Summer Transfer Pot

[Jeff Jones]

At the end of every season I read about the pot of gold coming to the three clubs promoted from the 2nd div, sorry, championship.

I read last week that it will be worth 120 million pounds to Hull. I've never been able to work out if that means 120 more
than they got before, or that it goes up to 120 from whatever they got previously.

I just don't understand how Everton can be in financial difficulty given that they've been in the Premier League forever.

I read the annual report a few years ago and came to the conclusion that while it was not likely that Everton could make a
profit often, it should be around break even or just a little in deficit, on average.

I know that the wage bill has been high in relation to turnover, but it must have improved with player sales. Arteta and Cahill for example to name just two. Our last big money buy was Bily, from memory, so we haven't had a big addition to the wage bill, unless I've forgotten someone. I'm basing that on the thought that new signings like Jelavic and Mirallas wouldn't be high earners - yet - and that big money signings would command higher wages.

I don't think the extra TV money will help much in the long term because it will just put wages and transfer fees up before
long. Maybe sooner than we might think.

It might not impact as much on foreign buys so let's hope our new manager has as good a grasp on other leagues as Moyes does.

 

[Julian Carax]

To Maderia and Taribo West lads.

 

[SingBlue]

Cash flow plays an important role for a club like Everton.
TV money is split between overseas and domestic.
Currently, overseas is around £18m per annum, and is paid in equal monthly installments (this was brought in after the Portsmouth fiasco, to help clubs budget). The new overseas deal has also increased significantly.

Domestic tv revenue is split - 50% is equal share to all clubs, 25% facility fees (appearances live in UK) and 25% merit (final league placement). So obviously merit is paid at season end, facility fees quarterly I believe. The equal share is paid in two parts - August and January.

So the club has a fair idea of when and where the money hits. Of course, we had a big chunk of money due in January, when we couldn't complete the Leroy Fer deal. Except that money had already been borrowed against with the Vibrac loan.

 

[LTblue]

At the end of every season I read about the pot of gold coming to the three clubs promoted from the 2nd div, sorry, championship.

I read last week that it will be worth 120 million pounds to Hull. I've never been able to work out if that means 120 more
than they got before, or that it goes up to 120 from whatever they got previously.

I just don't understand how Everton can be in financial difficulty given that they've been in the Premier League forever.

I read the annual report a few years ago and came to the conclusion that while it was not likely that Everton could make a
profit often, it should be around break even or just a little in deficit, on average.

I know that the wage bill has been high in relation to turnover, but it must have improved with player sales. Arteta and Cahill for example to name just two. Our last big money buy was Bily, from memory, so we haven't had a big addition to the wage bill, unless I've forgotten someone. I'm basing that on the thought that new signings like Jelavic and Mirallas wouldn't be high earners - yet - and that big money signings would command higher wages.

I don't think the extra TV money will help much in the long term because it will just put wages and transfer fees up before
long. Maybe sooner than we might think.

It might not impact as much on foreign buys so let's hope our new manager has as good a grasp on other leagues as Moyes does.

It's not that, more the fact that there are 6 clubs richer than us.

 

[mill]

I think some people are going to be disappointed this summer.

 

[LTblue]

 

[D410]

however you could be more right than you think. I can,t remember a MORE pivotal time for our club like this since Howard left the club the first time.

What we have to spend will be huge for the next manager.

 

[Ihaters]

I reckon the new manager will have about 5mil+ whatever he sells I reckon. The rest will head into the debt. Clearing that over a couple of years and then the third year to go toward a stadium. That's my guess, I have no idea of course.
I simply cannot imagine Everton having money to spend, it just doesn't seem possible. Imagine having a 30mil transfer blow out... Doesn't compute.

 

[sportbillyblue]

I'm going to go for a strong skunk and magic mushrooms to get me through this transfer window.

Also, going to look into DMT.

haha .. just got that after I read about another UFC being caught on weed (and still trying to figure out how that works, trying to cave in someone's skull is the last thing I'm capable of when I'm on some nutty skunk).

