Everton Annual Accounts Report 2012/2013

[davek]

I'd be quite curious to know how weve knocked 5mill off the mysterious other operating costs

Where has that significant saving been made and where has it gone? Obviously the debt and interest payment remain constant; wages fell slightly so it didn't go there. We didn't use more money on fees to buy players.

That is a mystery to be sure.

 

[D410]

So the club have released the Fin report just before Bobby,s press conferance.

Oh Bobby lad, Welcome to the real Everton.

No strikers for a month and the back four on saturday, with an FA cup game round the corner.

 

[Big Fat Sam]

As for the comparisons with others, who exactly are we compared to? Is it the Man City who announced a £50 million loss recently? Or the Chelsea that announced a loss of £49 million?

In terms of transfers we're probably best comparing ourselves with an average Championship team for cost, and with middle-of-the-league Premiership for wages.

In terms of sponsorship and corporate, we must be competing with the lowest in the division.

All that, and Bill has the audacity to tell the world how Martinez promised him the Champions League.

 

[Bruce Wayne]

Elstone explained this high % as a result of the way the club accounts for its cost base: they leave out catering and retail turnover so the ratio looks larger. When, as other clubs calculate it, they put them in the % of wages drops to 70%.

70% is still very high Dave. To put this into perspective, the only club that is above us in the league that is spending more of their turnover on salaries than we are is Man City.

 

[davek]

So the club have released the Fin report just before Bobby,s press conferance.

Oh Bobby lad, Welcome to the real Everton.

No strikers for a month and the back four on saturday, with an FA cup game round the corner.

I think this is what Moyes meant when he said he'd learn how they work.

 

[davek]

70% is still very high Dave. To put this into perspective, the only club that is above us in the league that is spending more of their turnover on salaries than we are is Man City.

I think we place more of an emphasis on tieing existing playing staff up on bigger and longer contracts. I dont know that for certain, but it feels that way.

 

[ToffeeDan]

Cahill £1M - NBV £nil - Profit £1M
Yobo £2M - NBV £nil - Profit £2M
Rodwell £12M (plus) - NBV £Nil - Profit £12M (plus)

Current Season

Anichebe £5M - nbv Nil - Profit £5m
Fellaini £27.5M - NBV £NIL (5 year contract 2008) - all amortised - Profit £27.5M
Jelavic £5.5m - nbv £3m (approx) - Profit £2.5M

profit on transfers out 13-14 (to date) circa £35M

Current playing squad approximate Amortisation

(assumes 5 year contract)
Heitinga £1.2M (5th season, therefore if we receive a fee IRO £1M - BREAK EVEN)
Gibson £0.5M
Pienaar £1M
Mirallas £1.2M
Oviedo £0.3M
Stones £0.1M

Kone (£6M), McCarthy (£13M) - approx £4M

Total Amortisation current season - IRO £8.3M (last season £10.6M - see accounts, would have been last 1/5th of Fellaini (circa £2.4M) and 1/5th Jelavic (circa £1.2M) less the £4M shown this season for Kone, McCarthy plus other bits and pieces built into the contracts - signing on fees etc)

We have a squad with an NBV circa £40-42M with the 2 new acquisitions - as we all know their realisable value is far greater (but not shown on the books for GAAP - Generally Accepted Accounting Principles)

 

[swisso]

Overdraft reduces from £11m to £2.3m

Sharp rise in the loans though!

 

[Allezfan]

70% is still very high Dave. To put this into perspective, the only club that is above us in the league that is spending more of their turnover on salaries than we are is Man City.

But if you look at the actual figure of the wage bill. It is less than what the majority of the league pay.

That has to hurt us, in the same way that the way our transfer outlet is the lowest in the league hurts us.

It's great that we're making more money and spending less on ooc, it really is, but we need to spend more on the pitch.

The fact we're earning more money and yet spending less on wages and less on transfers doesn't thrill me.

 

[Bruce Wayne]

In terms of transfers we're probably best comparing ourselves with an average Championship team for cost, and with middle-of-the-league Premiership for wages.

In terms of sponsorship and corporate, we must be competing with the lowest in the division.

All that, and Bill has the audacity to tell the world how Martinez promised him the Champions League.

Let me get this straight. In terms of operating profit, we by and large break even each year at best, or make a loss. Other than player trading therefore, where on earth is money going to come from to buy players?

On wages, as I mentioned in my previous post, we spend a greater proportion of our income on salaries than any team in the top half of the table except Man City, who are clearly an outlier.

I'm baffled, I really am. Of course we could do more to raise money, but rest assured, a big chunk of that would come through higher ticket prices. Man Utd and Arsenal earn roughly 10 times what we do on matchday revenue. Given that their grounds are less than twice ours, a significant portion of that must come from considerably higher ticket prices.

Could just imagine the uproar if Bill tried to raise prices.

 

[davek]

These figures are pre the 25M or so extra tv deal and the Fellaini/Anichebe (and obviously Jelavic) incoming cash. Best to bear that i mind in terms of activity in this current (and indeed the last) window.

 

[mooseatingnome]

So the club have released the Fin report just before Bobby,s press conferance.

Oh Bobby lad, Welcome to the real Everton.

No strikers for a month and the back four on saturday, with an FA cup game round the corner.

there is no good time to release the report for tin foil hat wearers like yourself. You would still dream up some scenario where Bill was evil and stealing your cookies.

 

[ToffeeDan]

Basically if we do nothing in the remainder of the season but stay where we are (in the league) and buy no-one we're on target for a whopping profit - which massively reduces our negative balance sheet and sets us in the right direction - for once. If the cash flow (from transfers basically) is nice and solid we can probably invest in a couple of decent players in the summer.

 

[Maxwell]

So basically we're doing alright.

Sound.

 

[Bruce Wayne]

But if you look at the actual figure of the wage bill. It is less than what the majority of the league pay.

That has to hurt us, in the same way that the way our transfer outlet is the lowest in the league hurts us.

It's great that we're making more money and spending less on ooc, it really is, but we need to spend more on the pitch.

The fact we're earning more money and yet spending less on wages and less on transfers doesn't thrill me.

Of course but the world isn't absolute, it's relative. We don't have the cash to blow another 10 or 20 million on player wages. I don't think anyone would argue that spending more on wages would help us, but where is that money going to come from?

No doubt when the tv money arrives, that will see another jump in salaries, but that jump will be seen across the PL, so relatively we'll be no better off, unless we spend that money more wisely, which has historically been the case, hence why we achieve more than our wealth suggests we should.