Everton (& rest of EPL) Finances in real terms

[The Hibbert Agenda]

Attached is the link to recent SwissRamble article on Prem League finances:
http://swissramble.blogspot.ch/2013/04/show-me-money.html

Quite interesting stuff in general, and nicely summarizes just how badly functioning EFC's financial model is

Everton made a loss of £9 million from revenue of £81 million and a wage bill of £63 million (10th highest in the Premier League). The operating loss of £19 million was improved by adding back £14 million of player amortisation and depreciation less a working capital adjustment of £2 million, giving a negative cash flow from operating activities of £7 million.

Everton’s need to box clever is highlighted by the fact that even after net player receipts of £11 million (sales £23 million, purchases £13 million), they do not quite manage to break-even with negative cash flow after financing of £2 million. All other things being equal, they need to sell a player every season to stay afloat.

This is due to £4 million interest payments and £0.9 million repayment on assorted loans. The club’s debt stands at £49 million with an £11 million overdraft plus £24 million loan notes (borrowed against future season ticket sales) and £14 million loans (borrowed against future TV money). The lending arrangements with Barclays Bank expire on 31 July 2013, so these will have to be renegotiated in a few months.

 

[Allezfan]

Honestly it is deeply scary that we pay only the tenth biggest wages in the Pl and it's still more than we can afford (as a percentage of our profit).

Wages, more than anything else, dictate how successful your team is. If you can't pay the same wages as other clubs you don't get good players and you don't keep good players. When our wage bill is far too high and yet we're still being outspent by 9 other clubs it makes it really hard to compete at the top end of the table.

 

[kenada_blue]

Honestly it is deeply scary that we pay only the tenth biggest wages in the Pl and it's still more than we can afford (as a percentage of our profit).

Wages, more than anything else, dictate how successful your team is. If you can't pay the same wages as other clubs you don't get good players and you don't keep good players. When our wage bill is far too high and yet we're still being outspent by 9 other clubs it makes it really hard to compete at the top end of the table.

It's why we had the cull last season. Arteta, Saha, Pienaar etc all 60k+ a week gone.

 

[sheeds]

Honestly it is deeply scary that we pay only the tenth biggest wages in the Pl and it's still more than we can afford (as a percentage of our profit).

Wages, more than anything else, dictate how successful your team is. If you can't pay the same wages as other clubs you don't get good players and you don't keep good players. When our wage bill is far too high and yet we're still being outspent by 9 other clubs it makes it really hard to compete at the top end of the table.

It is worrying & again points to the lack of structure or plan. The fact we have a small squad is important to consider as the fringe players who often pad the bench or at least the squad will be on relative pennies so big money is being paid to a small (ish) core squad .

 

[BiggyRat]

What's Pienaar on now kenada?

 

[tasslehoff]

Everton’s need to box clever is highlighted by the fact that even after net player receipts of £11 million (sales £23 million, purchases £13 million), they do not quite manage to break-even with negative cash flow after financing of £2 million. All other things being equal, they need to sell a player every season to stay afloat.

Can everyone stop moaning now. It's there in black and white, we are doing miles better than we should be based on our finances..

 

[The Hibbert Agenda]

Can everyone stop moaning now. It's there in black and white, we are doing miles better than we should be based on our finances..

Agreed.
And Moyes has done a fantastic job.

But for the future of our club this model just doesn't work. It makes no sense.
I really do hope that Moyes is going to show some ambition and has set an ultimatum requiring more finances for himself for him to stay.
Unfortunately I'm almost entirely certain that if financing arrives it will be done at the club's wellbeing at stake and not by restructuring the financial model of the club.

 

[Tubey]

Attached is the link to recent SwissRamble article on Prem League finances:
http://swissramble.blogspot.ch/2013/04/show-me-money.html

Quite interesting stuff in general, and nicely summarizes just how badly functioning EFC's financial model is

That doesn't tally with what Robert Elstone said.

Well, it sort of does, but not in those terms. We don't automatically have to sell a player every season to break even.

 

[kenada_blue]

What's Pienaar on now kenada?

I dunno. Foxy or Sheeds might.

But Spurs paid him something like £70k a week. We might have dropped it back to £55-60k

 

[BiggyRat]

I dunno. Foxy or Sheeds might.

But Spurs paid him something like £70k a week. We might have dropped it back to £55-60k

Ok. Genuine question. Didn't know if he was getting more or less.

 

[D410]

That doesn't tally with what Robert Elstone said.

Well, it sort of does, but not in those terms. We don't automatically have to sell a player every season to break even.

I thought everyone knew that when we sell a player it,s not because we need to pay back the loans but becuase we have lost a very dear part of our family unless of course they don,t play ball and they are in fact a judas to the club.

 

[Tennessee Blue Mike]

Great read. Although not as bad as I suspected I believe this still may scoot Moyes out the door by being not able to get more quality in the squad. Bargains are tough to find and then who do you let go. Hetinger comes to mind first but we will have a very interesting off season to see our near future unfold before our eyes.

 

[Dell Boy]

I thought everyone knew that when we sell a player it,s not because we need to pay back the loans but becuase we have lost a very dear part of our family unless of course they don,t play ball and they are in fact a judas to the club.

Is this the old Franny Jeffers line? We are a business fighting a tough commercial battle. If players need to be sold then so be it. In the example of Jeffers it was brilliant business. Once any player is gone they are gone.