Financial Fair Play investigation

[catcherintherye]

It isn't changing the auditors that is the problem. It is denying that BDO had resigned when they clearly had.

But it has no relevance mate. And they didnt resign. They werent employees, so couldnt resign.

 

[catcherintherye]

BDO didn't sign off on the latest accounts it was Crowe.

That's was what I said mate, the previous accounts firm refused to sign them off. It's sort of old news now.

 

[RomanReigns]

You realise that selling Gordon and moise kean for the next accounts is going to have a similar effect with us making probably another loss or around 30 mil this season

It’s a never ending cycle of losses that are just minimised by player sales

Will be Pickford next in line and then Onana

Then we will run out of players to sell

 

[blulouie]

We are far from the only club in this scenario, but our current profit and loss position seems to suggest we can only avoid an enormous and unsustainable loss, by making a big sale every season.

The figures on their own aren't that bad. Although I'm assuming the Richarlison sale is in there. Take that out and they are pretty woeful figures.

The figures are nowhere near as bad as what I thought tbh.
Agreed there are other clubs pretty similar to us.

Big factor is the lack of a major sponsor , that ongoing will force us to sell an asset every season until one is sought.

A major war in Europe has put paid to that.

 

[Marius57]

We are far from the only club in this scenario, but our current profit and loss position seems to suggest we can only avoid an enormous and unsustainable loss, by making a big sale every season.

The figures on their own aren't that bad. Although I'm assuming the Richarlison sale is in there. Take that out and they are pretty woeful figures.

Newcastle for the same period had a 70m loss and wages to revenue turnover of 95%.

 

[jonnyboy316]

You realise that selling Gordon and moise kean for the next accounts is going to have a similar effect with us making probably another loss or around 30 mil this season

It’s a never ending cycle of losses that are just minimised by player sales

Will be Pickford next in line and then Onana

Then we will run out of players to sell

Pickford sold before June 30th to see us close to a break even

 

[mahermi1]

You realise that selling Gordon and moise kean for the next accounts is going to have a similar effect with us making probably another loss or around 30 mil next season

It’s a never ending cycle of losses that are just minimised by player sales

Will be Pickford next in line and then Onana

Then we will run out of players to sell

And yet we have fans/ posters on here who think our Chairman/ Board are actually doing a good job. Let it sink in if we hadn't have sold Richarlison, we would have been easily over £100m in losses again, the richest league in the World and we have a Chairmen who preaches, other Clubs boards often ask me " What would Evertons board do ? " before making an important decision.....

 

[mahermi1]

Newcastle for the same period had a 70m loss and wages to revenue turnover of 95%.

Who did Newcastle have to sell ?

 

[Connor]

Some things I've taken away

• Wages to turnover dropped from 95 to 90%
• We paid Benitez and staff 10.5 million
• We pulled in 15.4 million in gate receipts but apparently 10.8 million of the famous "Other Operating Costs" are due to the stadium being open to fans?
• We've cut the amount we're losing on writing off player contracts from 81 million to 68 million.
• Despite losing the USM and Megafon deals the commercial and sponsorship revenue stayed about the same.
• Broadcasting dropped a bit because the last year was inflated due to the extra games in the financial period from the covid postponements.
• "Other Commercial Activities" increased by about 4 million, I'm assuming Florida Cup?
• Wages/staff costs dropped by 20 million (This would include the pay cut from Ancelotti to Benitez and losing James)
• Looks like they made sure to point out that Brands was the highest paid director with 2 million last year and the next highest now is getting just under 900k, overall director pay dropped from 4.2 to 3 million
• 168 million spent on the stadium by July 2022

Also just want to point out to @4737carlin Bill Kenwright signs off on these accounts.

Are we going to cease to exist come may?

 

[Marius57]

Who did Newcastle have to sell ?

No one yet but I would imagine they will need to sell someone early this summer for this years books having spent big on Gordon.

 

[davek]

Also mate, they could threaten the development of the Northern Docks area

Yep....something the government better bear in mind.

 

[gwladysnight]

Because the context of the discussion is around a charge that has been made. And has no relevance to that.

The circumstances may be unusual, but changing auditors is quite normal. Lots of businesses do it. The accounts were signed off by Accounting professionals.

Of course, it has relevance to the charge. Even with crystalized COVID losses we would have still failed P&S rules. We presented the Premier League with unaudited accounts that we assured the Premier League would pass the P&S rules when the uncrystallized COVID losses were crystallized.

The Premier League took us at our word. Our whole defence is based on the notion that we would have passed P&S if it were not for a depressed transfer market resulting in lower player trading profits and higher amortisation and wages.. We were not able to quantify those losses in the 20/21 accounts. BDO have resigned and laughably we still haven't quantified those losses in these accounts.

This is what the club stated in the last accounts.

Please note the table above does not include uncrystallised COVID-19
pandemic related losses arising from the significant deterioration in the
player trading market. The ability of the Club to generate material profits on
player trading, which also yields significant wage and amortisation savings
due to the players no longer being contracted to the Club, has unquestionably
resulted in a material and negative impact on the Club across the last three
reporting periods.
The Club is continuing to assess the uncrystallised financial impact caused
by the COVID-19 pandemic and the Board of Directors strongly believe that
a further substantial financial loss, not reflected in the £90.4m cumulative
crystallised figure referred to above, has been incurred by the Club


No wonder BDO ran for the hills.

Our defence to the P&S losses is that we lost money because of COVID, we can't quantify it but we are still working on it. It exemplifies everything that is wrong with the way the club has been run for decades.

 

[mahermi1]

No one yet but I would imagine they will need to sell someone early this summer for this years books having spent big on Gordon.

But what I said still stands, Newcastle lost £70m, but they invested big last year we sold our best player for £60m, otherwise our losses would have been far larger than the Skunks, sorry if I come across as negative.

 

[larrygobfiend]

We’re goosed aren’t we?!

Anyway, there will always be an Everton because us fans exist.

 

[ChrisPW75]

Have I got this right. We made a 45m loss and in the same year moshri gave us 70m and we made 65m net from player sales? Ffs