( Only for us)...
( Only for us)...
My take on our our PSR position and transfer funds heading into the 1st of July is this.
Our 4 year rolling cycle is as of 2024 was:
2019/20 – £139.8 million loss
2020/21 – £121.0 million loss
* Averaged for covid = 130.4 mill loss
2021/22 – £38.3 million loss
2022/23 – £89.1 million loss
23/24 -£59 mill loss.
*Genreally you can knock £25 mill a year in allowable PSR deductions from the above losses to get your PSR loss.
We were compliant for the last three cycle - so we know if we've made a PSR less then £38.3 mill we will be PSR compliant for this season. You can see the overall trend of improvement.
Ultimately the business though moving in the right direction is still loss making and likely will be again this year, this is mainly due to the hangover in costs and high level interest by the last regime and half a year run by the old regime - the business is still hugely loss making. The figures above aren't arbitrary- even with significant losses the business has had to do some huge heavy lifting. For example to post a each of the three losses above we have had to sell £10 of millions of players - to post a £59 mill loss we had to sell close to £40 mill worth of players. So the business is still going to loose a lot of money for the next few years.
On the plus side - the club will move to the new ground, will have increased revenue, should see it swages and ammonization bill drop and may see the benefit of improved finishing prize money in the PL and an improvement in commercial deals - the club pre TFG anticipated a rise in revenue of £40 mill a year in the new ground, maybe an additional £20-£30 + mill in cost reduction which could see our annual revenue jump from £190 mil to close to £250 mill - this would have us on a par with the likes of WHU, Villa and Newcastle depending on the year.
In summary we are likely still loss making - however we are going to get a big bump in revenue which will have us close to breaking even - but its not the immediate panacea many think it will be.
So where will the transfer money come from.
Three sources really:
1) You raise it yourself: Sell players or make a profit.
2) Take on debt: Loans
3) Owner investment - more difficult to do now with shareholder loans and regulations.
1) We have very few sellable assets - Branthwaite is one - but it very much looks like he is staying, there fore unless its a Pickford leaving i don't see where we could get decent sums for the work we have to do - Garner, Myko and McNeill would be PSR friendly sales. Pickford to - but we would hardly keep Branthwaite and do that
2) We could take on debt - this is something we have been no stranger to in the past, but we already hold significant debt.
3) Owner investment/Shareholding loans: This is where i think the majority of our investment may come from - we are going to have to be creative in how we do this - a new rules have come in in regard to shareholder loans - but as it seems Branthwaite is now staying, money will have to be brought into the club - below is a history of the investment made in AS Roma since TFG have been there, which shows the commitment to investment - its important to note that Roma were actually in a worse financial position to us when they took over.
If you have been following the boring financial stuff this year, you will have noticed that Roundhouse the holding company of Everton shares for TFG have restructured our debt, opened new lines of credit with reputable lenders and found inverters to invest capital in Roundhouse - so while Everton may not have a lot of money and is loss making its holding company is likely very liquid with cash - the trick for TFG is going to be getting it from Roundhouse into Everton and comply with relegation.
They obviously have a plan so I'm going to fascinated to see how they do it - its likely we wont know for another 12 months.
So in summary i think our position ome 1st of July is - we should be PSR compliant this year, we will still be a significant loss making business, we will make additional revenue with the new ground - but given our last loss is 59 mill (even after raising £40 mill player sales), its going to take a while before we dig ourselves out of the loss making hole, despite costs likely coming down again this year. It seems TFG has made a decision not to sell its best player - Branthwaite - which is huge as that £80 mill fixes and fund a lot of the work we need to do in the next financial year. So ultimately it seems to me that TFG are going to have to somehow get money from Roundhouse into Everton football club to fund the work that need to be done this summer and ongoing - how they do that and comply with regulation is going to be interesting, we know it possible when you see what Chelsea, City and Utd have done in terms of PSR compliance. we are going to have to be careful. Over to you Dan.
Our 4 year rolling cycle is as of 2024 was:
2019/20 – £139.8 million loss
2020/21 – £121.0 million loss
* Averaged for covid = 130.4 mill loss
2021/22 – £38.3 million loss
2022/23 – £89.1 million loss
23/24 -£59 mill loss.
