Everton Annual Accounts Report 2012/2013

[Dymak]

None of these figures include the new TV money, which will see our revenue increase by circa 30 million pounds.

The accounts document a scenario that took place before our income increased by circa 30 million, and it turns out we were making a profit before player sales after all expenditure was taken into account, including the servicing of debt. No wonder Bobby has been stating we are in a good financial situation.

The increase in revenue is nearly 50% of the cost of the Tesco Dome, so I expect another crazy new stadium initiative to be on the horizon.

 

[CahillsCornerFlag]

Just picking up on wages, I take it this doesn't include getting Moyes (top earner) Fellaini (second top earner) Jelavic (£40k p/w) and Heitinga (£50k p/w) off the wage bill? If so, that makes our wage bill for next year look promising.

Even assuming Baines goes up to Fellaini's old £75k p/w, and Barry signs for a similar amount, we'll still about 100k p/w in hand.

 

[roydo]

I am no accountant, but football accounts dont really tell the same story re "profit" on player sales do they?

Like the Fellaini money will be paid over 3 years or so in all likelyhood, so there wont be an extra £12m in the accounts next year for example.

Or am I tilting at windmills?

 

[Bruce Wayne]

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.

Dan, those balance sheet figures don't mean we have £30 million in cash to spend though do they? That's just an accounting thing, like when companies make huge 'losses' due to writing down the cost of a purchase. They haven't really lost anything.

 

[chewee]

Just picking up on wages, I take it this doesn't include getting Moyes (top earner) Fellaini (second top earner) Jelavic (£40k p/w) and Heitinga (£50k p/w) off the wage bill? If so, that makes our wage bill for next year look promising.

Neville was another big earner, although to be fair Barry and Lukaku must be picking up a few shillings

 

[davek]

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.

Bruce, the proportion of wages to revenue is going to come down in future (it's plateaued out now at Everton it seems). There's an agreed cap, it's not a runaway train. The CEO isn't seeing it as a concern and the extra tv revenue is going to bring the ratio down in any case.

As I said above, we have the extra cash now and these figures dont include the cash coming in from the surplus in player sales from the latest two windows.

The money is there to buy players. It's like the manager says. So why in an injury crisis isn't he moving....at all...to fill gaping holes in the squad?

 

[Allezfan]

None of these figures include the new TV money, which will see our revenue increase by circa 30 million pounds.

The accounts document a scenario that took place before our income increased by circa 30 million, and it turns out we were making a profit before player sales after all expenditure was taken into account, including the servicing of debt. No wonder Bobby has been stating we are in a good financial situation.

Yeah, you could kind of hope, given that situation we might be able to actually spend all the money we earn in transfer fees.

Maybe, one day.

 

[ToffeeDan]

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.

Man U 74,000 (typical)
Arsenal 60,000
Everton 37,000 (typical)

Ticket prices (100 = Everton)
Arsenal 250
Man U 120
Everton 100

So on PL match revenue alone - Arsenal 400 Man U 240 Everton 100 (Everton = 100)

Champions League Revenue
Arsenal YES
Man U YES
Everton NO

Hospitality - Corporate
Arsenal BIG BIG YES
Man U BIG YES
Everton not really

When you factor in all that - and the 5-6 CL games are worth significant revenues that's why we're far behind them.

 

[Bruce Wayne]

I am no accountant, but football accounts dont really tell the same story re "profit" on player sales do they?

Like the Fellaini money will be paid over 3 years or so in all likelyhood, so there wont be an extra £12m in the accounts next year for example.

Or am I tilting at windmills?

That's it I guess, we just don't know how these deals are structured. Some may have performance fees built in (ie a bit of the Jelavic fee is based on Hull staying up). You know? We just don't know, which makes it maddening how people can make cast iron statements either way.

 

[Bruce Wayne]

Just picking up on wages, I take it this doesn't include getting Moyes (top earner) Fellaini (second top earner) Jelavic (£40k p/w) and Heitinga (£50k p/w) off the wage bill? If so, that makes our wage bill for next year look promising.

Even assuming Baines goes up to Fellaini's old £75k p/w, and Barry signs for a similar amount, we'll still about 100k p/w in hand.

Don't forget Coleman has a new deal. Barkley also. These are just off the top of my head.

 

[davek]

None of these figures include the new TV money, which will see our revenue increase by circa 30 million pounds.

The accounts document a scenario that took place before our income increased by circa 30 million, and it turns out we were making a profit before player sales after all expenditure was taken into account, including the servicing of debt. No wonder Bobby has been stating we are in a good financial situation.

The increase in revenue is nearly 50% of the cost of the Tesco Dome, so I expect another crazy new stadium initiative to be on the horizon.

Needs to be hammered home, because it is highly relevant to the present window.

 

[Allezfan]

Just picking up on wages, I take it this doesn't include getting Moyes (top earner) Fellaini (second top earner) Jelavic (£40k p/w) and Heitinga (£50k p/w) off the wage bill? If so, that makes our wage bill for next year look promising.

Even assuming Baines goes up to Fellaini's old £75k p/w, and Barry signs for a similar amount, we'll still about 100k p/w in hand.

Our top earners last year were Fellaini 1st, Moyes 2nd and Neville and Heitinga joint 3rd, I think.

So yeah we should have saved the money we're giving to our new players and ones on new contracts without having to increase the wage bill by too much.

 

[ToffeeDan]

I am no accountant, but football accounts dont really tell the same story re "profit" on player sales do they?

Like the Fellaini money will be paid over 3 years or so in all likelyhood, so there wont be an extra £12m in the accounts next year for example.

Or am I tilting at windmills?

Profit keeps the creditors happy (bank), Cash Flow keeps the creditors and the club happy (means we can dish out the money to invest in players etc) so yes the money may not flow in immediately but it still enables the club to use that money (if necessary by borrowing) at some point.

 

[Bruce Wayne]

Man U 74,000 (typical)
Arsenal 60,000
Everton 37,000 (typical)

Ticket prices (100 = Everton)
Arsenal 250
Man U 120
Everton 100

So on PL match revenue alone - Arsenal 400 Man U 240 Everton 100 (Everton = 100)

Champions League Revenue
Arsenal YES
Man U YES
Everton NO

Hospitality - Corporate
Arsenal BIG BIG YES
Man U BIG YES
Everton not really

When you factor in all that - and the 5-6 CL games are worth significant revenues that's why we're far behind them.

Exactly. Man Utd and Arsenal both peaked at the right time and used the PL gravy train to invest in their stadia, to the extent that both now make a huge amount of money that can be spent on the team. They don't need sugar daddies.

 

[ToffeeDan]

There IS a new stadium on the agenda - it was mentioned at the Shareholders Meeting. So if the TV revenue is massively increased, we've made a handy profit on player trading and shifted out the high earners (Fellaini, Heitinga, Moyes, Neville) it's looking very good for us.. and perhaps the CEO has been taking care of things the past few years. Of course in order to compete with everyone else we need to move forward and not stand still.