- Status
Jay
Player Valuation: £8m
There are 3 major challenges ahead:
1 – Maintaining and improving the 1st team squad
2 – Clearing the debt
3 – Building a new stadium
I will start by the debt, using the current TV deal (2 more years), I guess we will clear our debts in the next 2 years (15M each year).
As for the squad, money will be available to strengthen but not more than 15M each season (without player sales).
So by the end of next season we will be debt free and with a very good squad (current squad + further investment of 15 to 30M).
By then the new TV deal will come in, we all know it will be more than the current deal, so more money and less expenses (no debt) , so the money will go to the new stadium and improving the squad. I guess we will take a new big loan to invest in the new stadium, a 50K stadium costs between 200 and 300M, we don’t need the whole amount upfront, there will also be naming rights and Goodison park’s sale that will generate money toward the stadium, so as long as Premier League is the most popular league in the World and keeps attracting huge TV deals (locally and worldwide) I can see us playing in a new stadium and debt free within the next 10 years (New TV deals will pay the Stadium loan over the 10 years).
1 – Maintaining and improving the 1st team squad
2 – Clearing the debt
3 – Building a new stadium
I will start by the debt, using the current TV deal (2 more years), I guess we will clear our debts in the next 2 years (15M each year).
As for the squad, money will be available to strengthen but not more than 15M each season (without player sales).
So by the end of next season we will be debt free and with a very good squad (current squad + further investment of 15 to 30M).
By then the new TV deal will come in, we all know it will be more than the current deal, so more money and less expenses (no debt) , so the money will go to the new stadium and improving the squad. I guess we will take a new big loan to invest in the new stadium, a 50K stadium costs between 200 and 300M, we don’t need the whole amount upfront, there will also be naming rights and Goodison park’s sale that will generate money toward the stadium, so as long as Premier League is the most popular league in the World and keeps attracting huge TV deals (locally and worldwide) I can see us playing in a new stadium and debt free within the next 10 years (New TV deals will pay the Stadium loan over the 10 years).
And for a fairer comparison
Villa 2001 £4m
Villa 2013 £14m
Newcastle 2014 £17m
Norwich 2013 £14m
Pabbers
Player Valuation: £60m
MickA
Player Valuation: £10m
Last edited:
A
AJC5
Guest
Errr, do you have mortgage?
You have to pay back more than you borrow otherwise the bank won't lend you the money. The result of borrowing (i.e. Investment) is to increase revenue and profits. Borrowing allowed us to remain in the top flight which means we reap a windfall every year from the TV deal.
Lids1978
Banned
Thats truely shocking. cheers for posting
MickA
Player Valuation: £10m
Let's hope this has put an end to the VIBRAC loans to cover the TV money a few months in advance then.
mightymoyes
Player Valuation: £70m
our next signing should be norwichs commercial director!
Mate we cant clear part of the debt, without aquiring significant financial penalties untill 2027 as Dave said. As i said earlier the debt is in fly swatting territory now though. I remember when our debt to turnover ratio were equal.
What i would say on TV revenue, is we like all of football are wholly dependent on it, its not healthy and the laws of econmonics tell us it will have a downward cycle at some stage, whether that will be a crash or soft landing is another story.
marty mcfly
Player Valuation: £40m
Things are moving forward nicely. Strong squad, some really good young players and making a nice profit.
If we keep this up we could easily pay for a new stadium.
If we keep this up we could easily pay for a new stadium.
tim cahill
Player Valuation: £50m
The downward cycle won't necessarily happen anytime soon though.
Dymak
Player Valuation: £40m
I'm happy with the results, but I just hope everyone doesn't get pre-occupied with reducing the debt. For example, we have chosen to reduce the debt by 17 million pound (21 million Euros), well you can buy players like Cabaye or Firmino for that type of money. And had we done so, our debt still would have been entirely manageable and relatively small in Premier League terms at just 45 million. We would also have another extra 60 million or so coming our way over the next two years. It wouldn't have been risky at all.
The main beneficiaries from the reduction of debt are the major shareholders as it increases their equity and ROI in the event that Everton were sold. It also may make us more appealing to a new owner, and it may also make borrowing for a new stadium easier, but it actually means that the money to pay off the debt would return to Kenwright's pocket in the event of a sale, it wouldn't be going into the club, although we would have a new owner.
I guess I'm asking you what you prefer? A reduction in a debt that was/is entirely manageable, or making our squad strong enough to truly compete in the champions league through signing the likes of Cabaye or Firmino?
The main beneficiaries from the reduction of debt are the major shareholders as it increases their equity and ROI in the event that Everton were sold. It also may make us more appealing to a new owner, and it may also make borrowing for a new stadium easier, but it actually means that the money to pay off the debt would return to Kenwright's pocket in the event of a sale, it wouldn't be going into the club, although we would have a new owner.
I guess I'm asking you what you prefer? A reduction in a debt that was/is entirely manageable, or making our squad strong enough to truly compete in the champions league through signing the likes of Cabaye or Firmino?
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