Usmanov

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catcherintherye said:
Surely the issue is whether those billionaires see the football club as a cash cow, an investment, or a toy to put money into?
I don't think anybody is suggesting Everton as a business would be able to go on a spending splurge. The argument is that their owners will continue to maintain the investment in the club, which will not go a lot further due to likely collapsing prices.
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They will keep investing in Everton, that's no doubt but FFP will keep a check on that.

The clubs at the top want to protect their monopoly.
 
catcherintherye said:
It seems to be mainly Liverpool fans struggling with these concepts. They seem to think because everyone loses money, they all lose money equally so the same hierachy is kept. Recessions in general don't do that. They are uneven and generally mess up the existing structures.

It's a bit patchy, but essentially 6 clubs rely more on sponsorship and gate receipts. The deeper the recession gets, and the longer grounds are shut the worse it gets for them. 14 clubs rely on TV revenue. If football keeps going ahead, even in empty grounds, and in a wider recession, it benefits those clubs. I bit of a simplification, but essentially true.

It is why Everton are very keen for it to move forward, and really not massively bothered about empty grounds. As a business, it's not that important. We would lose in 1 months games from Sky, what we would lose in a seasons games across a season.

In all honesty, I don't think people are as yet grasping the nature of the recession we are heading into. Lots of LIverpool fans are just assuming it blows over quickly. There is an assumption because they were well ran pre recession, those same businesses practices mean they are well prepared for the recession. They are not. They are probably the club who have gambled the most on the continued growth in revenues (favouring big contracts, with long deals on high wages, in the hope they gain transfer value).

Retail spending was down 80% last month in America. Right at this moment, Addidas, Nike, Reabok etc are all having crisis meetings, where it's being spelt out to their people in marketing and procurement that savings will have to be found. Outsourcing will be scrapped, and frankly massive sponsorships will become challenged. It will just be a very quick dictat, either secure a massive reduction or terminate it.

Contracts are never water tight (as New Balance have found) but when you've essentially breached contracts in a range of ways (no games, games out of season, empty stadiums, commencing the contract late) you haven't really got a leg to stand on.

As a final aside, more broadly-the league will become more even. I did a quick exercise in placing certain reductions in income, and I suspect we are moving from a period where the turnover gap from biggest to smallest will have gone from 5 times to around 3 times (depending on how severe you feel commercial revenue is hit). That is assuming all European monies are paid too, for both last season and next season-which given where we are looks highly unlikely. Again with UEFA, if the CL doesn't get finished, expect 50%+ of the prize money to drop (as a best case scenario). They may recoup no money, or minimal amounts which they use to pay their own staff with minimal left for clubs.

Ironically the desire to void this years competition is about as stupid demand as you can get for Liverpool fans, who are waiting nervously on about £80million due.
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If my missus fought EFC's corner as much as you do mate I would have married her alot earlier than I did.
 
Moomin said:
We seem to forgot that the majority of teams in this league are owned by multi billionaires.

And they will all be taking a hit in the current situation.

One of the clubs people seem to think will be hit the worst is Spurs, they assume the new stadium revenue losses will be a travesty to them. It will hurt them no doubt but their wages to turnover is 38% , they made a over a 100 million in profit and they have cash rich funds in the bank to the tune of 150 million according to the last set of accounts.

While we posted a loss of over 100 million, have a wages to turnover ratio at 85% and have less than 10 million in the bank.

Yet people think we will be splashing the cash on players, no doubts Moshiri and Usmanov have the cash to splash but will the likes of Spurs , Arsenal etc etc allow us to get away with it??

FFP will have some leeway the next few years but our rivals won't allow us to go crazy and flaunt the rules.
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Spurs & Arsenal don’t run football, so it’s not down to them. And spurs furloughed their staff, so I suppose that says it all.

And what the wage ratio, for City, Utd and Chelsea. Because it hasn’t stopped them spending Over the years.
 
Stephenlloyd said:
Spurs & Arsenal don’t run football, so it’s not down to them. And spurs furloughed their staff, so I suppose that says it all.

And what the wage ratio, for City, Utd and Chelsea. Because it hasn’t stopped them spending Over the years.
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FFP was brought in to protect the teams at the top to stop another Manchester City from happening, they will use it to protect themselves.

The likes of City , United have much bigger turnovers then us and the wages to turnover ratio about 55 - 60%

This season with the losses from TV money and gate receipts we will be in excess 100% of our turnover.

Do you think our rivals will say nothing to the premier league if we go out on a mega splurge and threatning their champions league places??
 

Stephenlloyd said:
Spurs & Arsenal don’t run football, so it’s not down to them. And spurs furloughed their staff, so I suppose that says it all.

And what the wage ratio, for City, Utd and Chelsea. Because it hasn’t stopped them spending Over the years.
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I think City wont care and would love FFP to be relaxed (like us). It may also help their case for Europe.

However United are owned by the Glazers who use it as a cash cow...so with no milk they would be stuffed (note woodward or Solksjaer saying they would spend then doing a uturn).

RS are owned by a fund who have to show positive returns each year...how could they justify to investors going massively into the red?
 
The limiting factor on Everton's finances is the lesser what Moshiri and Usmanov think it's worth spending or FFP.

Personally I think there's still a lot of money to be made from redevelopment of the area around Bramley Moore Dock and if the covid-19 creates a situation that delays this slightly then they'll take that into account. I suppose that you don't get to be billionaires without knowing what an opportunity is and they're already ahead of the great minds of the forum in what they are going to do.

My hope is that the football club and regeneration of the area continue at a fair pace. We shall see.
 
Moomin said:
FFP was brought in to protect the teams at the top to stop another Manchester City from happening, they will use it to protect themselves.

The likes of City , United have much bigger turnovers then us and the wages to turnover ratio about 55 - 60%

This season with the losses from TV money and gate receipts we will be in excess 100% of our turnover.

Do you think our rivals will say nothing to the premier league if we go out on a mega splurge and threatning their champions league places??
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The law of unforeseen consequences can also apply.

The FFP rules suit the biggest and wealthiest but we have never seen or envisaged times like this. Every club is hit hard but the biggest clubs are hit hardest and their income streams have fallen more than any.
To use Everton as a comparision we take in less than 1m per game, Liverpool take in more than three and Utd take in about four.
The sale of merchandising will have been affected , an income stream where the big clubs really bring in a lot of income compared to Everton and other clubs.
I saw recently that the Liverpool payroll was about double the Everton payroll and that would be an average for most of the top four clubs and as you say that is manageable and well within FFP rules when you have an income but when you don't then you have a real problem.

There is money leaking out of football at an alarming rate and really at present there is no end in sight for that , whenever this is finally over I think we may see huge changes in football , but goodness knows what they will be.
 

Moomin said:
FFP was brought in to protect the teams at the top to stop another Manchester City from happening, they will use it to protect themselves.

The likes of City , United have much bigger turnovers then us and the wages to turnover ratio about 55 - 60%

This season with the losses from TV money and gate receipts we will be in excess 100% of our turnover.

Do you think our rivals will say nothing to the premier league if we go out on a mega splurge and threatning their champions league places??
Click to expand...
It was to protect teams like us too. We were always above City until the oil money started flowing in.
 
If he is actually really connected in more than a sponsorship sense we will need him this summer.

we’ve got a huge opportunity with a proven winner.
 

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