bitters that he's worth more than that, haha.

[The Acolyte]

Not sure if its already been posted but I read somewhere the other day that Spurs only offered £500,000 for Phil Neville.

 

Fair enough, he's old and shit but maybe this indicates that Spurs know about their money worries and were trying to get him on the cheap.

 

I'm told by a couple of bitters that he's worth more than that, haha.

 

Yep thats true £0.5M was offered.

[Whelan]

I think the problem is that Everton have always had, or rather set their wages to be a low percentage of their costs, but if you are then cutting players and wages and the percentage stays the same (which is what I have been told is the case) then you are in serious shit.

 

Hence three players out and none coming in. I just thank god we have so many Norwegians and Chinese fans to help us out! Otherwise we would be in serious shite if we had to rely on 25 thousand 'scousers' every week.

[WaltonRed]

Hence three players out and none coming in. I just thank god we have so many Norwegians and Chinese fans to help us out! Otherwise we would be in serious shite if we had to rely on 25 thousand 'scousers' every week.

 

Tell me you are joking?

[The Acolyte]

Just having a read of bluekipper, some deluded gobshite on there thinks that all of this 'non spending' over the last 12 months has been to show investors they can tighten their belts. Muppets.

 

Whats so hard to believe about that. Cancer and AIDS were doing the same with us!

[Whelan]

Tell me you are joking?

 

Not really, I was however being sarcastic!

[RobbieOR]

Whats so hard to believe about that. Cancer and AIDS were doing the same with us!

 

Cancer and aids were cutting back because they had interest to pay not to impress potential investors

[goatboy59]

According to Moyes, Fabregas accused Lee Mason of taking bribes.......I'm honestly trying to figure out which of the 3 is the bigger fuckwit.

[Penfold]

According to Moyes, Fabregas accused Lee Mason of taking bribes.......I'm honestly trying to figure out which of the 3 is the bigger fuckwit.

 

Cesc you dolt, they obviously couldn't afford to bribe Mason!

[goatboy59]

Oh yeah.........

[Anubis]

I don't know. I've heard Mason can be bought for a large McDonald's Quater-Pounder With Cheese meal. Surely Bill could spring for that? Well, at least a medium meal then.

[Penfold]

Something from the saver menu Lee?

[The Special One]

[njackets]

 

Brilliant!

[Anubis]

The stuff of nightmares!

[Anubis]

Accounts not published yet, but Bill's turning on his salesman act ahead of the event. Is he actually saying 'yes, we can't afford new players - but don't worry, we'll spawn some wins!'?

 

Everton Football Club has released its statement of accounts for June 1 2009 to May 31 2010.

 

The accounts reveal that the Everton Football Club Company Limited generated turnover of £79.1m, offset by operating costs of £79.6m. This resulted in an operating loss before player trading of £0.5m.

 

The operating expenses were up from £73.4m in 2009 due to increased and continued investment in the Club's playing squad.

 

A profit of £19m from the disposal of player registrations - due mainly to the sale of Joleon Lescott to Manchester City - was reinvested in the purchases of Sylvain Distin, John Heitinga and Diniyar Bilyaletdinov.

 

Contracts for the new signings, coupled with renegotiated deals with Louis Saha, Tim Howard, Jack Rodwell, Joseph Yobo and Phil Jagielka impacted on the Club's increased operating expenses, as did the loan signing of US international Landon Donovan.

 

In addition the average attendance increased from 35,667 to 36,729 and Season Ticket numbers increased from 23,717 to 25,671 a rise of 8%, generating £19.2m.

 

Chairman Bill Kenwright commented: “In modern football, the difference between success and failure can be wafer-thin. Yes, those clubs fortunate enough to boast a rich and generous benefactor undoubtedly have a clearly defined advantage but the outcome of crucial matches are quite often decided not by the size of the bank balance but more by skill, good fortune or the whim of a referee.

 

“From a financial perspective, the year was one which was underpinned by sensible business management which enabled us to continue to do everything within our collective power to help the manager in his concerted efforts to build a squad which would challenge the top four.

 

“Turnover for the year of £79.1million represented a decrease of £0.6million on the previous year, £79.7million, a figure which was boosted by our progress through to the FA Cup final.

 

“Irrespective of their standing within the various leagues, clubs will invariably be judged on two things - performance and level of support. Our average attendance for Premier League games at Goodison Park rose to almost 37,000 during the course of the last campaign, a statistic which delights me but does not surprise me simply because we are fortunate enough to boast the most loyal and knowledgeable crowd in British football.”

 

Broadcast revenue increased to £50.2m due to the Club's share of the centralised revenue deal from the Europa League, although domestic broadcast revenue was down. This was due to 13 domestic games being broadcast live in contrast to 17 in the previous season.

 

Commercial, sponsorship and merchandising revenue increased to £7.1m due mainly to the Club's deal with Kitbag.

 

Chief Executive, Robert Elstone, added: “In financial terms it was another steady year in what do remain challenging economic times. As ever, our primary aim was to do all we could to help assist and support the manager.

