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[mrb85]

Increasing turnover without having any real impact on the net return is absolutely pointless and I don't agree that where you sit in some turnover table would have any tangible impact on your commercial attractiveness

As the old saying goes.....turnover is vanity...

It's not 'absolutely pointless' from either a financial or a commercial perspective. In general terms financially the higher the turnover the cheaper is borrowing, the easier the cash flow etc. Commercially, none of us are prospective investors of course, but I'm sure it raises more interest to be able to sell Everton as say the 15th 'biggest' club in the world than the 21st where we currently stand if I remember correctly.

 

[Foot Long Hot Dog]

It's not 'absolutely pointless' from either a financial or a commercial perspective. In general terms financially the higher the turnover the cheaper is borrowing, the easier the cash flow etc. Commercially, none of us are prospective investors of course, but I'm sure it raises more interest to be able to sell Everton as say the 15th 'biggest' club in the world than the 21st where we currently stand if I remember correctly.

I don't see how turnover affects commercial lending rates at all, care to explain that one?

Neither do I understand how turning over the cash yourself for merchandising eases cashflow by default?

In short I think that's nads mate

 

[Neiler]

The cost of developing our own commercial infratsucture i would guess would eat into our margins - its actually can be costly to set this up, we prefer to loose commercially overall by outsourcing, rather than set up our own commercial infrastructure, this is reflected in our commercial figures. I certainly dont believe its down to a lack of fan base or commercial interest i think its a skil set we just dont have at the club and priortised in recuritment a CEO who could opperate in tight margins rather hen expand those margins. What to do when we have money is something i dont think we prepared for or neceesarily Know what to do on the commercial front.

Its worth pondering, id say.

 

[Tel001]

We can buy finch farm in 3 years?

 

[SerenityNigh]

Increasing turnover without having any real impact on the net return is absolutely pointless and I don't agree that where you sit in some turnover table would have any tangible impact on your commercial attractiveness

As the old saying goes.....turnover is vanity...

Increased turnover means also you're able to increase expenses, which is what the accounts indicate. Depending on what camp you belong to, these increased expenses are:

A) wages
B) OOC ('koff Kenwright)
C) extra cheese on toast

 

[orly]

'Hey lads we are £20m in debt'

'Fantastic! Great business performance!"

Professional sport is ace

 

[dublinbluenose]

As long as servicing the debt is not over-stretching other areas of the business then being in debt is not a major problem, pretty much every western democracy runs at a loss and just keeps turning their national debt over in medium to long term bonds.

 

[mrb85]

I don't see how turnover affects commercial lending rates at all, care to explain that one?

So Diageo can borrow only as easily and only at the same borrowing rates as Joe's Shoeshine Ltd?

 

[Steve Wigan]

Take the word 'been' out of this and you're being more accurate -- with the word left in there is the implication that the club have done something to make it happen.

They did do something...they outsourced!!

 

[Nashtbs]

Not reading the whole thread but I was at a talk at Hull uni last week with Elstone. Chatting a lot of [Poor language removed] about our growth.

What I found to be the most interesting point was he used the line "I think overseas markets are overrated, not as much money as people think out there." Well something along those lines, basically his tactic is hope the TV money keeps increasing.

 

[Foot Long Hot Dog]

So Diageo can borrow only as easily and only at the same borrowing rates as Joe's Shoeshine Ltd?

That's a crap analogy. Were talking about how a few extra £m in turnover, not bottom line profit, can somehow provide financial advantage in the market when it comes to borrowings.

Explain away lad, I'm all ears

 

[mrb85]

That's a crap analogy. Were talking about how a few extra £m in turnover, not bottom line profit, can somehow provide financial advantage in the market when it comes to borrowings.

Explain away lad, I'm all ears

OK, lets make a more meaningful comparison Do you think the RS borrow on terms as tight as Everton? With a bank that rigourously enforces a low overdraft limit? No. Think perhaps it might have something to do with its greater turnover despite its far, far greater annual losses.....?

 

[EverBlue86]

Not reading the whole thread but I was at a talk at Hull uni last week with Elstone. Chatting a lot of [Poor language removed] about our growth.

What I found to be the most interesting point was he used the line "I think overseas markets are overrated, not as much money as people think out there." Well something along those lines, basically his tactic is hope the TV money keeps increasing.

This is the same guy who was out in Qatar holding a football business meeting with Arab businessmen with no doubt links somewhere to big qatari royal family owned businesses. And we wonder why we will never be sold

 

[Bluesnapper]

As long as servicing the debt is not over-stretching other areas of the business then being in debt is not a major problem, pretty much every western democracy runs at a loss and just keeps turning their national debt over in medium to long term bonds.

The worlds greatest Evetonian says it is a problem at the last GM held at the Phil.

 

[Foot Long Hot Dog]

OK, lets make a more meaningful comparison Do you think the RS borrow on terms as tight as Everton? With a bank that rigourously enforces a low overdraft limit? No. Think perhaps it might have something to do with its greater turnover despite its far, far greater annual losses.....?

I've no idea what the RS's borrowing terms are, but I'm certain that their turnover isn't the deciding factor if they're considered a lesser risk than EFC and therefore have better terms (asssuming they do)

Turnover alone means knack all mate in that context mate, you're barking up the wrong tree trying to make out it does, so lets' just leave it there.