Increase in money = less debt?

[Animal Farm]

Just to clarify, the new deal represents a minimum of an extra 14million pound per season. The extra 14 million applies to the club that finishes 20th, those finishing higher will receive far more.

People are correct in saying previous increases have gone into players pockets, but look at the quality of player we have now!. Heitinga on 65k, Fellaini/Arteta on 75k, we would never have been able to commit to contracts like this before the increases in TV money. So it may well go into players pockets, but we will get a better standard of player as a result.

I think Everton will be sold in the next 24 months, if we aren't sold on the back of this massive increase of revenue then we will never be sold. As stated, the revenue could be used to pay off some debt (which is already low), meaning more profit for the major shareholders, and possibly a more attractive investment for the purchasers.

 

[Tennessee Blue Mike]

Just to clarify, the new deal represents a minimum of an extra 14million pound per season. The extra 14 million applies to the club that finishes 20th, those finishing higher will receive far more.

People are correct in saying previous increases have gone into players pockets, but look at the quality of player we have now!. Heitinga on 65k, Fellaini/Arteta on 75k, we would never have been able to commit to contracts like this before the increases in TV money. So it may well go into players pockets, but we will get a better standard of player as a result.

I think Everton will be sold in the next 24 months, if we aren't sold on the back of this massive increase of revenue then we will never be sold. As stated, the revenue could be used to pay off some debt (which is already low), meaning more profit for the major shareholders, and possibly a more attractive investment for the purchasers.

Yes or at least some prominent investment. My timeline was within five years but in two it could happen. Reduce that debenture and we are a safe bet. We need to streamline our costs and somehow market the team with a vengence.

 

[milks]

The cost of borrowing is soooooo low these days, anything other than clearing away old loans at higher interest rates and replacing them with new debt at very low interest rates would be utter madness. Assuming the club has the credit rating to borrow at those rates.

I think their credit worthiness is a problem given fixed incomes (matchday revenue) at the moment. Did the club not have to get a bridging loan from a Cayman Island based outfit (associated with Earl) last year to cover the gap until the TV money was paid?

Not sure a loan of this volume/nature would be at anything like the 5.9/6% apr that I could go and borrow £10k at.

I may be wrong though....I often am.

 

[milks]

Am sure we where reported as having £45mill worth of debts in 2009.

So if after all the money raised over the past few seasons that figure is still the same then this money will probibly just end up in the "other" column again.

If you owe £45m in 2009 and only pay off the interest for three years, you'll still owe £45m in 2012.

It is evident that currently the only way the club can both pay this debt back and invest in the squad is by raising funds by selling higher value players. We're treading water spending the day to day and matchday income to pay the bills and wages.

 

[milks]

Just to clarify, the new deal represents a minimum of an extra 14million pound per season. The extra 14 million applies to the club that finishes 20th, those finishing higher will receive far more.

People are correct in saying previous increases have gone into players pockets, but look at the quality of player we have now!. Heitinga on 65k, Fellaini/Arteta on 75k, we would never have been able to commit to contracts like this before the increases in TV money. So it may well go into players pockets, but we will get a better standard of player as a result.

I think Everton will be sold in the next 24 months, if we aren't sold on the back of this massive increase of revenue then we will never be sold. As stated, the revenue could be used to pay off some debt (which is already low), meaning more profit for the major shareholders, and possibly a more attractive investment for the purchasers.

I was under the impression from my reading that it averaged out at £15m per club per year irrespective of position. Your comment stacks up better for us however.

The one hurdle to investment is evidently the asking price set by Bill and the board. If it's £150m as has been mentioned in the media this means the actual cost to a buyer would be double that after the debt is added and assuming they wish to redevelop Goodison or build a new stadium, as they'd need to to increase revenues and see any return on investment. This makes the whole situation improbable in my eyes.

I love these financial debates, I'm such a dullard.

 

[Bluesnapper]

Apparently the Kopite in charge of our PR, Tyrell, said recently on Twitter that the debt has not reduced since the last accounts and that the 85p in the £ that goes 'to Finch Farm' is now 87p.

 

[bourneblue]

BourneBlue was saying yesterday that the debts were cleared. I questioned him on this but there was no reply.

Sorry for the late reply,but here you are,an article from CEF.

Colin Fitzpatrickâ€￾@fitzcolin

Everton mortgages 43, 44, 47 & 48 satisfied http://www.scribd.co...ortgage-Charges
Ps bluesnapper posted this on cef.The poster above quoting finch farm.

 

[Chang Elephant]

Sorry for the late reply,but here you are,an article from CEF.

Colin Fitzpatrickâ€￾@fitzcolin

Everton mortgages 43, 44, 47 & 48 satisfied http://www.scribd.co...ortgage-Charges
Ps bluesnapper posted this on cef.The poster above quoting finch farm.

Excellent news, no more debts....Free at Last.

 

[nsno-chris]

The money in football is getting dangerous now; at the end of the day it is us who are paying for this, either at the match or through Sky etc; once this goes bang (and it will eventually) every club as **** it and the entire thing will collapse like a house of cards.

FIFA/UEFA/FA need to get a grip of money and ensure it is filtered through and proplerly managed, this Financial Fair Play will slightly help towards this but the players and agents need to be pulled in line throughout the world