The Accounts...

[Stephenlloyd]

A lot of hand wringing from other fans that the club is corrupt and cheated the system by making up Covid losses to avoid sanctions.

At least the PL have bought it.

It’s great we’re using the covid card, are some of these fans from Newcastle? Who used the covid card so they could cancel all there games around Christmas, so they could have new players for the rearranged fixtures

 

[kenada_blue]

I guess the slight relief is that several big earners are off the books in the summer. The downside is many of us were hoping that would free up funds to rebuild the squad. Maybe not the case now?

Terrifying if Moshiri turns off the money tap. Didn't similar happen with Randy Learner at Villa?

Richy and Dom sales will fund transfers.

 

[Stephenlloyd]

We need to get the big earners off the books, start paying sensible wages again (sensible relative to what footballers can earn) and hope Thelwell and Lampard have an eye for a player.

Every player should be up for sale because every player has played their part in getting us into where we are.

And ffs if Moshiri is determined to stay and try and sort this mess out then he needs to give himself a massive slap and then sack everyone at the top and bring in some real quality.

If the worst does happen and we get relegated/go bust, that'll be the last time we have to see this clueless, incompetent board of ours because they'll be finished at this club.

Yes there will be no positives from going down, but the board being finished, will be a very small crumb of comfort.

I would say at a rough guess and the end of last season we had 10 players on over 100k a week. That’s down to 6 now and with sig and delph going that’s 2 more gone.
Add possibly Mina going.

It seems like we’re learning from our mistakes, with the rumour Dele’s wage is a lot based on success on the pitch?

 

[Zatara]

Here's the link to the official accounts that make for some grim reading... if you have the time and appreciation of how a set of accounts are compiled (not a smartass comment, there are many on this forum perfectly capable of reading accounts)...

https://resources.evertonfc.com/evertonfc/document/2022/03/29/7e521047-6d5d-4d2a-af97-1ac4b40137fd/Report-and-Accounts-RGB-A4-v27-SPREADS-.pdf

Following the release of arguably these, the worst set of accounts in the history of Everton Football Club, Esk - who has been consistently correct in predicting the financial plight the club finds itself in - has penned this brief summary of where we're at and how completely dependent upon Moshiri the club currently is.

Everton Report & Accounts for year ending June 2021 – wholly dependent on Moshiri’s financial support

First things first, delaying the publication of reports signed off on 29th October 2021 for a full five months is totally unacceptable from a transparency and accountability perspective. I am aware…

theesk.org

The 3 key takeaways:

1: Moshiri has massively funded and continues to fund the club. The losses arent actually relevant whatsoever...aside from affecting player recruitment.

If I am extremely wealthy i can open a bar or a club for my own pleasure and dont really care about the losses as its a lifestyle purchase and my other investments cover any costs.

For Moshiri it looks like a billionaires lifestyle purchase and his interest from other investments will cover any costs.


2: Clearly the board have performed poorly across all departments.


3: We will be allowed to spend money in the summer, depending on departures (incl out of contract players) as were still within the regulations.


My own opinion is that the value of the club massively increases in 2024 when the stadium is built. That will attract investors, buyers and sponsors...even players lol

At that time (or earlier) we will probably see USM return or a back door open for further investment...aside from the vanilla opportunities available on the market.

What I also see on the playing side is that 2024 will be a restart year for the club. The only players who will be contracted would be:

2025
Keane
Holgate
Godfrey
Gordon
DCL
Branthwaite

2026
Mykolenko

2027
Patterson


Its easy to forget but 2024 is only 2 years away. Last summer we spent £1.7mil and if this and next summer we focus on recycling the players + increase the commercial business + appoint actual professionals to the board then we may be able to emerge from this rather well.

 

[Zatara]

We will see if the premier league follow uefa and change their profit and sustainability rules.

But surely if we drop the wage bill, which will already have dropped ffrom
The 182mil reported yesterday and will drop even more over the next 2 yrs and if we can make money on player trading. I’d imagine we would be in a position to spend again.

Are turn over went up, apparently there’s a new big tv deal on the way. So turn over will keep going up, we just need to reset over the next 2 yrs. and hopefully we can then start again as we move into the new ground

I think we'll be shifting out players on long contracts like Keane/Holgate (2025) as well as Gomes/Iwobi (2024) along with the high earners as a priority.

Anyone on that board or an advisor would recommend the above and investing in upside potential on lower wages.

I'd say all this talk of fraudulent accounts etc are completely wide of the mark. Quite simply put if you sign off as an accountant/accountancy firm on a set of accounts that are fraudulent you go to jail, that's no ifs, buts or maybes you go to jail directly to jail and do not collect your £200 on the way. So the accounts are, i would suggest, valid. The fact they show massive losses like they do should also not come as any great surprise either they were never going to show anything else. I personally think that you will see some purchases in the summer along the lines of the three that ancelloti brought in, but time will tell. The one thing that the accounts do show is moshiri is up to his balls in debt with the club and he would be losing a significant amount if he walked away hence why he chucked in another £100m a few months ago. Moshiri will only look to leave when the stadium is complete which is when the club is likely to be worth its maximum (assuming we haven't been relegated by then of course).

Im yet to see a good argument about why he would sell...unless we continued to sit around or below mid table over the next 3 seasons...

If Lampard and Thelwell do their jobs well and the team gets up to that european competition level again then i can see Moshiri staying long term and pouring a lot more cash in.

 

[greener]

We will see if the premier league follow uefa and change their profit and sustainability rules.

