Farhad Moshiri

[Goat]

Damo, I aint no suit wearing businessman, im just a gangsta I suppose, but even I can see how shocking the business deals are and ive only got a level 2 NVQ in Business Admin.

Sit back and enjoy the ride.

 

[bizzaro]

Damo, I aint no suit wearing businessman, im just a gangsta I suppose, but even I can see how shocking the business deals are and ive only got a level 2 NVQ in Business Admin.

Sit back and enjoy the ride.

Mate. Moshiri will see through the BS in short order.

I can't see him tolerating some of the BS for too long. He's here to get things done.

 

[bizzaro]

Latest front page article:

I'm glad you mentioned the Stadium there Esk.

I view commercial and the stadium revenues as directly and proportionately related.

Robert Elstone sees it as excuses. I see it as opportunities.


However, can't agree with anything in that article as you addressed my priorities as much as anyone has done.

 

[Efcjake]

All the assumptions based on 20% net profit are wrong because of the contents of that note.

It's not unrecorded turnover as such,it's merely showing what the increase in turnover would be in the club's estimation and in accordance with their reporting standards if the relevant outsourced activities were in-house. Wouldn't even attempt to guess how much of the 8.2mil is attributable to which activity.


Only restated for 2014 and 2015 I think.

Can you explain that in a bit more detail? Are you saying that you assume the profit margin to be higher or lower than the 20% figure you proposed based on the note in the account?


Looking back to the 2007 accounts when merchandising and catering where in the same accounts and the figures for turnover from the outsourced operations are provided provides a better idea of the profit margins from the outsourced operations.

In those accounts they state a turnover of just over a million pounds, but given these were outsourced operations I would say it is fair to assume that this represents profit. The note regarding the turnover of the outsourced operations gives a figure of just over 7.5 million. Using those two figures you get a combined profit margin for merchandising and catering of approximately 14%.

Trying to figure out what would be an accurate turnover and profit margin to assume for merchandising in 2016 requires a bit more work since they changed the structure of the accounts and moved the merchandising turnover into the Sponsorships account.

 

[hibbo'sclass]

My source was SwissRamble - he did explain once why his data was different I will try and find it.

Going back to strategy, we need to unwind kitbag now regardless of the cost. This is not about short term profitability, it is about growing a merchandising operation that reaches far beyond what Kitbag can offer. To leave it another 2 seasons gives our competitors a further 2 years to grow their businesses whilst we stand still.

I'll go into more detail when I have more time but we need to recruit a new CEO in the first instance and bring those businesses back in house so we can grow them from today not in 2 years time.

Hi mate. Serious question - if SwissRamble uses different criteria to the published accounts, how skewed will his figures be for all clubs mentioned?

Unwind Kitbag, fair enough I understand the reasoning. The questions I would ask are:-

How long will it take to put the infrastructure for both the (worldwide?) retail and internet based sales (including distribution networks) at the best possible rates. I realise that this won't take 2 years, but could it be done seamlessly mid season? I have no experience whatsoever in retail.

Do we currently have anyone/a team at the club who is capable of the above - if not, how long to recruit

The CEO thing is obviously linked to the above, so is it your feeling that R E being appointed to the board is a short-term measure, or will he relinquish his CEO status and remain on the board.

Really not being an awkward sod here, but genuinely curious.

 

[The Esk]

Hi mate. Serious question - if SwissRamble uses different criteria to the published accounts, how skewed will his figures be for all clubs mentioned?

Unwind Kitbag, fair enough I understand the reasoning. The questions I would ask are:-

How long will it take to put the infrastructure for both the (worldwide?) retail and internet based sales (including distribution networks) at the best possible rates. I realise that this won't take 2 years, but could it be done seamlessly mid season? I have no experience whatsoever in retail.

Do we currently have anyone/a team at the club who is capable of the above - if not, how long to recruit

The CEO thing is obviously linked to the above, so is it your feeling that R E being appointed to the board is a short-term measure, or will he relinquish his CEO status and remain on the board.

Really not being an awkward sod here, but genuinely curious.

Fair questions, no problem. Will answer later when free of other things.

 

[hibbo'sclass]

Can you explain that in a bit more detail? Are you saying that you assume the profit margin to be higher or lower than the 20% figure you proposed based on the note in the account?


Looking back to the 2007 accounts when merchandising and catering where in the same accounts and the figures for turnover from the outsourced operations are provided provides a better idea of the profit margins from the outsourced operations.

In those accounts they state a turnover of just over a million pounds, but given these were outsourced operations I would say it is fair to assume that this represents profit. The note regarding the turnover of the outsourced operations gives a figure of just over 7.5 million. Using those two figures you get a combined profit margin for merchandising and catering of approximately 14%.

Trying to figure out what would be an accurate turnover and profit margin to assume for merchandising in 2016 requires a bit more work since they changed the structure of the accounts and moved the merchandising turnover into the Sponsorships account.

Putting it simply mate, if you assume flat 3mil from Kitbag and 950k (?) from Sodexo + a bit in royalties from Kitbag say 150k, the recognised profit in the accounts would be 4.1 mil which is included in turnover.

