The end of our "debt" ???

[pfim]

No, if i took a $40K windfall (let's assume inheritance and not the casino, I'm risk averse) I'd invest it in something that I expect to earn greater than 4% ROI. I have plenty of ideas (my favorite being BRK.B), but at least an broad market index fund.

The point is that paying of debt is neither imaginative nor responsible. In Everton's case, imagine a £30m windfall. What would you want the board to do in January? Pay off the debt? Buy a proper striker?

But you'd still have debt, you debt witch! Burn the witch!

 

[pfim]

Ok, so I have been thinking about our financial situation. You may know better figures than I do but I believe our debt currently stands at about £45m? we also had PLUS £11m from the transfer dealings and possibly a small "kitty" plus the television income is going to be nuts this season £60m is it? Also if Baines goes in January for £20m does this mean we should be debt free at the end of this season or even be in credit? Only worry is Bill et al will put the asking price up for the club!

No reason to pay off the debt if we don't need to.

Paying off the debt has nothing to do with the asking price, if there is one.

No supporter will get anything out of Everton FC paying off debt. Nothing. It just doesn't matter as long as you can service the debt.

 

[tonyhorne]

So what music are we going for?

 

[jamieni]

Think we need financial rather than Economic expertise for this one! I have a degree in economics and work in a government department but couldn't tell you much about individual companies debt. The national debt maybe! Certainly I think that the banks aren't chasing us for money, we're satisfying them in some regard and we can wheel and deal a bit without needing to sell players. The teams like Norwich and so on are playing catch up to us in terms of buying and paying good players and their spending will dry up shortly (capital accumulation if you will).

It's the 'top 6' clubs who have the deepest pockets and will continue to be able to spend which makes Roberto's job difficult. Lukaku is a master stroke in that his goals might get us in the top 5 (just can't see us in top 4) but where do we go when he inevitably goes back to Chelsea at the end of the season? We'll have to make some big decisions because we need that kind of fire power. Baines is a great full back and Barkley a smashing player but without a really top striker we can't hope for better than top 6 or 7.

 

[Foot Long Hot Dog]

£80m turnover.

79% of which goes on players wages = £64m, spread around a squad of 25 players or so.. would mean an average wage of £50k/week.
Obviously there are higher earnings and lower earners. For each £75k/week earner there has to be a £25k/week guy.

We really are hamstrung and won't be able to do anything until we can bump up our revenues. Compare that toe ManU (£363m) turnover or Chelsea (£261m)

& that my friend is the crux of our problem, we're attempting to compete with clubs who are a country mile ahead of us in terms of revenues.

CL, seat prices, larger stadiums, much higher corporate income, bigger, better & more numerous sponsorship deals (see CL for details), more worldwide shirt sales & merchandising revenue (see CL for details) & TV revenue.....

Until we can close the gap on our peers by vastly improving our performance in all of those areas, then only a sugar daddy will ever make a dramatic difference to our long term prospects. It's a sad reality.

 

[jamieni]

& that my friend is the crux of our problem, we're attempting to compete with clubs who are a country mile ahead of us in terms of revenues.

CL, seat prices, larger stadiums, much higher corporate income, bigger, better & more numerous sponsorship deals (see CL for details), more worldwide shirt sales & merchandising revenue (see CL for details) & TV revenue.....


Until we can close the gap on our peers by vastly improving our performance in all of those areas, then only a sugar daddy will ever make a dramatic difference to our long term prospects. It's a sad reality.

Exactly. We can't rely on tv money from the CL. We need to regularly be in the top 4 and hope that some billionaire takes a shine to us and builds a new stadium with corporate facilities.

 

[Chang Elephant]

Why can't we just borrow to pay off the debt quicker ?

 

[evilwebby]

Why can't we just borrow to pay off the debt quicker ?

Like Bernie Madoff?

 

[navidson]

So using 'the debt' as an excuse for not spending any money every year is complete piffle? There have been times (not at the moment to be fair) that I would have been happy to auction off our best talent in order to pay off this debt which has been used as a crippling excuse for almost 20 years!!