 

[Essex Blue]

Your determination to will this extra 40m into existence is admirable.

I don't need to will anything into existence because it's a real life deal that has been struck between media companies and the Premier League.

What I might be doing is trying to work against this ridiculous idea that everyone else will get the cash but Everton won't, or that it 'won't make any difference', or the idea that Everton are in such a bad financial state that the bank will control where the money goes.

Evertonians should be lobbying for this real life cash to be spent on squad improvement, but the majority of them seem to be providing Bill with an excuse for not spending it before it has even arrived. God knows why?

 

[BirkenheadBlue]

I don't need to will anything into existence because it's a real life deal that has been struck between media companies and the Premier League.

What I might be doing is trying to work against this ridiculous idea that everyone else will get the cash but Everton won't, or that it 'won't make any difference', or the idea that Everton are in such a bad financial state that the bank will control where the money goes.

Evertonians should be lobbying for this real life cash to be spent on squad improvement, but the majority of them seem to be providing Bill with an excuse for not spending it before it has even arrived. God knows why?

Have you got any references for this EXTRA £40m figure? Cos I was pretty sure it's an extra £20m on top of what each club was getting before.

EDIT: Just did a bit of research, and it seems that over the course of the season the total will in fact go up by about 40m on what the same positioned club would have earned this season.

Of course not all of that is being paid this summer, but still, it's a frightening amount of money.

If we don't make substantial investment in the squad this summer, somebody (and I think we know who) needs shooting.

 

[Essex Blue]

Someone posted an absolutely brilliant link on here a few weeks ago, it was like a football/business analysis website and it had a number of good articles on the subject.

 

[Hellerad]

If every team is given the same allocation, the only advantage a team will have is the exact same advantage it had before the allocation.

EFC has 10. EFC needs 20 to balance its operating costs and loans. EFC is allocated 40. EFC has 30.

MUFC has 70. MUFC needs 80 to balance its operating costs and Glazer loans. MUFC is allocated 40 and earns 200 from sponsors and merchandise. MUFC has 230.

MCFC has 300. MCFC doesn't care what it needs to balance its loans and costs because its monopoly money. MCFC is allocated 40. MCFC wipes its arse with the 40, signs Tom Carroll for 20 to keep the bench warm, points to another 100 it found in the couch cushions, and eats some ghuzi.

 

[Ihaters]

If every team is given the same allocation, the only advantage a team will have is the exact same advantage it had before the allocation.

EFC has 10. EFC needs 20 to balance its operating costs and loans. EFC is allocated 40. EFC has 30.

MUFC has 70. MUFC needs 80 to balance its operating costs and Glazer loans. MUFC is allocated 40 and earns 200 from sponsors and merchandise. MUFC has 230.

MCFC has 300. MCFC doesn't care what it needs to balance its loans and costs because its monopoly money. MCFC is allocated 40. MCFC wipes its arse with the 40, signs Tom Carroll for 20 to keep the bench warm, points to another 100 it found in the couch cushions, and eats some ghuzi.

Whilst technically correct, the bigger difference is that whereas United change to say 230 and we change from nothing to 30.. Its the nothing that is the difference here. We don't have to sell to buy.. We can just add a player.

This season's Everton squad and manager, plus a 30mil striker for us would surely of seen us higher up the league. United with another 30mil striker would see them with another rotation option up front.. meh.

Whilst everyone gets the same advantage in a way, for some that equal advantage is more benefical than to others. What difference does 30mil make to City? Could we close the gap with 30mil if they spend 100mil? Well actually yeah, if our manager is better than theirs at buying players.

 

[Hellerad]

Yes. I think you are stating there is a soft and hard cap for improving a team. Pound for pound, Everton will get a greater value out of money spent because there is more room for improvement in the squad, whereas Manchester United are trying to replace very good players with slightly better players. That makes complete sense.

If we were going to have Moyes at the helm bringing in the new players, I would feel very good about that; however, we have no idea how effective the new manager and his staff will be at identifying available players and getting them for a good price. Even though, Everton can spend less to improve the squad, it also has much less room for error.

Fingers crossed.