 

“All monies received from the transfer of Joleon Lescott were - as we had promised - reinvested in new players.

 

“Our wage-to-turnover ratio figure did rise in the last financial year but that simply serves to underline our commitment to both signing the best available players and to securing the long-term futures of those already at the Club."

 

 

This year's accounts will probably look ok, but without Europe this season, and a lesser league placing, next year's may make grim reading.

[Jose Jones]

Some quality pandering to the bluenose "masses" there from Bill:

 

"Average attendance for Premier League games at Goodison Park rose to almost 37,000 during the course of the last campaign, a statistic which delights me but does not surprise me simply because we are fortunate enough to boast the most loyal and knowledgeable crowd in British football.”

 

Although obviously only the 9th most loyal and knowledgeable really going by average attendance for the rest of the league.

 

The outcome of crucial matches are quite often decided not by the size of the bank balance but more by skill, good fortune or the whim of a referee.

 

Clive Fucking Thomas!!

[Randy Marsh]

Robert is Everton's Chief Executive.

 

8th February 2011 - 09:34

9

A Club in Meltdown?

 

The past fortnight has seen much speculation on the financial state of our Club. Our Accounts are later than usual, and although not late in any legal sense, I hate to say it, being later than prior years suits the agenda of a small minority of fans who seem intent on painting only the bleakest picture. According to the minority, it seems that late accounts can only mean one thing; Everton must be in ‘financial meltdown?' The Blues are set to go bust? Of course, it's simply not true. A couple of conversations I've had recently have highlighted some of the things being said.

 

A week last Saturday, before the Cup tie, I spoke to a couple of passionate and committed fans who asked me if I'd heard there was a demonstration planned. They offered to show me the texts going round to rally the fans. When I asked why there was a protest, the response was that fans think our Directors have sold all our assets and have pocketed the money. They then said the Chairman was guilty of repeatedly turning billionaires way. I sensed a degree of embarrassment in their voices. Both points are clearly crazy. Truly, the billionaire is yet to knock on the front door at Goodison. Truly, our longed-for Russian, sheik or our media mogul has NOT been put off by a ridiculous selling price. Further, as for ‘asset stripping', there are many club directors out there who pay themselves generous salaries and enjoy plenty of perks. Ours don't, not a penny in any salaries or expenses; not even the Chairman's record-breaking mobile phone bill!

 

After the Blackpool game on Saturday, I spoke to fans in the Joe Mercer lounge who questioned the lack of investment in players. Four players have left - Yakubu, Yobo, Vaughan and Piennar and, as I kept being reminded, no one has arrived. Of course, the first three have been loaned out with the blessing of the Manager and will either be back in the summer, or will generate us substantial transfer income. And I can assure you, we worked incredibly hard, for almost two years, to keep Pienaar, offering a lucrative new contract that in the end was rejected. My response was to pull out the team sheet; to look at the Manager's starting line-up, to look at the depth and quality on the bench. No one could deny it was an enviable team sheet. We had and we still have a great squad of players. A squad tied down for the long term. A squad enhanced by the acquisition and development of some great youngsters. Following long and considered discussion last summer with the Manager, a squad that the Board was prepared to commit to, and invest in. A squad, as we've all seen, that's capable of competing with the best.

 

Where the Money Goes

 

Whether we like it or not, it really is all about money. So where does our money go? The £50 million we get from Sky, or the £20 million we earn through gate receipts, or the new Kitbag deal? The simple facts are approaching 85p in every £1 we bring in, ends up one way or another at our training ground. From young prospects, to scouts, to medical support, to coaches and, of course to our first team squad, almost £70 million, out of our £80 million of income ends up at the Finch Farm complex. And quite right too. We wouldn't want it any other way.

 

Of course, we've plenty to show for our money. We have a great Academy and, according to almost every Evertonian, as I said above, the best Blues' squad in years; a squad we all believe will see us in Europe next season. That investment, and most specifically a player wage bill that's increased significantly over the past three seasons demonstrates one thing above all else and that's ambition. It shows Everton has a Board of Directors that wants, and pushes hard for success on the pitch. Surviving on what's left? Well that's quite a challenge. The remaining 15p has to go a very long way, supporting the ground, the pitch, our matchday operation, our ticket office etc., etc., etc.

 

Ambitious or Foolhardy?

 

Of course, fans want and deserve ambition. But, fans who are quick to criticise and look for failings are also quick to conveniently interpret ambition as financial mismanagement. If we don't invest, we lack ambition. When we do invest, we're putting the Club at risk! Not one we are going to win. It is fair to say however, that our pursuit of success has stretched our finances, something our Chairman hasn't shied away from saying on a regular basis. Spending every last penny strengthening the team has meant that we spend every day of every week looking to drive revenues and raise funds. It means financially, no one could ever describe us as cosy. But then again, very few clubs are particularly comfortable. In football, if you're not pushing finances hard, why aren't you? And, when you push hard in today's financial climate, auditors want more assurances and lenders want more comfort. Over the past two or three weeks, that's exactly where we've been. But that's also where many Clubs are, indeed that's where many businesses are; in a financial world with a very different outlook and with a new set of rules.