But surely if we drop the wage bill, which will already have dropped ffrom
The 182mil reported yesterday and will drop even more over the next 2 yrs and if we can make money on player trading. I’d imagine we would be in a position to spend again.

Are turn over went up, apparently there’s a new big tv deal on the way. So turn over will keep going up, we just need to reset over the next 2 yrs. and hopefully we can then start again as we move into the new ground

Not a strong point in the past tbh.

 

[jazzy]

The financials tell me what I would expect to see: by any reasonable standard, the club is bankrupt. It's only being kept afloat because its largest creditor apparently thinks he can eventually recover enough of his outlay and continued cash injections to make doing so worthwhile.


Post-COVID, most clubs are in a bad spot. Ours is worse than most due to the magnitude of the cash bleed, relative to the value of assets. Look at it this way: suppose you had the choice of buying West Ham or Everton. West Ham's operating loss and cash bleed are about a quarter of ours, in both cases. If West Ham is worth around 600 million pounds (based on the sale price of a 27% stake a few months ago), we're not.

I can't see why he's still throwing good money after bad. It implies that he cares, which is a good thing. I also fail to see how doing so is anything other than sunk cost fallacy, viewed rationally.

He is still throwing money at because he thinks it's the only way of getting some if not all of his money back.

His belief , surely , is that if the club maintain PL status and the stadium is built he can then sell and get a return on his investment.

If he doesn't continue to fund the club then it goes to the wall and his investment is lost in it's entirety.

 

[Yarrgh]

They’ll want their wages doubled.

Double the OAP pension is doable surely?

 

[jazzy]

Why would that enable spending big?

Exactly. History shows that funding a new ground is a financial millstone when it comes to player recruitment.

 

[Stephenlloyd]

Not a strong point in the past tbh.

But we have players now that we can sell for good money. In the past we’ve tried to keep our best and sell the players that have failed.

A lot of clubs have struggled to sell their cast off’s since covid.

I think transfers are changing, will be smaller deals in the future and more players seeing out their contracts.

 

[Yarrgh]

We will see if the premier league follow uefa and change their profit and sustainability rules.

But surely if we drop the wage bill, which will already have dropped ffrom
The 182mil reported yesterday and will drop even more over the next 2 yrs and if we can make money on player trading. I’d imagine we would be in a position to spend again.

Are turn over went up, apparently there’s a new big tv deal on the way. So turn over will keep going up, we just need to reset over the next 2 yrs. and hopefully we can then start again as we move into the new ground

The Wile E. Coyote survival method. Keep running further into the void. It will be fine until you look down and acknowledge gravity.

 

[ToffeeTim]

The wage budget needs to be reduced substantially. I'm thinking like 50m less.

The only way we can sustain those sort of wages is by selling one player for a high fee every year, and that's not very sustainable either

 

[roy vernon]

I've said for a while that the fans who think we will be able to spend big this summer are misguided.

Forget 'Mosh Man' and his deep pockets. Even if we sell big name players, which i believe we will, Lampard, or whoever our manager is by then, will only get a Percentage of the money raised.

I know that will be tough news for certain posters on here, but, reality is often unpleasant.

 

[Zatara]

He is still throwing money at because he thinks it's the only way of getting some if not all of his money back.

His belief , surely , is that if the club maintain PL status and the stadium is built he can then sell and get a return on his investment.

If he doesn't continue to fund the club then it goes to the wall and his investment is lost in it's entirety.

Exactly. History shows that funding a new ground is a financial millstone when it comes to player recruitment.

Good points here.

However, if you look at from a different angle (that i see this from)...

What if you were worth $3bil and bought Everton as a fan...your other investments were covering any losses suffered from owning the club.

Why would you ever sell?

The tv deals are increasing...club values will continue to increase...its a status symbol and something that you take pleasure from.

The cost of the stadium can be structured so its also covered over the long term by Moshiri himself if he felt he wanted to take that on.

Arsenal fans have been crying about Kroenke for years now, quiet now theyre in 4th with a top young team...if Everton were hovering around the champions league places or even europa league places year on year I could see this being a no brainer for Moshiri to hold onto.

Everything now points to us needing to survive relegation and follow the Arsenal model of signing and developing young players -- something ive been saying for many years.

If we do that with Lampard/Thelwell and things gradually improve then I fully expect Moshiri to massively inject further capital again for new players in 2024. Simply because that should in theory be when were allowed to do so.

 

[Zatara]

The wage budget needs to be reduced substantially. I'm thinking like 50m less.

The only way we can sustain those sort of wages is by selling one player for a high fee every year, and that's not very sustainable either

Its worked for other clubs...in theory we could sell 2 top players this season and 2 next summer and be fine in 2024.

Id actually advocate us doing so this summer as we have the new management team in place.

I've said for a while that the fans who think we will be able to spend big this summer are misguided.

Forget 'Mosh Man' and his deep pockets. Even if we sell big name players, which i believe we will, Lampard, or whoever our manager is by then, will only get a Percentage of the money raised.

I know that will be tough news for certain posters on here, but, reality is often unpleasant.

Last summer we spent £1.7mil...if this summer we breakeven and the same in 2023 im not sure what the issue is?

Why would we only be able to spend a % of sales and not the full amount?

The way FFP/P+S are structured enable clubs to sell players and show those fees on the books immediately...while purchases are spread over the contract length.

So in theory we could sell £100mil worth of players this summer...sign £500mil worth (on lower wages) and have a much healthier set of accounts for player trading.

I dont advocate this for the coming window but thats how the rules are structured.