Everton's finances look to be in a mess

[keverton]

When one looks at the RS who we were all laughing at because the bank may have taken them over, look now 20 mill plus for Suarez.

No way can we comptete with the likes of this. Come summer big names will have to go to balance the books that seems to be the likely outcome.

Without any capital coming in lets be honest with ourselves we are in a terminal decline. All we have are players and a poor stadium. If as Dave says about our credit rating dropping to high risk and we are having to deal on cash only terms this is really significant. It is the way Pompey went.

We have too few points to be able to stay in the PL if adminstration beckoned.

surely this can't be a real threat when you look at the assets we hold, ie Cahill, jags ,fellani, rodwell, arteta. The sale of rodwell alone would surely solve a lot of issues would it not. Again not sure as not financially savvy enough. Also not saying want to sell any of the above just saying worse case scenario with have options

 

[kenada_blue]

Only way it can be sorted out is if Kenwrong sells up to any chunter with a couple of mill so they can balance the finances. Non of this "needs to sell to the right person" balls. In fact, he'll have to because we cant go on like this another season because non of the board want to put anything in to get us out of the mess.

 

[fozzy]

[/B]

surely this can't be a real threat when you look at the assets we hold, ie Cahill, jags ,fellani, rodwell, arteta. The sale of rodwell alone would surely solve a lot of issues would it not. Again not sure as not financially savvy enough. Also not saying want to sell any of the above just saying worse case scenario with have options

yeah you are right imo about rodders ect.... but if we are in the ****e and HAVE to sell them then other clubs will just hold us over a barrel mate and get them cheaper!

 

[kenada_blue]

[/B]

surely this can't be a real threat when you look at the assets we hold, ie Cahill, jags ,fellani, rodwell, arteta. The sale of rodwell alone would surely solve a lot of issues would it not. Again not sure as not financially savvy enough. Also not saying want to sell any of the above just saying worse case scenario with have options

True. Selling of players will sort things out but thats taking us back to the Agent Johnson era again...

Which brings the point Davek made about the similarities between the two owners.

 

[Neiler]

Only way it can be sorted out is if Kenwrong sells up to any chunter with a couple of mill so they can balance the finances. Non of this "needs to sell to the right person" balls. In fact, he'll have to because we cant go on like this another season because non of the board want to put anything in to get us out of the mess.

That really would be bad for us mate IMO, a leavraged buy out would no doubt see us is massive trouble of Leeds style proportians, the current board made a massive mistake historicaly with the Prudential deal, not that they borrowed the money but they didnt borrow enough for me.

When people are talking about credit rating its worth noteing that, that owner dependent clubs have a worse rating then us historicaly, surpriseingly Newcastle, Chelsea, City, Villa.

 

[kenada_blue]

That really would be bad for us mate IMO, a leavraged buy out would no doubt see us is massive trouble of Leeds style proportians, the current board made a massive mistake historicaly with the Prudential deal, not that they borrowed the money but they didnt borrow enough for me.

When people are talking about credit rating its worth noteing that, that owner dependent clubs have a worse rating then us historicaly, surpriseingly Newcastle, Chelsea, City, Villa.

Only if the new owner went silly and started to spend millions on top of buying us out.

But someone taking over with more finances and better ability to find investment from other sources with a better line of credit would put us in a better position than Bill "Im broke as a joke" Kenwright.

End of the day...the RS were £400million in debt. They now are debt free (to a point unless the investors dump it back on the club) and are healthier.

We would only need a owner with a fraction of that to keep us finanically secure for years and without the needs to be spending millions.

There's no other way to balance the books at Everton unless we sell players.

 

[Neiler]

Only if the new owner went silly and started to spend millions on top of buying us out.

But someone taking over with more finances and better ability to find investment from other sources with a better line of credit would put us in a better position than Bill "Im broke as a joke" Kenwright.

End of the day...the RS were £400million in debt. They now are debt free (to a point unless the investors dump it back on the club) and are healthier.

We would only need a owner with a fraction of that to keep us finanically secure for years and without the needs to be spending millions.

There's no other way to balance the books at Everton unless we sell players.

We would still be in the same position mate unless someone was willing to wipe out the debt mate - even then our ability to make money as a buissness is limited without the obvious. The credit the club buys and not Bill, in actual fact Bill is proabably massively credit worthey his buissness have had their best year ever and are slowly creeping up behind Everton in terms of size and overall growth - just saying like. He would be mad to borrow privately to put money into the club, but in theory he could.

Hes not quite as skint, as many think.

 

[davek]

We would still be in the same position mate unless someone was willing to wipe out the debt mate - even then our ability to make money as a buissness is limited without the obvious. The credit the club buys and not Bill, in actual fact Bill is proabably massively credit worthey his buissness have had their best year ever and are slowly creeping up behind Everton in terms of size and overall growth - just saying like. He would be mad to borrow privately to put money into the club, but in theory he could.

Hes not quite as skint, as many think.

I beg your pardon? Isn't this the reason why he's tolerated: because he'd open a vein up for Everton and 'he might not be a billionaire, but he's better than possible replacements who'll just borrow and not invest'?

Mate, you really are turning yourself inside out trying to defend this shower of chancers.

 

[Nordecke]

I can't figure how European football will stay afloat..

I have come to understand and appreciate the salary cap.

 

[harry]

people have been saying for years that it would come to this under keenwright with all the borrowing etc. it isn't really a surprise.

EFC are run like an amature club from top to bottom.

 

[jceverton]

Found this information relating to companies credit rating.

What is the Risk Score?

The risk rating predicts the likelihood of a company becoming insolvent within the next 12 months.
Score definition where Accounts are filed
71-100 Very Good Credit Worthiness
51-70 Good Credit Worthiness
30-50 Credit Worthy
21-29 Credit Against Collateral
0-20 Caution - Credit at your discretion
No Rating Financial Statements are too old

Based on this would seem very worrying to have fallen from 30/100 to 12/100

 

[davek]

Found this information relating to companies credit rating.

What is the Risk Score?

The risk rating predicts the likelihood of a company becoming insolvent within the next 12 months.
Score definition where Accounts are filed
71-100 Very Good Credit Worthiness
51-70 Good Credit Worthiness
30-50 Credit Worthy
21-29 Credit Against Collateral
0-20 Caution - Credit at your discretion
No Rating Financial Statements are too old

Based on this would seem very worrying to have fallen from 30/100 to 12/100

In basic terms, that means that if you're a football club chairman you keep a whistle by the phone in case you get a cold call from Bill Kenwright.

 

[jceverton]

In basic terms, that means that if you're a football club chairman you keep a whistle by the phone in case you get a cold call from Bill Kenwright.

Unfortunately I think that about right and from that it would also seem that we have to sell players to stave off administration. Given that expect the like of Fellaini to go in the summer.

 

[davek]

Unfortunately I think that about right and from that it would also seem that we have to sell players to stave off administration. Given that expect the like of Fellaini to go in the summer.

We're looking at Everton 4.0 in the summer mate. We're selling off all the senior squad and going with a score of Romanian orphans. It's a crazy plan but it might just work.

 

[Neiler]

I beg your pardon? Isn't this the reason why he's tolerated: because he'd open a vein up for Everton and 'he might not be a billionaire, but he's better than possible replacements who'll just borrow and not invest'?

Mate, you really are turning yourself inside out trying to defend this shower of chancers.

Thats your stuff mate, not mine. Wanna jump up on the soap box of you go!