The Mail Bag
Limited income
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In an article in the Observer in Aug 2007 it was stated:
?In March 2002 Everton borrowed £30m from the Prudential, secured on future ticket sales, at 7.79%, £2.8m-a-year interest, which will cost £70m over 25 years to repay. Two years ago the club sold its megastore and now leases it back, a device it repeated last year, selling its site at Finch Farm and leasing it back to fund its new training facility there. Earlier this year Barclays Bank took a mortgage over Everton's TV money to secure the club's overdraft, which had a limit of £14m?????.
Everton's own US investor, Robert Earl, has not facilitated spending on a grand scale. Founder of the Planet Hollywood chain, Earl bought Paul Gregg's 23% stake in Everton for a reported £9m last October, since when his involvement has been low key. In June, he became an Everton director; his presence on the board is said to be allowing the club more leeway from its bankers to find money for David Moyes, right, to spend on players.?
What is glaringly obvious is that all our income streams have been allocated.
Nevertheless, is it fair to blame Bill Kenwright because he does not have the wealth of Abramovic? It seems to me that he has begged and borrowed from his friends to keep us in the game over the last few years. Our credit ratings must be dire and the chance of borrowing much more must be slim. Like it or not DK was a feasible way to increase borrowing / attract inward investment and I guess BK is personally distraught at the moment. He knows we cannot compete in the transfer market, players agents will be advising that we are a club with problems and DM will need to work even harder to get players in.
On a positive note, I do not believe DM will leave us because of the current problems. He may leave if he gets a job offer from somewhere with money ? and that is not unique to EFC. I also believe we may see more influence from Philip Green now that Wyness is out of the way ? as he will know that a moderate amount invested (say £30m) now on players of the right quality could well see us break the top 4 this season. The income, status etc that would bring will attract investment.
BK said we needed a billionaire ? come on Philip please.
Andrew Mahon, Posted 06/08/2008 at 22:49:30
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Now it is time to get over it and now the current board need to stand up and be counted for. Show that they are all competent, pro-active and forward thinking and not talk about puting all your eggs in one basket.
This has been called in because of the size of the retail plan in the proposed location. It has nothing, NOTHING whatsoever to do with Everton FC and the proposed new stadium.
Nor will you hear doom or gloom from me. The inevitable delay that now results will, IMO, definitely stall our recent evident progress as a club. It may well impact negatively on DM’s ability to continue to invest in and improve the team. It will not be terminable.
So, unlike many in the anti-Kirkby lobby who constantly predicted that moving the club there WOULD doom the club and who also pouted that they would no longer consider the club was truly Everton, my support remains unwavering in spite of my concerns of what this call in could do to the short and long term development of the Blues. I will support them - FOREVER! - regardless of where they play or in what division they play...
NSNO.
The NO lobby played their part, though probably not as much as objections from local councils (some also Evertonian NO voters).
There are now 2 costs to the club - lost time and lost money if (when) costs rise over the next year or two. Tesco could make up the difference for us if the project still proves to have enough in it for them after the enquiry - we now have to wait and see. I hope the decision is made sooner rather than later for everyones sake.
However, the real issue now is this - We’re obviously skint, in loads of debt, our stadium is inadequate - like it or not, and our plans to replace it seem to have gone belly-up. Consequently, it would be sensible to suggest that we’re not an attractive proposition to investors.
So what now?
if we earn roughly the same amount this season, I would like to question the idea that we are skint and cannot afford players or stadium improvments. We may have debts and maybe we don’t generate as much money as the sky 4 but I don’t think it is all doom and gloom, even if DK is down the pan.
http://news.bbc.co.uk/sport1/hi/football/7546968.stm
After the summer we’ve had it would make sense!
Kirkby gets governmental OK.
Tesco and Knowsley council are up for it. Do we also go for it or do we still wait for a billionaire?
You forget that the season tickets sales, tv revenue money are all mortgaged as collateral against existing debts and the development of finch farm.
Take into account the interest on the loans and debts as well.
The biggest problem we have and I have gone on about this ad nauseum is the poor level of commercial income compared to other clubs.
I often use this example because I saw the numbers, but Spurs (with a maximum capacity of only 36000) total income from 2006 was 104 million of which 40 million was commercial income other than TV money.
EFC by comparison was less than 1 million for commercial income and had dropped to 51 million total income.
Now assuming all the players who have left (Carsley.Fernandes,Gravesen,Stubbs,Gardner,McFadden)and reserve contracts that were not renewed last season probably account for over 10 million a year that should allow us to bring in Mouthino and 2 others without increasing costs by more than 6 million a year giving us a saving of about 4 million a year on costs.
If ,and I doubt it given the start of the season we’re likely to have, we could just maintain 5th or better we would see a shift in our bottom line towards breakeven and if we could just get the marketing right our commercial income would improve to take us into profit despite the ball and chain of interest that BK’s regime have saddled us with.
I’m pleased we are not going to Kirkby, there are better locations, but can we afford them? Probably not, but I think we could afford a shared stadium if we chipped in, Liverpool too and the council + sponsorships etc.. To get it to work for us 7 days a week though we need a better location than Stanley Park
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1 Posted 07/08/2008 at 06:56:05
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Guys
It?s you who?ve put us in this position, it was you who jumped in with both feet dispite clear warnings there was NO plan B, it was you who decided the club were right to waste years chasing a plan that was always going to struggle to get approval.
This is what happens when plan A fails and you?ve gone ahead and voted for an idea thet offered NO alternative.
As for DM leaving?
He has two choices, sign a contract that will be worth about £15 million over 5 years, or be out of work, hoping on the off chance he?ll get a better offer . . . . .tough call for him that isnt it?
He?s going nowhere,
We?ve been in the top flight for 50 odd consecutive years, funnily enough we?ve been at GP for all of that time, now your "no plan B" idea has gone belly up we?re suddenly DOOOOOOMED.
Pull yourselves together!