Increase in money = less debt?

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CahillsCornerFlag

Player Valuation: £70m
Lately I've been hearing about the money (sky money?) next season being drastically increased, by as much as 50%? Moyes brushed over it recently too in one of his interviews.

I generally don't do finances, partially because I have little interest in anything monetary, my own finances aside.

Can someone give a succinct outline of how much we get now vs how much we're likely to get, and where this new money is coming from.

Most importantly, will it allow us to pay off our debts and how much do they stand at? How long will it take?

Cheers lids.

P.s, feel free to link useful articles/past threads if they explain what I'm after.
 
Sadly the only real effect this is going to probably have is more inflated wages for average players.
 
I believe the increase is around 15m a Season.

Every Agent in the Country is aware of this, so players wages will increase.
Every Club in the World is aware of this, so transfer fees will increase.

I doubt we will see any huge benefit.
 
I believe the increase is around 15m a Season.

Every Agent in the Country is aware of this, so players wages will increase.
Every Club in the World is aware of this, so transfer fees will increase.

I doubt we will see any huge benefit.

The vast majority of the previous TV revenue increases in football has gone the same way so I'd imagine this one will be the same
 
I believe the increase is around 15m a Season.

Every Agent in the Country is aware of this, so players wages will increase.
Every Club in the World is aware of this, so transfer fees will increase.

I doubt we will see any huge benefit.

Perhaps long term then we wont see much benefit, but for the very first payment before all the inflation becomes commonplace, surely we could just use that £15m straight on debt, boom. Its £15m we didn't have before, so we'd better put it to good use.
 

I'd hope that if they had 15 million lying around, it would go into the squad, not paying off debt.
 
I'd hope that if they had 15 million lying around, it would go into the squad, not paying off debt.

But if you pay off debt, the banks wont come calling again for a while, and we'll be under little pressure to sell a big name/do what we did last season. Then we could sell players only when it suited us, and reinvest wisely.
 
The TV rights to the EPL were won by Sky and BT Vision who agreed to pay £3bn over three years from next season onwards.

This article details it well http://www.guardian.co.uk/media/2012/jun/13/premier-league-tv-rights-3-billion-sky-bt?intcmp=239. Basically should be an additional £14/£15m per season per club.

This piece is pretty much spot on about how that money will be used, http://www.guardian.co.uk/football/blog/2012/jun/13/premier-league-tv-deal-bt-sky.

So in reality the clubs will see little to no benefit, though if those clubs looking to maintain or build a sustainable model continue down that route they may be able to clear a small portion of existing debts by ensuring they seek higher transfer fees for the players they sell. It's the players and the associated Mr 15% who will benefit from this.
 
Perhaps long term then we wont see much benefit, but for the very first payment before all the inflation becomes commonplace, surely we could just use that £15m straight on debt, boom. Its £15m we didn't have before, so we'd better put it to good use.

Im not even sure what our debt levels or cashflow looks like at the moment.

I guess December when the accounts come out we can make a better judgement.

Without going into too much detail and making some guess work, over the last Year we have sold more players than we have bought, plus the sale of Bellefield, all in all, give or take a few million, its around 25mish, plus some sort of wage bill reduction.

So I for 1 cant wait to see this Years accounts.

I just personally feel the way the Club is ran, I doubt that money will make any difference.

As I say, cant wait to see how many Lawnmowers we have bought this Year.
 

I'd hope that if they had 15 million lying around, it would go into the squad, not paying off debt.

It's the same as any other financial situation, the frugal or sensible would chose to use a windfall to pay off debt or lump against a mortgage payment. The frivolous would spend it on new cars or televisions.

I know which option I'd take at home, in relation to my business and what I'd do should I be in charge of the finances of Everton. There are many however on the other side of the fence who would like the club to spend every penny they have and then borrow more to buy more players running up further debts in the process.

Personally, I don't think this is a sustainable attitude to have, especially given that costs (wages primarily) are spiralling out of control and it will be football clubs, not footballers who fall by the wayside as a result. But then I'm staid and boring and apparently lack ambition.
 
Cheers Milks.

So Goat, we're definitely looking a debt decrease then come the next reports? All I hear is that the 'other' column seems to grow and the debt never changes.
 
Cheers Milks.

So Goat, we're definitely looking a debt decrease then come the next reports? All I hear is that the 'other' column seems to grow and the debt never changes.

I'd imagine we're swimming against the tide, just paying back the interest on the loans and mortgages. This might allow us to make more of a dent in the debt, but will continue to mean we have to sell to generate funds to buy players.

If there's £45m of debt presently, making a £15m lump payment might clear anything between £9-£12m off the actual debt due to interest rates.
 
Cheers Milks.

So Goat, we're definitely looking a debt decrease then come the next reports? All I hear is that the 'other' column seems to grow and the debt never changes.

It would be pure guess work mate, the amount of "trading" we have done this Year is HUGE and to be honest a lot of it wont even be felt this Year.

And to be honest mate, im a bit thick and utterly rubbish at Maths.

But when the accounts come out, better people than me will look at them, but if there isnt some sort of debt reduction, theres gotta be serious questions asked.
 
It's the same as any other financial situation, the frugal or sensible would chose to use a windfall to pay off debt or lump against a mortgage payment. The frivolous would spend it on new cars or televisions.

If new cars and televisions could generate cash flows like players can, then I'd be buying cars and televisions. Sadly, they do not. This isn't personal finance.

I know that debt is a nasty word around here, but based on the public info available, our debt is reasonable. It will be interesting to see what the newer numbers look like when released.
 

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