Financial Fair Play investigation

[Marius57]

It’s so so with Blue Heaven Holdings. It is the majority shareholder in the club. Its majority shareholder is Moshiri. In effect we are reliant on Moshiri if we get relegated.

Ah ok that makes sense. Less fun than having Uncle Uzzy though.

By the way that reads, he didn’t sound overly convincing that he would bail us out. “indicated they are supportive”

 

[catcherintherye]

It is over 132m above the 105m threshold, not 25m

No it's not. After the previously accepted write downs are made anyway.

 

[catcherintherye]

I like that reasoning.

I suspect in the long run when they conclude it'll be a massive fine + suspended points deduction based on what happens 'going forward'.

They know we are back into profit next year, so basically fine for the next 2-3 years. It's an easy win.

 

[indieman1]

Not many rays of sunshine in those accounts. This FFP distraction to one side, our cost and income fundamentals aren't showing much sign of improvement on the scale required to get us genuinely sustainable.

Wages to turnover is at least getting better.

The income side is just annoying. Falling ever further behind those we aspire to compete with and no real sign of a plan to bridge that gap aside from the obvious at BMD.

Going concern notes don't get much more scathing than that without necessitating a change in accounting basis.

 

[Villa_Fan]

Some things I've taken away

• Wages to turnover dropped from 95 to 90%
• We paid Benitez and staff 10.5 million
• We pulled in 15.4 million in gate receipts but apparently 10.8 million of the famous "Other Operating Costs" are due to the stadium being open to fans?
• We've cut the amount we're losing on writing off player contracts from 81 million to 68 million.
• Despite losing the USM and Megafon deals the commercial and sponsorship revenue stayed about the same.
• Broadcasting dropped a bit because the last year was inflated due to the extra games in the financial period from the covid postponements.
• "Other Commercial Activities" increased by about 4 million, I'm assuming Florida Cup?
• Wages/staff costs dropped by 20 million (This would include the pay cut from Ancelotti to Benitez and losing James)
• Looks like they made sure to point out that Brands was the highest paid director with 2 million last year and the next highest now is getting just under 900k, overall director pay dropped from 4.2 to 3 million
• 168 million spent on the stadium by July 2022

Also just want to point out to @4737carlin Bill Kenwright signs off on these accounts.

10.5m for Benitnez is pretty galling when u think of it and I assume Frank's bill will be similar

 

[davek]

Auditors must add any risks to the report so you are right it is fairly normal. The underlying message in the statement, imo, is that it is saying EFC does not have funding agred to continue stadium development if they are relegated.

The PL and their commission have a choice to make: punish Everton and destroy a club or (in the event we stay up this season) keep Everton on a short leash and allow the stadium to be complete.

Imagine being the PL and this 'independent' commission delivering a judgement that sinks one of the biggest names in English football. I cant imagine that was part of the plan when they insisted on FFP.

 

[brieverton]

Will they all just resign?

What a catalogue of failure, on the pitch, off it, everywhere.

Grotesque.

 

[catcherintherye]

10.5m for Benitnez is pretty galling when u think of it and I assume Frank's bill will be similar

I'm defensive of the club, but that figure will be staggered. No sympathy for them on that IMO.

 

[Villa_Fan]

My point is you personally didnt deduct them. They were deducted by accounting professionals.

what is the point of highlighting that? Do you not see that is inherent in posting financial results? Do you think I am claiming that I came up with the numbers? The numbers I posted had the total loss and then using Excel I personally added the Covid losses and I substracted them from the total losses.

 

[catcherintherye]

It is over 132m above the 105m threshold, not 25m

Unfortunately, not correct.

For those reading, we appear to be around 25m over. Around 20% over.

 

[davek]

They know we are back into profit next year, so basically fine for the next 2-3 years. It's an easy win.

I think it should only be a fine mate; I just think in this climate of the politicisation of the PL there'll be some OTT punishment. Maybe that's a huge fine or a squad cap or whatever. There should never be points deductions on the table. That's just the desperate howls from club's who aren't good enough to stay up in the PL regardless of how much Everton have spent.

 

[James]

Ah ok that makes sense. Less fun than having Uncle Uzzy though.

By the way that reads, he didn’t sound overly convincing that he would bail us out. “indicated they are supportive”

It doesn’t read well but ultimately the auditors can only take into account legally binding funding when making the going concern assessment. That would mean Moshiri needs to put in equity or debt now - which he clearly won’t do.

Moshiri could decide to support us if we go down but as it’s not a legal commitment, the accounts still have to set out the risk.

 

[catcherintherye]

what is the point of highlighting that? Do you not see that is inherent in posting financial results? Do you think I am claiming that I came up with the numbers? The numbers I posted had the total loss and then using Excel I personally added the Covid losses and I substracted them from the total losses.

The point was you didnt personally deduct the costs. You don't have the authority to do so.

 

[Villa_Fan]

I'm defensive of the club, but that figure will be staggered. No sympathy for them on that IMO.

I agree it will be staggered and if he gets another job I am sure the staggered payments will stop but 10m is a big wedge for someone who wasn't exactly at the helm for long

 

[kenada_blue]

10.5m for Benitnez is pretty galling when u think of it and I assume Frank's bill will be similar

Agent Benitez