Everton's finances look to be in a mess

[davek]

Taken from Si's post on NSNO where he's posted this new account from Companies House. In taking out another loan - probably borrowed against next years tv revenue to keep the club's head above water - the paperwork also reveals that the club's credit rating has dropped alarmingly from 30/100 to 12/100 (high risk).

 

[Ezekiel]

this is appalling, it was clear that we were being led into trouble but this is very very bad if true.

 

[TheBlueGibbon]

How can our pre-tax profits have fallen by 999.9% (at the bottom of the page).

 

[danthetoffeeman]

It just gets more and more depressing!!!

 

[davek]

How can our pre-tax profits have fallen by 999.9% (at the bottom of the page).

I'm not sure mate. Reading around the other forums it appears that particular part is some sort of bureaucratic box ticking exercise of sticking any old thing in that section of the form.

The substantive point overall, though, is that our finances are such that cash only transactions are being advised and we'll get no credit from other clubs (it's at their discretion to trade with us as it states) in the transfer market. That's why we're only bringing in £250,000 rated youngsters....and that greek kid was probably paid for by taking on the lad from Portugal as a favour to a football player agency!!!

 

[Kay20]

Yikes. This is pretty darn bad if true. It's starting to look like new investors may be the only way out.

 

[Muggins]

High risk you say.

See, told you that journo who said how everyone should look at us and say "wow Everton are a model club..." was talking rubbish.

 

[Neiler]

How can our pre-tax profits have fallen by 999.9% (at the bottom of the page).

Our profit before tax and player tradeing was 6.3 mill, however audited with, admonastration saw us make a loss of 6.7 mill last year.

Depending on wheather the 999.9% is before or after player tradeing, tax and admonistration we've either broke even - which would be fantastic news as i would be amazed if we have, or are posting a loss of 12 odd million.

To be honest i make it we should be posting a loss of betweem of between 8 - 15 million this year, its hard to be more certain then that due to new deals -TV/Contracts/Commercial kicking in. But then im just working this out in my head - just my opinion.

But i make it that this is our worst year finacialy in a long time, id be pleasently surprised if it wasnt.

 

[kenada_blue]

Poor league positions and no European revenue plus sticking players on 60-75k a week contracts does have it's downfalls.


A certain poster is keeping quiet over this.....

 

[Neiler]

Poor league positions and no European revenue plus sticking players on 60-75k a week contracts does have it's downfalls.


A certain poster is keeping quiet over this.....

We should have a revenue from Europe last season mate - the prize money was more then in previous seasons, the concern though is the FA Cup run the year before was worth 10 mill to us - so thats ten million down before we start. There is a new foreign TV rights deal as well which should boost income, but wheather that and revenue from Europe is enough to balance out the loss of the 10 million from the cup or not i doubht. Other things should kick in and the kitbag deal will be intresting to see what its actually worth - i worry we are just on retainer and dont have a share in the mark up - which would mean its not a great deal. We were on Televison a lot less last year and our placement money was also significantly down - which all lessens our turnover.

The signs arent good in expenditure in the last two windows, so im expecting a substanial loss. Its not looking great next year either, we budget for 10th and it will be a real challenge getting there as of today and how the window has gone. Europe is also looking less likely so that a loss of a revenue stream next year. Like you say new contracts are an expenditure issue, but its unlikely we will see their full cost untill next years set accounts, due to them being signed during the year, so we havnt gone a full year paying them at the improved rate. All doesnt bode well for next year or upcoming windows if im honest.

Signs of robbing Peter to pay Paul are concerning, Yak, Vaughan, Yobo, Pienaar gone - certianly from what i can see arent good footballing decisons, but the most concerning thing is that fiscaly it seems we have to loose players, to bring in a loan fee and not pay their wages in order to meet the improved contracts, or make up the margin of losses becuase of the new contracts - it seems to be the case to be honest. Otherwise you have to assume Davey is compleatley off his rocker as our team has been weakened substaintaly since last May, with no sign of players being recycled or the fincancial prowess to be able to recycle for equal quality. Just to clarify i dont think Davey is of his rocker, so im really concerned about the upcoming accounts.

