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ECHO Comment: "Fears of Witch-hunt Against Liverpool FC" part 3

EverTheOptimist said:
The revenue gap between both clubs before Covid was almost £350 million, £189 million to £533 million, and it was an even bigger gap in the last results posted during Covid.

You are getting way ahead of yourself, Unless you are actually Usmanov and have decided to sponsor Goodison for £400 million a season.

They just snagged Man United's Commercial Director as well, who'd been in the job when Woodward left the role to be Chief Executive.
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Just koff back to rawk ffs… you’re fooling nobody here you melt
 

catcherintherye said:
Microsoft are a big company yes. Something of an exception, and actually I'm very pro Microsoft (despite lots of analysts writing them off). Most think they will be overtaken over the next 10-15 years though. Tech is a bit of an exception though (due to huge margins). Go and look at the top 30 companies in 1990, and how many of them are in the top 30 now.

As for 2005. Arsenal were the best team in the league. They havent won it since and are currently 19th. City were still un the championship, they are now the dominant team. Italian teams dominated the CL, they are now also rans. Liverpool have gone from 4th, to 2nd, and then nearly went bankrupt before re building again.

The one certainty of life and sport is things change. It's actually very hard to stay at the top for prolonged periods. I sense Chelsea and City will manage it while they have shareholder investment. United have huge cash reserves. Outside of that, not really sure on the rest.
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United's cash reserves are entirely funded by debt. They publish their interim reports quarterly. In the last quarter they had to draw down £60m of their revolving credit facility.

That is almost a quarter of a billion pounds per year. They also have credit notes with an average repayment date of 2025 that amount to £455m.

Amidst that horrific background they still have to pay shareholders a dividend.
 
gwladysnight said:
United's cash reserves are entirely funded by debt. They publish their interim reports quarterly. In the last quarter they had to draw down £60m of their revolving credit facility.

That is almost a quarter of a billion pounds per year. They also have credit notes with an average repayment date of 2025 that amount to £455m.

Amidst that horrific background they still have to pay shareholders a dividend.
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Yes fair point. Are we saying the 300m or so cash reserves that wasnt singularly debt have been used up over the last 18 months?

The broader point you make is a really good one too, and why turnover as a singular metric is limited. Their turnover is fantastic, and has been for well over 20 years, but given the debt repayments due you do wonder if eventually it will catch them out?

I completely understand that the discourse around football is that these things dont matter. Debt, profit etc have no relevance and only turnover does. To me that's like saying you dont believe in gravity because some experts tell it doesnt matter. In the end, over longer periods once the hype subsides, key fundamentals win out.

I'm not saying its inevitable United (or Liverpool) get caught out, but it's also not inevitable they just keep going for the next 20 years. There comes a saturation point in most sectors where you monetise what you can, and turnover growth becomes far less important. I do wonder if football is close to that point (if it is unable to really conquer the US market)?
 

EverTheOptimist said:
The revenue gap between both clubs before Covid was almost £350 million, £189 million to £533 million, and it was an even bigger gap in the last results posted during Covid.

You are getting way ahead of yourself, Unless you are actually Usmanov and have decided to sponsor Goodison for £400 million a season.

They just snagged Man United's Commercial Director as well, who'd been in the job when Woodward left the role to be Chief Executive.
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LFC will likely always have higher revenues than EFC for the foreseeable but that means little if FFP changes allow Everton to spend more as lets face it FSG have little desire to bankroll the Kopites.

I would say Covid & the ESL plans have forced UEFA's hands into changing profit/loss system to a salary cap for two reasons:

1. Covid has left most of european clubs skint and needing investment to keep the wheel turning

2. ESL clubs have shown they will always try a power grab in future so leaving the rest of the clubs with little financial power will only hurt UEFA should the ESL clubs end up moving down the line.
 


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