Kitbag.

[bizzaro]

That's my point mate, you're making assumptions - back your assertions with hard facts and then they're credible.

But I've quoted the 2013 and 2014 figures mate and the profits.

Commercial revenue and profit are very very similar at Newcastle.

That tells me something.


It tells me Everton are NOT performing.

 

[roydo]

One thing I wouuld say is that Newcastle who control their own distribution are in a much stronger position to negotiate commercial terms and with sponsors.

However they have the skill set within their club to do so - it is after all Mike Ashley's business. But I think if you looked more closely at his business practices you might want to question whether you'd want this type of business man running your club. Not many Newcastle fans do.

Yep.

 

[graham74]

Going along with a previous posters comment re.Newcastle. Its one of the away games I get to every year and so many of there fans are decked head to toe in newcastle clobber, 50\60 year old fellas and that. Maybe its a merseyside thing but we just dont do it, my red mates who go the game dont wear colours either. Its something I dont think needs addressing, or even could be, but certaintly it would appear revenues need increasing from this department. States/asia maybe?

 

[davek]

Some points I would make:

The key component of sponsorship revenues is regular participation in the Champions League, not success in the Premiership. Given we have never been in the Champions League beyond one brief appearance in the qualifying round it's not surprising then that our sponsorship deals reflect this.

Secondly most teams report commercial revenues in their entirety (as it helps reduce the wage to turnover ration). They account for commercial costs usually hidden in other operating costs. Everton are correct in saying it is difficult to make direct comparisons as the revenues Everton report go straight to the bottom line as costs are accounted for by their commercial partners, Kitbag. At the end of the day revenues are vanity, profits are sanity (as the saying goes)

Thirdly, the growth in revenues arising from a new stadium is in my opinion greatly over-estimated in terms of its importance, especially when considered against the cost of capital required to produce the stadium. A 50,000 seater stadium with say 90% occupancy would generate £7.5 m in extra revenues. Assuming the stadium is paid for at least partially by debt then quite quickly the net revenues arising from the stadium apear even less significant.

There's little doubt that Kitbag's policy of only distributing through 2 stores and our online presence is limiting. There's little doubt that more pressure should be applied to Kitbag to improve distribution channels for Everton merchandise, but there's no evidence (in fact contrary evidence) that the club would be any better off by bringing the operations in house. If we were to do so it would require a proper commercial director, not a PR man with potential conflicts of interest doing a part time job.

The really galling thing about the statement tonight is the attempt to present a giveaway (and it is as - no matter our short term success if we'd have achieved a cup win or CL stage place, say - we'd have been in a fixed contract for years) as evidence of a robust commercial approach. Commercially though Everton are - in the economic sense of the word - retarded and have been ever since Johnson left. The club has barely added £10M pa to the commercial revenue in the time this shower have been in charge.

Put simply, they deserve none of the relativism they appeal to.

 

[bizzaro]

Going along with a previous posters comment re.Newcastle. Its one of the away games I get to every year and so many of there fans are decked head to toe in newcastle clobber, 50\60 year old fellas and that. Maybe its a merseyside thing but we just dont do it, my red mates who go the game dont wear colours either. Its something I dont think needs addressing, or even could be, but certaintly it would appear revenues need increasing from this department. States/asia maybe?

The club don't just sell shirts.

 

[The Esk]

But I've quoted the 2013 and 2014 figures mate and the profits.

Commercial revenue and profit are very very similar at Newcastle.

That tells me something.


It tells me Everton are NOT performing.

There are too many variables that you've not considered to reach that conclusion, for example transfer activities, profits on player sales, amortisation of player contracts, depreciation, exceptional items in the accounts.

It looks like the way you describe it but until you strip everything out you cannot be sure. I haven't the time to do it, but it would be a good exercise.

 

[bizzaro]

The really galling thing about the statement tonight is the attempt to present a giveaway (and it is as: no matter our short term success if we'd have achieved a cup win or CL stage place, say, we'd have been in a fixed contract for years) as evidence of a robust commercial appraoch. Commercially though Everton are - in the economic sense of the word - retarded and have been ever since Johnson left. The club has barely added £10M pa to the commercial revenue in the time this shower have been in charge.

Put simply, they deserve none of the relativism they appeal to.

The numbers speak for themselves.


If someone like me - not exactly a renowned critic of the board - is having a go over this.

(but someone who knows FFP/Premier league financial rules and is furious over the stadium backtracking) you know that people need to take notice.


Remember: Aston Villa.

 

[bizzaro]

There are too many variables that you've not considered to reach that conclusion, for example transfer activities, profits on player sales, amortisation of player contracts, depreciation, exceptional items in the accounts.

It looks like the way you describe it but until you strip everything out you cannot be sure. I haven't the time to do it, but it would be a good exercise.

I know you're into the hard detail of accounting. The fact remains.

Would you consider Everton are really doing well commercially???

Really? In an honest world.

 

[AaronTheBlue]

He is all over the place there

 

[graham74]

The club don't just sell shirts.

Dont think I mentioned shirts

 

[The Esk]

The really galling thing about the statement tonight is the attempt to present a giveaway (and it is as - no matter our short term success if we'd have achieved a cup win or CL stage place, say - we'd have been in a fixed contract for years) as evidence of a robust commercial approach. Commercially though Everton are - in the economic sense of the word - retarded and have been ever since Johnson left. The club has barely added £10M pa to the commercial revenue in the time this shower have been in charge.

Put simply, they deserve none of the relativism they appeal to.

Dave, I agree totally with your post. Here we have with this statement another example of the way Everton is run. The head of communications also happens to be head of commercial activities. The statements have no validity or weight attached to them, no credibility, how can they when the spin doctor also happens to be the man responsible for commercial activities?

Far better to have said something along the lines of:

"The Club continues to work alongside its commercial partners. Whilst acknowledging the current value of our relationship, the Board recognises many areas for improvement, in terms of our retail presence, range of merchandise and ultimately profitability.

We will continue to press our partners to provide the best possible experience for our supporters and the best commercial terms for the club. We will examine all strategic options in the year ahead."

That would keep everyone on their toes and perhaps bring a change to our partners performance.

 

[bizzaro]

Dave, I agree totally with your post. Here we have with this statement another example of the way Everton is run. The head of communications also happens to be head of commercial activities. The statements have no validity or weight attached to them, no credibility, how can they when the spin doctor also happens to be the man responsible for commercial activities?

Far better to have said something along the lines of:

"The Club continues to work alongside its commercial partners. Whilst acknowledging the current value of our relationship, the Board recognises many areas for improvement, in terms of our retail presence, range of merchandise and ultimately profitability.

We will continue to press our partners to provide the best possible experience for our supporters and the best commercial terms for the club. We will examine all strategic options in the year ahead."

That would keep everyone on their toes and perhaps bring a change to our partners performance.

Totally agree.

That Kitbag statement tonight is totally bereft of realism. Entirely. Lock stock and two smoking barrels.

@davek

 

[Titus Bramble]

Need to get used to having posters on ignore, I thought esk was having a chat with himself for a while...

I've absolutely no clue on business or anything, but to me it kind of makes sense to outsource our merchandise selling as we have no specialist in the club, like Newcastle who have been mentioned. Although I am sure the deal could be better as well.

 

[The Esk]

I thought esk was having a chat with himself for a while...

lol

 

[The Esk]

I've absolutely no clue on business or anything, but to me it kind of makes sense to outsource our merchandise selling as we have no specialist in the club, like Newcastle who have been mentioned. Although I am sure the deal could be better as well.

You've summed it up very well mate.