Overlooked but big news

[evertony]

You know the TV money will be there in abundance every year from now until we're all worm food? I'm not so sure.
Besides, wouldn't be great if we didn't have to take such loans out every year? If our owners actually put their hands in their own pockets for a change?

When the TV money dries up, all the associated escalated costs will drop like a stone anyway.....wages and bonuses will be slashed when income stops. Agents will be a nasty memory from the past and kits will be a tenner again....supply and demand. The day of no TV interest in football means the public aren't interested so who needs to worry about when we're worm food?

 

[Neiler]

Tbh it doesnt make sense to pay down these mortgages and replace the with other debt - interest rates have changed hugely globally since the mortgages were taken out.

 

[Goat]

Be interesting if any of these mortgages relate to the building of the annexe.

Somebody had to mention the Annexe didnt they.

FFS

 

[Dylan]

Come on guys. You jump all over the 'pyar' sauced lids for this crap.

Now someone logs on with a screencap of a bit of accountancy software and he is legit?

Bloody hell, you lot are gullible when you want to be. I could have made that screen capture. Sorry, I want a little more concrete evidence than a low res screen cap.

 

[MapleLeafEvertonian]

Be interesting if any of these mortgages relate to the building of the annexe.

 

[Moomin]

Come on guys. You jump all over the 'pyar' sauced lids for this crap.

Now someone logs on with a screencap of a bit of accountancy software and he is legit?

Bloody hell, you lot are gullible when you want to be. I could have made that screen capture. Sorry, I want a little more concrete evidence than a low res screen cap.

I heard it on Twitter, must be true

 

[Dylan]

Yes, and qualifying for Europe would wreck that very same strategy to bits.

You have to think that if the new strategy (in the absence - as pfim mentions - of an adequate commercial performance of EFC) is to attack the biggest 'culprit' eating into revenue, which are wages. The iseal scenario for the club owners will be to finish just off the pace of Europe again this season.

We effectively have a club that cant afford to be moderately successful in PL finishing terms. Even a domestic cup win wouldn't have the financial benefits to offset building up a squad that could handle the extra workload of European competition.

Bottom line is: we are run by an absolute shower of [Poor language removed] who will do ANYTHING to cling on at zero expense until they get their big pay off for their shares. An unforgiveable shower of chancers who should be swept into the Mersey.

Ooo, I was agreeing with you then until that last part. I know it has been said many times before, but as fans it doesn't matter. Everton is a business. People invested (lol) in the hope of getting a good return on their money. I can't fault them for that. I think I would be the same in their situation (actually, I would never get into the risky business of owning a footy club)

 

[billycopper]

Why would we need to sell a player next year, and why would not doing so result in a loss? Our revenue will exceed our income, there won't be a need to sell anyone.

Our debts are already small by premier league standards, and we have paid god knows how much to our creditors over the past 24 months. The issue has always been covering losses, losses that may have mounted itself up in the form of an ever increasing overdraft.

The good news is that we wont be making a loss once the new TV money comes into play, and it will stay that way until we spend our new found revenue and that expenditure exceeds our income.

As a rule we lose £5m per year. This year will be unusual in that, mostly down to player sales, we will show a profit. The new tv deal starts in 2013-14 and will mean an extra £14m annually for each club. Will this mean that we'll show a £9m profit each year? I somehow doubt it. According to transfermarkt we're £37.3m up on player trading over the last 4 years and that doesn't seem to have made a dent in our debts.

 

[Animal Farm]

As a rule we lose £5m per year. This year will be unusual in that, mostly down to player sales, we will show a profit. The new tv deal starts in 2013-14 and will mean an extra £14m annually for each club. Will this mean that we'll show a £9m profit each year? I somehow doubt it. According to transfermarkt we're £37.3m up on player trading over the last 4 years and that doesn't seem to have made a dent in our debts.

That's at least an extra 14 million for each club. So 20th place will receive an extra 14 million, clubs finishing in top half of the table are going to be receiving far, far more than that.

The new TV money comes in from the season after the one coming up (2013/14), although I concede that the money will probably not arrive until the end of that season, as the prize money is based on league position.

This would also explain why nobody is spending like crazy through borrowing against next seasons income, next summer will be when that takes place, I can't wait!!!

 

[billycopper]

That's at least an extra 14 million for each club. So 20th place will receive an extra 14 million, clubs finishing in top half of the table are going to be receiving far, far more than that.

The new TV money comes in from the season after the one coming up (2013/14), although I concede that the money will probably not arrive until the end of that season, as the prize money is based on league position.

The thing is how long have we had a debt of £35m for? It just doesn't go away. Elstone will write a blog about increased salaries etc but I just can't see much changing.

 

[Deco]

Would really just love for a real explanation from someone in the club, with the amount of money we've gained in sale of assets and players in the past 2/3 years, as well as the decrease in the wage bill, we should really have put ourselves in a much better position than before.

 

[Animal Farm]

The thing is how long have we had a debt of £35m for? It just doesn't go away. Elstone will write a blog about increased salaries etc but I just can't see much changing.

I totally agree with you mate.

Thing is, 35million pound debt is [Poor language removed] all for a premier league club, and we have never been in danger of defaulting on a payment relating to the long term debt as far as I am aware?

The problem stems from spending more money than you receive.

But how can you possibly spend more money than you receive without investment? It wrecked my head for a long while this, but the only possible way (IMO) must have been for the extra 5million in expenditure to have been sourced from an overdraft facility. But eventually you have to pay that money back, and it is repayable on demand, which is what has caused us to sell so many assets over the last 24 months

It's further off than I thought, but the new TV money will rectify this, as our income will exceed our expenditure.

I wouldn't be surprised if we were sold just before the new TV money comes in.

 

[Zaschrona]

So our club has now only a one big loan through 2027 on a small installments? Or are there any other big loans we have now?

This could be huge news for us.. If we must to pay only something like 250k per month and not something like 1 mil per month, then that's amazing..

Anyway, outside of that, correct me if I am wrong, but I think we have to still pay big installments for Fellaini through next summer (300k per month, anyone?)

Together with that amazing new TV deal, this should be really great news.. Or am I completely wrong?

 

[TX Bill]

Just clears the way for more such mortgages in the future. And 'round and 'round we go. Where we'll stop, nobody knows, but likely the Championship.

We're headed for the Championship?

Well crap !!!

I'm just gonna go support Chelsea or ManU then.

 

[nsno-chris]

I totally agree with you mate.

Thing is, 35million pound debt is [Poor language removed] all for a premier league club

Its not massive for a PL club; however, it can be massive depending on how the debt has been negotiated in terms of repayment terms, interest, time, penalties etc etc

The problem stems from spending more money than you receive. But how can you possibly spend more money than you receive without investment?

Pretty easy really, many, many, many companies run a loss each year; rising costs, costs of living (i.e. utilities etc) all contribute to loss making; its not just a case of 'oh stop spending, we haven't had any extra money'. Everton is a business and it requires money to function

It's further off than I thought, but the new TV money will rectify this, as our income will exceed our expenditure

In theory and on an excel spreadhseet, then yes, basic math state that our income will exceed expenditure; in real life it won't. Players wages will rise, agent costs, insurance payments all rise on a regular basis, the most mundane thing which doesn't even cross your mind when you think about a football club will have a cost associated to it, and in time this will rise.

I wouldn't be surprised if we were sold just before the new TV money comes in.

The new TV money still doesn't make us a viable business, so we won't be taken over. There is no infrastructure to the business (i.e the stadium and commercial aspects) and it does not provide a sustainable income to see a return