2007 EFC Accounts
If I understand these figures correctly, losses and profits in last years more or less equal the net loss and profit on player trading in those years. Which would imply that Everton is running break-even, more or less, on 'normal business'. I do not know if I should be happy about that or not.On one side, it's not as bad as the situation at Leeds was. They were throwing money out of the window and needed to play in the Champions League (and reach the last 16 at least!) to reach their break-even point before player trading. At least, that's what I always understood. The Champions League would give us the financial space to buy some extra big guns or to pay off loans, or both. Leeds just needed it to stay afloat.
On the other side, as long as we do not find some new source of money, there has to come a time when we need to sell more than we buy on the player market. Either we sell one of our biggest assets (Arteta, Cahill, Johnson, possibly Vaughan and Anichebe, and Yakubu of course but he only just arrived) or we sell four or five squad rotation players (Hibbert, McFadden, Osman etc). Both options don't look very attractive. Selling one of your best players is obviously not the right way towards silverware. And selling four or five squad players would mean you lose on squad depth, while I believe squad depth is for the first time in years at an acceptable level to compete on more fronts than just in the league. Again, not the right way towards silverware, or you should choose to sacrifice the league and gamble on (one of) the cups. Since the biggest money is made in the league, this would also mean you're taking a big risk financially.
One way or another, we need extra money if we want to remain a buying club. I agree that a new stadium (not necessarily Kirkby, could be the loop, a redeveloped Goodison or something completely different) will probably provide the extra money. But I can't see a new stadium being fully operational before 2011, and that's probably an optimistic timeline.
I'm afraid that as long as we don't qualify for the CL, next summer will see at least one of our highest rated players leave.
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I believe it also states in the accounts that since this date we have additional net transfer debts of a further £18.3 million.
Does this mean that our debt is now £84 million just as we are allso to get further into debt on a new stadium! Much as I’m pleased to see player improvements I do question how sensible it is to have such a level of debt?
Thatis the point we will have to sell some of our players at some point in the future, Everton as business and club cant operate at loss every year
Saying that I think the results are not great this last year, but expect much better results with the new deal, which is clearly the basis for the new loan.
To sum up: I say add it back and look at the cash flow position. In his last report I was gagging for the cash flow, as all could do was hypothisise on where the cash went without it..but what I could tell is the debt is being used to buy players...
better stop now, I got carried away in the blueroom on this before...
Sky provides money, the CL provides money, the spectators, me and you, provide money.
If stadiums provided money, BIG money, not conferences and concerts, especially new ones, then Bolton, Derby, Sunderland, etc etc would be awash with the stuff.
Success on the field provides money...Get the team winning on a regular basis and all this will follow.
Most of the Prem seems to be some sort of financial house of cards and if the football equiv of the Sub Prime market comes about then we’re all in deep shit and little good that it will do us, we won’t be the worst, we’ll just be one among many.
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1 Posted 15/11/2007 at 13:10:18
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Surely the writing off (amortisation) of player registrations is simply a "paper" figure, particularly right now. Removing this would give us a profit of £1M, or am I missing something here?
On a more entertaining note, lets hope we get t’shite in UEFA Cup final and turn them over big stylee!! COYB