 

What the Accounts Say

 

I'm pleased to say our accounts are now signed off, with a clean audit report. They have been published this week and show total income, in tough times, that has remained at £80m. However, away from income driven by on field performances -by league position and cup progress, other revenues increased. Matchday revenue per game held-up well with increased season ticket numbers and higher average attendances, albeit in 2009/10 we missed out on a Cup run which saw a small decrease in total receipts, and our sponsorship money improved with the new Kitbag deal. Costs also increased, and rose more rapidly than income. With further investment in player wages, - specifically, Heitinga, Distin and Bilyaletdinov replacing Lescott, our wage to turnover ratio increased. It's still under 70% and if we included our shop turnover and our catering revenues (neither is included in our accounts as they are both operated by third parties), the wage/turnover ratio remains under 65%. And did we make a profit? taking total costs from total revenues, we made a small operating loss - the measure of how we're performing before player trading.

 

Football balance sheets are unusual and unlike most other businesses. In our case, as a result of accounting convention, Jack Rodwell, Tim Cahill, Mikel Arteta, Seamus Coleman and many more players are recorded at or near to nil value and certainly way below market value. As far as our published balance sheet goes, our assets are hugely undervalued. Our debts, however, are recorded in full. I think we'd all agree the most important number on the balance sheet is total debt and at May 2010, our accounting period end, total debt was £48m (£41m in 2009), an increase explained by the continued investment in players and a rising player wage bill.

 

Debt needs to be managed and ultimately repaid and it should be recognised and acknowledged that Everton has a strong finance team and the long term support of our bankers and lenders. Specifically, the Club has built and benefited from an eight year relationship with our bank, a partnership which is founded on the strength of the management team at Goodison, the stability in our Boardroom and two decades of top flight experience ‘racked up' by a Chairman and Manager envied across the Game.

 

Changes to Auto Cup

 

To finish, some evidence of how we do listen to our fans and make changes that are right for the Club and its supporters. After trying again to satisfy too many fans with too few tickets for our Third Round tie at Scunthorpe United, you asked us to review our Auto Cup scheme. Whilst there are merits to the scheme, and it was very easy to join, it is clear to us that the scheme allowed fans to jump the loyalty queue. As I said at the time, our aim on every occasion when tickets are scarce is that tickets go to fans who, ‘rain or shine', don't miss games. Fans who'd been to Brentford were missing out to fans who'd simply ticked a box. As a result, next season Auto Cup will be dropped for away Cup games.

 

As I hope you all know, our doors are always open to suggestions which will improve the Club and allow us to ‘do the right thing'. Our Fans Forum is now bigger, has wider representation, and meets on a regular basis. Our recent Supporters' Clubs visits have included Wrexham and Southport, with Netherton, Milton Keynes and Dublin around the corner. I have a meeting with the Shareholders' Association in a fortnight's time and I'm meeting a couple of fans on an individual basis who want to discuss away game issues. Fans, quite rightly, shape our decisions. The door is always open.

 

And Forward as One Team

 

I am a firm believer that anyone who buys a ticket has the right to voice his or her opinions and should be listened to. Everton respects the views of its fans and has demonstrated time and time again that we listen, we ‘front up' and we tell it straight. We don't want sterile debate, we don't wish to muffle our critics and we do want to be kept on our toes. But, I hope you'd agree with me, criticism should be positive, it should be fair and above all, should be for the long term good of Everton Football Club.

 

 

 

Just a little observation on the blueshite. I was in town with my dad looking to get their horrific pink away shirt for one of his BS mate's birthday. We couldn't bring ourselves to go in to their L1 store (although one look inside showed it was absolutely empty compared to it's bustling LFC counterpart next door) so we decided to look in the usual JJB, Sports Direct, JD etc,. Couldn't find one anywhere, or any other Everton merchandise for that matter. Lad in JJB then tells us that only their official club store sells their products, no where else. What the fuck is that all about?

[Trumo]

Just a little observation on the blueshite. I was in town with my dad looking to get their horrific pink away shirt for one of his BS mate's birthday. We couldn't bring ourselves to go in to their L1 store (although one look inside showed it was absolutely empty compared to it's bustling LFC counterpart next door) so we decided to look in the usual JJB, Sports Direct, JD etc,. Couldn't find one anywhere, or any other Everton merchandise for that matter. Lad in JJB then tells us that only their official club store sells their products, no where else. What the fuck is that all about?

 

I must admit I am staggered that their total annual revenue is a mere £80m! As for the lack of merchandising outlets, that is them thinking people will buy their stuff from the official club shops or online from Kitbag (who are among the priciest retailers for club merchandise and still whack on hefty delivery charges) and that it will still be a profitable avenue. To me it appears they are so keen to avoid being seen to be "selling out" that opportunities for growth are being passed by. Even David Moores didn't sit still that much.

[ChicagoRed]

Still good to know that Everton are in good shape financially although I doubt they'll make Europe next season!