Those who know me, know i have supported the board, so im speaking objectively on this, as far as i can make out based on the above i would be amazed if we kept our losses below the 8 mill figure this year.

 

[ijjysmith]

Poor league positions and no European revenue plus sticking players on 60-75k a week contracts does have it's downfalls.


A certain poster is keeping quiet over this.....

This kinda makes sense to me. I beleive that, as we all did, the club reckoned we'd be right up there this year so offering huge contracts was not an issue. However, as we've been awful more often than not, it's messed us up.

 

[timmyboy]

the writing was on the wall when we started outsourcing activities, catering merchandise etc, and selling assets, finch farm, then leasing them back.
Under the current business model the owners have been trying to squeeze out as much cash as possible to the detriment of the future.
You get the impression the major shareholders are waiting for a wealthy benefactor to buy the club. You also tend to think we the lack of investment someone is asking too much for their shares.

 

[Bruce Wayne]

We should have a revenue from Europe last season mate - the prize money was more then in previous seasons, the concern though is the FA Cup run the year before was worth 10 mill to us - so thats ten million down before we start. There is a new foreign TV rights deal as well which should boost income, but wheather that and revenue from Europe is enough to balance out the loss of the 10 million from the cup or not i doubht. Other things should kick in and the kitbag deal will be intresting to see what its actually worth - i worry we are just on retainer and dont have a share in the mark up - which would mean its not a great deal. We were on Televison a lot less last year and our placement money was also significantly down - which all lessens our turnover.

The signs arent good in expenditure in the last two windows, so im expecting a substanial loss. Its not looking great next year either, we budget for 10th and it will be a real challenge getting there as of today and how the window has gone. Europe is also looking less likely so that a loss of a revenue stream next year. Like you say new contracts are an expenditure issue, but its unlikely we will see their full cost untill next years set accounts, due to them being signed during the year, so we havnt gone a full year paying them at the improved rate. All doesnt bode well for next year or upcoming windows if im honest.

Signs of robbing Peter to pay Paul are concerning, Yak, Vaughan, Yobo, Pienaar gone - certianly from what i can see arent good footballing decisons, but the most concerning thing is that fiscaly it seems we have to loose players, to bring in a loan fee and not pay their wages in order to meet the improved contracts, or make up the margin of losses becuase of the new contracts - it seems to be the case to be honest. Otherwise you have to assume Davey is compleatley off his rocker as our team has been weakened substaintaly since last May, with no sign of players being recycled or the fincancial prowess to be able to recycle for equal quality. Just to clarify i dont think Davey is of his rocker, so im really concerned about the upcoming accounts.

Those who know me, know i have supported the board, so im speaking objectively on this, as far as i can make out based on the above i would be amazed if we kept our losses below the 8 mill figure this year.

Excellent post as always.

 

[Robert Jarvis]

When one looks at the RS who we were all laughing at because the bank may have taken them over, look now 20 mill plus for Suarez.

No way can we comptete with the likes of this. Come summer big names will have to go to balance the books that seems to be the likely outcome.

Without any capital coming in lets be honest with ourselves we are in a terminal decline. All we have are players and a poor stadium. If as Dave says about our credit rating dropping to high risk and we are having to deal on cash only terms this is really significant. It is the way Pompey went.

We have too few points to be able to stay in the PL if adminstration beckoned.

 

[Muggins]

When one looks at the RS who we were all laughing at because the bank may have taken them over, look now 20 mill plus for Suarez.

No way can we comptete with the likes of this. Come summer big names will have to go to balance the books that seems to be the likely outcome.

Without any capital coming in lets be honest with ourselves we are in a terminal decline. All we have are players and a poor stadium. If as Dave says about our credit rating dropping to high risk and we are having to deal on cash only terms this is really significant. It is the way Pompey went.

We have too few points to be able to stay in the PL if adminstration beckoned.

You're right Rob, we were having a a good laugh at the RS when they were down and out, and we were beating them etc,

but they've still come out smelling of Roses....unbelievable really.