*Genreally you can knock £25 mill a year in allowable PSR deductions from the above losses to get your PSR loss.
We were compliant for the last three cycle - so we know if we've made a PSR less then £38.3 mill we will be PSR compliant for this season. You can see the overall trend of improvement.
Ultimately the business though moving in the right direction is still loss making and likely will be again this year, this is mainly due to the hangover in costs and high level interest by the last regime and half a year run by the old regime - the business is still hugely loss making. The figures above aren't arbitrary- even with significant losses the business has had to do some huge heavy lifting. For example to post a each of the three losses above we have had to sell £10 of millions of players - to post a £59 mill loss we had to sell close to £40 mill worth of players. So the business is still going to loose a lot of money for the next few years.
On the plus side - the club will move to the new ground, will have increased revenue, should see it swages and ammonization bill drop and may see the benefit of improved finishing prize money in the PL and an improvement in commercial deals - the club pre TFG anticipated a rise in revenue of £40 mill a year in the new ground, maybe an additional £20-£30 + mill in cost reduction which could see our annual revenue jump from £190 mil to close to £250 mill - this would have us on a par with the likes of WHU, Villa and Newcastle depending on the year.
In summary we are likely still loss making - however we are going to get a big bump in revenue which will have us close to breaking even - but its not the immediate panacea many think it will be.
So where will the transfer money come from.
Three sources really:
1) You raise it yourself: Sell players or make a profit.
2) Take on debt: Loans
3) Owner investment - more difficult to do now with shareholder loans and regulations.
1) We have very few sellable assets - Branthwaite is one - but it very much looks like he is staying, there fore unless its a Pickford leaving i don't see where we could get decent sums for the work we have to do - Garner, Myko and McNeill would be PSR friendly sales. Pickford to - but we would hardly keep Branthwaite and do that
2) We could take on debt - this is something we have been no stranger to in the past, but we already hold significant debt.
3) Owner investment/Shareholding loans: This is where i think the majority of our investment may come from - we are going to have to be creative in how we do this - a new rules have come in in regard to shareholder loans - but as it seems Branthwaite is now staying, money will have to be brought into the club - below is a history of the investment made in AS Roma since TFG have been there, which shows the commitment to investment - its important to note that Roma were actually in a worse financial position to us when they took over.
If you have been following the boring financial stuff this year, you will have noticed that Roundhouse the holding company of Everton shares for TFG have restructured our debt, opened new lines of credit with reputable lenders and found inverters to invest capital in Roundhouse - so while Everton may not have a lot of money and is loss making its holding company is likely very liquid with cash - the trick for TFG is going to be getting it from Roundhouse into Everton and comply with relegation.
They obviously have a plan so I'm going to fascinated to see how they do it - its likely we wont know for another 12 months.
So in summary i think our position ome 1st of July is - we should be PSR compliant this year, we will still be a significant loss making business, we will make additional revenue with the new ground - but given our last loss is 59 mill (even after raising £40 mill player sales), its going to take a while before we dig ourselves out of the loss making hole, despite costs likely coming down again this year. It seems TFG has made a decision not to sell its best player - Branthwaite - which is huge as that £80 mill fixes and fund a lot of the work we need to do in the next financial year. So ultimately it seems to me that TFG are going to have to somehow get money from Roundhouse into Everton football club to fund the work that need to be done this summer and ongoing - how they do that and comply with regulation is going to be interesting, we know it possible when you see what Chelsea, City and Utd have done in terms of PSR compliance. we are going to have to be careful. Over to you Dan.
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Gwladys St. Glory
Grumpelicious middle-aged git
Men will put off their colonoscopy for years yet can't wait 2 days for a key transfer date to see results.
vintage-toffees
Player Valuation: £10m
Yes a decent budget
But it can’t be spent as freely as we want it will be spent sensibly over the next 3 windows each one improving us as a squad and option to better level players
But it can’t be spent as freely as we want it will be spent sensibly over the next 3 windows each one improving us as a squad and option to better level players
Melt
Thanks mate
No Problem,Big fan of your work by the way.
No pension day
Yes sitting here in my armour plated chair
Drico
Player Valuation: £60m
I bet you wear a yellow tie.
Dawn storm
You angel headed hipster you
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