Where's the Money goes - Elstone reply to fans taken from EFC OS

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Brennan

Brennan

Player Valuation: £90m
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So how have we paid for £35m of players and £3m sundry equipment? It's a simple answer - Bellefield and more borrowing. The Club's net debt has increased from £22m in June 2006 to £45m in May 2011. At this point, one or two of you might be saying ‘stop spending?'

It can be difficult even for the best of us to get a grasp of finances so maybe the table below, covering the most recent five seasons in total, helps. It shows where every penny has come from and where every penny has gone.
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efc__1326476314_rev-ex-2.jpg


http://www.evertonfc.com/evertoninteractive/where-the-money-goes

Interesting...
 

This part made me fume:

The £10m instantly became £9m when we paid sell-on fees to Real Sociedad. Sadly, and despite a lot of hard work, £9m could become £7.5m by the end of the year with gate revenues dropping below budget (made even sadder by rumours of the sabotage of ticket sales, programmes and other matchday income). And £7.5m may well become £5.5m as our live TV appearances drop below the budget we set based on previous seasons' appearances.
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AND

I see "OTHER OPERATING COSTS" still hasn't been BROKEN DOWN AND ITEMISED!


Also that £19million financing costs... (excessively large really - dead money) is outside of that. So my view this "OTHER OPERATING COSTS" last year was bloated by a HMRC tax settlement.

But I want that confirming from the club in writing.
 
Additionally, WHY is there no "plan to increase commercial revenues"

"plan to improve club infrastructure to increase commercial revenues" etc etc etc.
 
Read the last line of each entry of the timeline. When players are bought, the debt goes up. When none are bought, it remains the same.

We can't borrow anymore, so no more new players.
 

kenada_blue said:
Im guessing they could never push to get an extra £32million from the commercial side of things....
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We are £20million a season down on where we should be on commerical revenue. i.e. SPONSORSHIP etc

Add that to infrastructure improvements (roughly +15000 extra seats at LAST YEARS ticket prices) would close us that hole and would of balanced that table.


And with this years ticket price increases we'd be NET +£4million per year (I think) over five years that's NET £20million PROFIT (pretax)!!!!

Which could be spent on further boosting revenues.... the so called "positive feedback loop"
 
"Other operating costs over the five year period, everything other than wages, including the maintenance of Goodison and Finch Farm, our utility bills, rates, insurance, police costs, security, travel, marketing, food and drink bills in our lounges, academy, scouting and medical expenses and many other costs have totalled £104m. In addition, we have paid £19m of interest and finance charges to our lenders. It means before buying any players, making the relatively small repayments on our long term ‘mortgage', investing in new technology, furniture and fittings, we have ‘broken even'. The money we've brought in has paid our wages, our overheads and expenses and the interest on our borrowings. "

These 'small payments' amount to 4-5m per season...in the current circumstances, I would say that is a relatively significant amount.

Is he a moron or something...or does he take us all to be morons? He should do another season by season account showing just how much money has been wasted, and how much extra a CEO with some decent commercial sense would have made us. What a tw@t
 
Bloody hell, a half decent explanation from Elstone!

I say half decent as I find the Other Operating Costs as hardly definitive in terms of explaining that £104m. Aside from wages and transfer fees I can't imagine what would cost just over £20m a year.

Oh, and fitting in with the tin foil hat attitude at our boardroom, he clearly thinks the Blue Union is the reason for ticket sales plummeting.

It's not. It's because we're turd.
 

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