Why we need a new stadium?

[GrandOldTeam]

From last season but cant see it changing...

http://www.telegraph.co.uk/sport/main.jhtml?xml=/sport/2008/05/29/sfndel129.xml

5. Everton:
Everton failed to raise enough revenue to cancel out their wage bill during 2006/07, and in fact were left with a deficit of £8.1 million, despite finishing sixth in the league and being well below the Premiership wage average. The club was also below the league average for stadium utilisation last season.

Combined with Wyness' latest comments which basically stated the obvious that no investor would touch us when the first job is to build a new stadium... and even if they did, do you think they would turn down an offer such as the Kirkby deal?

 

[Bruce Wayne]

What it does show is what a parlous state most PL clubs finances are in. Villa are in reasonable shape but still lost money and have sizeable debts.

Blackburn spend a huge amount of their turnover on wages and are pretty much up to the limit.

Pompey are the same. Man City have wages under control but have pretty hefty debts.

West Ham are in the poop. Newcastle and Boro on the brink.

 

[Sim]

Its ironic that in an era when premiership football clubs have the most money they also have never been in so much debt.

Its really worrying what could happen to football if the TV money were to drop out. You never know, but the economy is slumping right now and this will probably have a knock on affect to football.

 

[Bruce Wayne]

Nah, tv money will keep rising, just like the property market

 

[Nebbiolo]

Nah, tv money will keep rising, just like the property market

That's funny Bruce because I was also contemplating when, and I'm sure it'll happen, the big crash happens in football. You can't have these businesses operating and continually making losses or, at best, making marginal profits. Something will give sooner or later and I'm glad that we at least seem to be trying to be good at the housekeeping.

 

[Bruce Wayne]

It's fine if you're spending money you're generating yourself, but many teams seem to be spending credit rather than earnings.

When you do that it becomes like a pyramid scheme. Where's the money coming from to keep the system going?

 

[Nebbiolo]

It's fine if you're spending money you're generating yourself, but many teams seem to be spending credit rather than earnings.

When you do that it becomes like a pyramid scheme. Where's the money coming from to keep the system going?

I think a lot of people confuse income with profit. They see the millions in income as indicative of how much cash we have to spend. They also seem to forget that new signings mean new wages, a bill that runs into millions.

 

[Bruce Wayne]

Not to mention associating wealthy investors with santa claus. A quick look at these accounts shows that most backers are ladening the club with big loans, and any money they do 'give' is in the form of loans rather than gifts.

 

[coyney]

What also is not taken on board is a lot of players who leave are still getting paid by us,It was Grahame Sharpe who pointed this out the year we were very close to going down,because the wages in the prem are so high(and this was years ago!)a lot of transfer deals include us paying a part of the players wages so that they will go the reasoning being that we still save some cash but when a player moves unless its to a big club there is now guarantee that hes off the wage bill

 

[galaxtico]

A capacity of 60,000 seems fine to me.

 

[coyney]

Not to mention associating wealthy investors with santa claus. A quick look at these accounts shows that most backers are ladening the club with big loans, and any money they do 'give' is in the form of loans rather than gifts.

I cant wait for the Chelsea owner to get bored apparently the club would then have 18months to clear his loans,that would be the fire sale of all time

 

[DENNIS STEVENS]

wyness tells us the prime reason for moving is to generate additional funds for moyes transfer kitty. he also estimates that additional revenue from the new stadium will be approximately £10 million, so after the deduction of additional costs any profit left may, hopefully, be offered to moyes. however, all the news we hear seems to be about possible delays, increased steel prices & increased borrowing requirements for the club to fund it's share, so will there be any profit at all? it just seems to me that the board are taking a huge gamble in the hope of only a small return, at best.

as for investors - why would they want to pay for the stadium in kirkby when it's too late for them to have any input & they've missed out on any potential earnings from the scheme?