Guardian finances article

[jsweeney17]

Interesting article in the Guardian online today about club finances from last year (2010/11) with a handy dandy sortable table at the bottom. If everything were as based on money aspeople say then we should be 9th overall in the prem.
http://www.guardian.co.uk/football/2012/may/23/premier-league-accounts-profit-debt

 

[windymiller]

Interesting article in the Guardian online today about club finances from last year (2010/11) with a handy dandy sortable table at the bottom. If everything were as based on money aspeople say then we should be 9th overall in the prem.
http://www.guardian.co.uk/football/2012/may/23/premier-league-accounts-profit-debt

What's very interesting is the overall net debt (£45M which is the ninth lowest overall debt in the league) versus our repayment liabilities (£4M which is the 7th highest in the league), which illustrates the poor financing deals that have been struck relative to other clubs with a similar turnover (Sunderland for example). This almost certainly reflects the fact that we are not getting any low cost loans from our own shareholders unlike Ellis Short at Sunderland and Mike Ashley at Newcastle.

 

[JohnHogg]

Read somewhere that Sunderland are bankrolled by interest free loans by the owner. That would help somewhat if I read correctly...

 

[jsweeney17]

they also had a bit about the top 50 transfers to watch for the summer. our only mentions were Baines to Manure and Moses to goodison. :-(,

 

[davek]

What's very interesting is the overall net debt (£45M which is the ninth lowest overall debt in the league) versus our repayment liabilities (£4M which is the 7th highest in the league), which illustrates the poor financing deals that have been struck relative to other clubs with a similar turnover (Sunderland for example). This almost certainly reflects the fact that we are not getting any low cost loans from our own shareholders unlike Ellis Short at Sunderland and Mike Ashley at Newcastle.

I wouldn't like to hazard a guess at what Everton owe off the books to people connected to Kenwright. The suspicion is that the huge increase in 'operating costs' is connected in some way to certain parties calling in their interest payments, and then we have no real idea as to who stands behind the bridging loans that are done between tv payments paid in advance.

It's fair to say that not all meets the eye.

 

[Brennan]

The fact that our turnover is only £5m higher than Fulham is embarrassing.

 

[pfim]

I wouldn't like to hazard a guess at what Everton owe off the books to people connected to Kenwright. The suspicion is that the huge increase in 'operating costs' is connected in some way to certain parties calling in their interest payments, and then we have no real idea as to who stands behind the bridging loans that are done between tv payments paid in advance.

It's fair to say that not all meets the eye.

There aren't accounting rules and laws in the UK?

 

[pfim]

The fact that our turnover is only £5m higher than Fulham is embarrassing.

Bingo.

 

[davek]

There aren't accounting rules and laws in the UK?

Off the books in the sense that it's there but so vague it may as well not be there as an explanation. A catch all category. Even the CEO of the club hasn't got the foggiest of what fully constitutes 'other operating costs' and no one but no one from that club has ever explained satisfactorily why the money sucked out of the club due to it has multiplied in recent years.

 

[dholliday]

Interesting article in the Guardian online today...

is The Guardian the most quoted newspaper on this forum? Seems like it.

 

[Neiler]

Off the books in the sense that it's there but so vague it may as well not be there as an explanation. A catch all category. Even the CEO of the club hasn't got the foggiest of what fully constitutes 'other operating costs' and no one but no one from that club has ever explained satisfactorily why the money sucked out of the club due to it has multiplied in recent years.

Its not of the books mate its under total liabilities. As for Robert Earl being behind the bridging loans well...............

 

[steele]

Everton (17) Just behind Spurs (20) and Manch C (20) in match day income. How can Liverpool (41) generate 150% more match day income ?

 

[davek]

Its not of the books mate its under total liabilities. As for Robert Earl being behind the bridging loans well...............

As I said, in the sense that it's a catch all category it may as well be left off the accounts, it tells us nothing in detail.

Anytime you or anyone else get a full breakdown of what goes into other operating costs and how much each account for (and why the category leapt from almost nothing to a massive chunk of revenue), I'll be grateful to read your findings.

 

[Neiler]

As I said, in the sense that it's a catch all category it may as well be left off the accounts, it tells us nothing in detail.

Anytime you or anyone else get a full breakdown of what goes into other operating costs and how much each account for (and why the category leapt from almost nothing to a massive chunk of revenue), I'll be grateful to read your findings.

Bob gave an explanation a month ago mate, i take it you don't believe him?

That figure is made up of around twenty-five cost centres which like all areas of the Club are monitored constantly. It includes every item of expenditure that we incur besides wages. It is considerably less than many other clubs of similar size and there is absolutely no frivolous, extravagant or unrequired expenditure in there. To add to this, we've just hired procurement specialists to drive this number even lower.365 days a year we maintain Goodison and Finch Farm

We pay rent, rates and a substantial utility bill. We maintain some of the best pitches in the League. We support a modern, secure IT and communications infrastructure. This season already we've hosted 24 games and paid the police and stewards, provided food in the lounges and supported an expensive matchday operation. Less often this season, we have travelled to away games and funded a large travelling party in a way that ensures we have the best possible chance to win the game. We sometimes fund a large travelling party of fans! Like all businesses we pay lawyers and accountants and advisers and auditors too much, but football is a business that attracts attention and we need help from our professional partners. It is a large and complex business. It's a Club where costs are managed and minimised.

 

[davek]

Bob gave an explanation a month ago mate, i take it you don't believe him?

Exactly, that was the article I was referring to from Elstone: he says there's 'around 25' costs incurred bundled up into other operating costs...and then proceeds to give only 11/12 of them and he doesn't cost them! And he'd never ever address why the cost of all those everyday costs he did mention have rocketted in recent years to around £20M from almost nothing.

As I say, anytime there's a reasonable explanation found on the other operating costs please let me know, I'd be interested to read it.