What the club are saying is that in order to achieve that level of profit, the turnover from those 2 activities would have to increase by 8.2 mil.

If 4.1mil is the correct figure, then over the 2 activities it shows a net profit of 33.33%, ie 3x profit.

If I've mis-remembered the 950k and it's 850k and no royalties, then the net profit % would be 3.85/(3.85+8.2) = 31.95%

 

[hibbo'sclass]

Fair questions, no problem. Will answer later when free of other things.

Could always just tell me to 'koff and ban me mate

 

[Efcjake]

Damo, I aint no suit wearing businessman, im just a gangsta I suppose, but even I can see how shocking the business deals are and ive only got a level 2 NVQ in Business Admin.

Sit back and enjoy the ride.

After looking back through the accounts today I wouldn't say the kitbag deal was shocking, if anything it was a good deal. We had been losing money from those operations and it was an increase on the value of the previous outsourcing deal. It also allowed us to get club shop in Liverpool one when we simply couldn't afford to open up a store and operate it at the time.


The problem is that taking the short-term profit option has affected our ability to facilitate growth and now 7 years on from the original deal we are left to wonder if we could have grown that source of income and produced a greater profit than Kitbag gave us as well as the missed opportunities we passed up on to grow the brand value of the club. Financially it was probably a good deal overall, but strategically as Esk says it has held us back and prevented us from potentially exploiting opportunities that might have been more beneficial (Howard's USA-fandom post-2014 World Cup comes to mind as an obvious one).

I can totally understand the position we were in when we made the deal and why it was seen as a good deal at the time, but as Esk says it is a completely different world for Everton now with completely different prospects and this is one area that we have an opportunity to capitalize on moving forward.

 

[Armaghtoffee]

I think that RM has known for a while that he was not going to be manager past the end of this season.
I think there may have been an agreement to let him finish the season and then leave quietly in the summer.
The last two games had changed the mood dramatically and I think that RM may have recognised that next Sunday had the potential to be a very bad day.
I cannot help but feel that the timing of his dismissal may have been with the agreement of RM.
The atmosphere on Sunday will be totally different now, however there are a couple of players who deserve polite applause at best because of their awful attitude in recent weeks.
I know they had lost confidence in the manager but from the outside and with no knowledge of what was happening on the training ground every day it looked unprofessional.

An understandable opinion which I too share. While the players may have lost faith in Martinez,they should not have lost faith in either the jersey or the fans. The Euros may also be playing a part and the fear of an injury meaning some of "our best squad from the 80s" are somewhat lacking in their endeavours. Unacceptable.

 

[Efcjake]

Putting it simply mate, if you assume flat 3mil from Kitbag and 950k (?) from Sodexo + a bit in royalties from Kitbag say 150k, the recognised profit in the accounts would be 4.1 mil which is included in turnover.

What the club are saying is that in order to achieve that level of profit, the turnover from those 2 activities would have to increase by 8.2 mil.

If 4.1mil is the correct figure, then over the 2 activities it shows a net profit of 33.33%, ie 3x profit.

If I've mis-remembered the 950k and it's 850k and no royalties, then the net profit % would be 3.85/(3.85+8.2) = 31.95%

Ahhh, I see what you meant now.

That's quite the profit margin for both of those activities, especially compared to 2007 which from what I can tell was only around 13%.

 

[The Esk]

Could always just tell me to 'koff and ban me mate

No, you are GOT's very own compliance officer. Think next time I post a financial post I'll run it by you lol

 

[Muggins]

Just referring back to the decision today to release Martinez - it's the clearest indication yet of the shift of power between the old guard and the new. I can't emphasise that enough.

It was a rather strange set of circumstances, but without Moshiri/Ryazantsev's leadership would never have happened. RM may be a nice guy, but he's tough and was well advised. Sometime soon perhaps we can go into more detail of what happened.

However the most important thing is that now Moshiri has a blank canvas - he can choose his manager, his manager can choose who he keeps and who goes, and how he spends the transfer funds provided by Moshiri this summer.

At the time of the AGM just 6 months ago we had a failing manager and a failing board with no alternative business plan or access to capital.

That's all changed, first actions witnessed today. It's going to be a summer like none we have ever experienced - enjoy

I think you're right Esk. As much as I feel crazy for believing we are going to bring in some quality players and a quality manager, how can he not?

It would be very bad for business not to.

 

[Mikeonlythebestwilldo]

No, you are GOT's very own compliance officer. Think next time I post a financial post I'll run it by you lol

Thanks Esk yeah you heard anything else with any big changes with us or is it a waiting game still ?

 

[hibbo'sclass]

Ahhh, I see what you meant now.

That's quite the profit margin for both of those activities, especially compared to 2007 which from what I can tell was only around 13%.

If I were a suspicious kind, I'd think that the figure of 8.2m is low - probably haven't bothered adding in additional costs to the catering calculation like proportion of rates, repairs and renewals, insurance and other things which are now absorbed in other operating costs.
This would have the effect of increasing the "perceived additional turnover" and reduce the net profit %.