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[Deleted member 24970]

We have one of the poorest support, financially speaking, in the league. We just don't buy lots as a fanbase. We aren't a sexy club, we don't buy big (until recently) and our ground is old and creaky. Our history though illustrious, is a distant memorey to modern fans.
It's a difficult sell commercially. I'm not saying the board couldn't do better because they blatantly could, but there are or have been obstacles in trying to sell the club to companies. Shirt sales is where we really let ourselves down.

Im sure we have a exclusive contract to kitbag dont we ? Im not 100% clued up on the deals but i think it restricts shops like sports direct selling the kits doesnt it ? Also when clubs stop charging around £50-£100 for a shirt/kit then more people will buy the items. Id rather spend £50 on a retro Milan, france, italy, brazil shirt than buy the Everton shirt. Although i should take advantage of the modern legend sammy eto'o being in a everton strip. Your also right we arent the best club in terms of marketing etc....

 

[Deleted member 24970]

We have also floated round in the most expensive position in the league. It costs bloody loads in fees and wages to maintain a European challenge whilst not getting into Europe regularly.

110% True. We cant buy potential because we need the here and now for a European push, at the same time we cant gamble on spending £40m on a player because if we dont get the top four then were in a bad position, Leeds took a gamble and it done them no good, Liverpool spent £100m+ and they are struggling too. Its a mad world this football lark.

 

[SerenityNigh]

Prob is, the figures addvup in terms of profit, personally I would still like the club to bank the capital to meet our debt, they prob won't as it still has a life cycle of of another 12 years.

An important point that maybe is due consideration, does the net debt include the cost financing/ that debt as Dave pointed out earlier - our prudential deal came at a cost of 70 + million on borrowing of 30 million in interest.

The devil is always in the detail, expect to see an article on KEIOC on the very subject, now that i brought it up for them.

The financial statement is always a snapshot of accounts--so it should show the assets and liabilities of a certain date. I've never seen future interest payments included in such a report, and I wouldn't assume it's included in this either.

 

[caught]

Someone needs to make up an insulting rhyme for Kitbag. Nitbag, maybe, or Spitbag. Can't think of any others.

 

[MickA]

Im sure we have a exclusive contract to kitbag dont we ? Im not 100% clued up on the deals but i think it restricts shops like sports direct selling the kits doesnt it ? Also when clubs stop charging around £50-£100 for a shirt/kit then more people will buy the items. Id rather spend £50 on a retro Milan, france, italy, brazil shirt than buy the Everton shirt. Although i should take advantage of the modern legend sammy eto'o being in a everton strip. Your also right we arent the best club in terms of marketing etc....

If the will was there to do so (and the figures stack up) we could buy our way out of that contract (presuming Elstone hasn't negotiated the weirdest one ever). It will take much more that sorting the kit supply out though to start improving the commercial figures.

 

[Foot Long Hot Dog]

Anyone who thinks that binning off Kitbag and taking control back of our own shirt distribution is going to lead to a massive hike in the net profit received is heading for a disappointment. Same goes for Sodexo

The lack of revenue increases from sponsorships are valid though, as we're batting below our average in that regard and need to improve. Maybe outsourcing the entire process to a 3rd party might be a good starting point.

 

[zirc]

Someone needs to make up an insulting rhyme for Kitbag. Nitbag, maybe, or Spitbag. Can't think of any others.

I can think of a few but I'd probably get banned for saying them.

 

[Steve Wigan]

Anyone who thinks that binning off Kitbag and taking control back of our own shirt distribution is going to lead to a massive hike in the net profit received is heading for a disappointment. Same goes for Sodexo

The lack of revenue increases from sponsorships are valid though, as we're batting below our average in that regard and need to improve. Maybe outsourcing the entire process to a 3rd party might be a good starting point.

True. There is a reason, and a very good reason, that catering and merchandising have been outsourced(at many clubs as well as Everton). In the case of merchandising,people forget that we were losing money on merchandising in real terms before it was outsourced. I think catering was in a similar position. At least now there is profit to be seen..it could be better, but it is not directly costing us money as a loss.

 

[MickA]

True. There is a reason, and a very good reason, that catering and merchandising have been outsourced(at many clubs as well as Everton). In the case of merchandising,people forget that we were losing money on merchandising in real terms before it was outsourced. I think catering was in a similar position. At least now there is profit to be seen..it could be better, but it is not directly costing us money as a loss.

Agree with the outsourcing to a point but as always with such deals the devil is in the detail. Whether we got a decent deal or not we don't know so can only go on past experience. What is very concerning is agreeing deals that are 10 years long or so. Very poor.

 

[Chang Elephant]

At least now there is profit to be seen..it could be better, but it is not directly costing us money as a loss.

Poor that Steve, who gives a flying one that it's not costing us money, when it should be making us much more money.

 

[AndyC]

Anyone who thinks that binning off Kitbag and taking control back of our own shirt distribution is going to lead to a massive hike in the net profit received is heading for a disappointment. Same goes for Sodexo

The lack of revenue increases from sponsorships are valid though, as we're batting below our average in that regard and need to improve. Maybe outsourcing the entire process to a 3rd party might be a good starting point.

Agree wholeheartedly with your summation over Kitbag, however would urge caution on suggesting all sponsorship dealings are outsourced as that area of business is loaded with sharks. Stadium naming rights for one is a minefield that we need to keep the likes of Elstone away from as he's dafter than a box of frogs and would be odd-on to get suckered into a deal that would be poor at best and totally disastrous at worst.

 

[Foot Long Hot Dog]

Agree wholeheartedly with your summation over Kitbag, however would urge caution on suggesting all sponsorship dealings are outsourced as that area of business is loaded with sharks. Stadium naming rights for one is a minefield that we need to keep the likes of Elstone away from as he's dafter than a box of frogs and would be odd-on to get suckered into a deal that would be poor at best and totally disastrous at worst.

Isn't that even more reason to consider bringing in a reputable agency to promote our brand to commercial sponsors and leverage the best deals available in the market?

 

[AndyC]

Isn't that even more reason to consider bringing in a reputable agency to promote our brand to commercial sponsors and leverage the best deals available in the market?

Under normal circumstances I'd be tempted to agree with you but over the past couple of years I've heard a number of tales of RE and his 'agencies' and the stories would make your hair curl !!!
We had a perfectly good Marketing Director who had increased ALL our income revenue streams over the past three or four years culminating in our best ever season last season... and RE didn't do diddly-squat to try and keep him when the guy decided he'd had enough of being micro-managed and having his staff undermined.

 

[nil satis]

Prob is, the figures addvup in terms of profit, personally I would still like the club to bank the capital to meet our debt, they prob won't as it still has a life cycle of of another 12 years.

An important point that maybe is due consideration, does the net debt include the cost financing/ that debt as Dave pointed out earlier - our prudential deal came at a cost of 70 + million on borrowing of 30 million in interest.

The devil is always in the detail, expect to see an article on KEIOC on the very subject, now that i brought it up for them.

Are KEIOC still going? What is their purpose, isn't the new ground going to be in an acceptable post code?

 

[SerenityNigh]

Agree wholeheartedly with your summation over Kitbag, however would urge caution on suggesting all sponsorship dealings are outsourced as that area of business is loaded with sharks. Stadium naming rights for one is a minefield that we need to keep the likes of Elstone away from as he's dafter than a box of frogs and would be odd-on to get suckered into a deal that would be poor at best and totally disastrous at worst.

Is that your first offer?!? Wow! I thought I'd have to wait minutes before you offered something as great as this! Where do I sign?