Financial Fair Play investigation

[Tony’s Carp]

View attachment 207706
What does this mean?

The majority shareholder who is reliant on support from their majority shareholder?

Moshiri is reliant on Usmanov who is currently unable to use his money?

So essentially, if we go down, we are unbelievably screwed?

I was just looking at that and think that's just a technical point - the majority shareholder of Everton is Blue Heaven Holdings Limited, of which Moshiri is the majority shareholder. So the majority shareholder of the majority shareholder just refers to Moshiri I think.

 

[Villa_Fan]

Yes as I indicated about 25m over their arbitrary, none inflation adjusted figure.

It is over 132m above the 105m threshold, not 25m

 

[efcfanwirral]

I was just looking at that and think that's just a technical point - the majority shareholder of Everton is Blue Heaven Holdings Limited, of which Moshiri is the majority shareholder. So the majority shareholder of the majority shareholder just refers to Moshiri I think.

yeah that's my thoughts too - if Usmanov was involved in such a way he was mentioned in the accounts, we'd have been sanctioned and relegated last season

 

[James]

View attachment 207706
What does this mean?

The majority shareholder who is reliant on support from their majority shareholder?

Moshiri is reliant on Usmanov who is currently unable to use his money?

So essentially, if we go down, we are unbelievably screwed?

It’s so so with Blue Heaven Holdings. It is the majority shareholder in the club. Its majority shareholder is Moshiri. In effect we are reliant on Moshiri if we get relegated.

 

[davek]

View attachment 207706
What does this mean?

The majority shareholder who is reliant on support from their majority shareholder?

Moshiri is reliant on Usmanov who is currently unable to use his money?

So essentially, if we go down, we are unbelievably screwed?

Well, if you were a commission reading it what you shouldn't think is: "Hmm. Let me see, what can we do here to make things more unstable? I know, we'll hand them a massive points deduction and sink them".

I suspect that's what the motive was in the auditors inserting that comment.

 

[Villa_Fan]

what losses could possibly be claimed in 21/22?

no wonder we're getting dragged in front of a commission for this.

I was thinking that myself when I went thru the accounts, I assume it is attributed to a ramp-up period following Covid to get back to normal business. Maybe the paid a few lads 8m to take down the signs about wearing masks and keeping 2m apart

 

[Efcjake]

Can someone who doesn’t run their own website with their own fake name please explain it all in layman’s

Some things I've taken away

• Wages to turnover dropped from 95 to 90%
• We paid Benitez and staff 10.5 million
• We pulled in 15.4 million in gate receipts but apparently 10.8 million of the famous "Other Operating Costs" are due to the stadium being open to fans?
• We've cut the amount we're losing on writing off player contracts from 81 million to 68 million.
• Despite losing the USM and Megafon deals the commercial and sponsorship revenue stayed about the same.
• Broadcasting dropped a bit because the last year was inflated due to the extra games in the financial period from the covid postponements.
• "Other Commercial Activities" increased by about 4 million, I'm assuming Florida Cup?
• Wages/staff costs dropped by 20 million (This would include the pay cut from Ancelotti to Benitez and losing James)
• Looks like they made sure to point out that Brands was the highest paid director with 2 million last year and the next highest now is getting just under 900k, overall director pay dropped from 4.2 to 3 million
• 168 million spent on the stadium by July 2022

Also just want to point out to @4737carlin Bill Kenwright signs off on these accounts.

 

[efcfanwirral]

Well, if you were a commission reading it what you shouldn't think is: "Hmm. Let me see, what can we do more here to make things more unstable? I know, we'll hand them a massive points deduction and sink them".

I suspect that's what the motive was in the auditors inserting that comment.

or the commission sees where we are in mid May, if we've gathered enough points to be considered nearly safe then its a 3 point deduction + fine, and we stay up anyway

 

[Villa_Fan]

Well, if you were a commission reading it what you shouldn't think is: "Hmm. Let me see, what can we do more here to make things more unstable? I know, we'll hand them a massive points deduction and sink them".

I suspect that's what the motive was in the auditors insering that comment.

Auditors must add any risks to the report so you are right it is fairly normal. The underlying message in the statement, imo, is that it is saying EFC does not have funding agred to continue stadium development if they are relegated.

 

[davek]

As I said, the accounts are out and they dont make things any clearer.

...but they do, dont they?

 

[catcherintherye]

According to press reports the COVID losses may not have been accepted on the accounts. Allegedly the COVID losses were accepted before the 20/21 accounts were fully audited.

I see.

I mean its pretty farcical if they were accepted one minute and rejected the next. I'm not sure how anyone could have any faith in such a regulator really.

Schrodingers wrote downs, both accepted and rejected.

Unfortunately most football fans, and journalists are too thick to see the inherent contradiction.

 

[Bez2k2k]

Hmmmmm so even with all the players sales and players leaving such as Delph and Tosun, we still can’t break even and or make a profit. Something isn’t right.

 

[kenada_blue]

View attachment 207699

If true...it'll be down to the fact they agree with how the league is dealing with us. Open and shut case. Move on.

 

[catcherintherye]

I did deduct them, they are not included in those numbers, the covid losses are

Covid losses
21/22 (8.3m) attributed to Covid
20/21 (14.8m) attributed to Covid
19/20 (67.3m) attributed to Covid
18/19 no losses attributed to Covid

My point is you personally didnt deduct them. They were deducted by accounting professionals.

 

[davek]

or the commission sees where we are in mid May, if we've gathered enough points to be considered nearly safe then its a 3 point deduction + fine, and we stay up anyway

I like that reasoning.

I suspect in the long run when they conclude it'll be a massive fine + suspended points deduction based on what happens 'going forward'.