Everton 'A Soap Opera'

This brought me to an excellent article written by TW's very own Colm Kavanagh in the Spring of 2005. Essentially trying to establish some answers to the farce of the Fortress Sport's Fund and all the associated furore surrounding it, there is a section in the article which removes any uncertainty that Everton did not receive the first installment of the Rooney transfer for themselves and neither the majority of the second one either. Its reproduced here as written By Colm originally:-

"The first tranche of Rooney transfer money went straight back to Singer and Friedlander and there are grounds for argument that the Beattie money was a loan advanced on the strength of the second instalment of Rooney money due. Furthermore, it will take a series of astounding results for us to secure this touted figure of £27m. The small print in the transfer indicated the following: ?.. Contingent payments of up to £7.0m payable on the occurrence of the following events during the next 5 years - * Manchester United, European Champions League Winners - £1.0m * Manchester United, European Champions League Runners Up - £0.5m * FA Premiership Winners - £0.5m * FA Premiership Runners Up - £0.25m * FA Cup Winners - £0.15m * Rooney signs an extension to his contract at Manchester United - £1.5m * Rooney earns 20 England caps in competitive games whilst at United - £0.5m * Rooney plays a further 20 England caps in competitive games whilst at United - £0.5m Even if these events do not occur, Everton will receive £3.0m provided Rooney remains registered to Manchester United until 30th June 2007. This sum will be payable in equal instalments of £1.0m on 1st August 2006, 2007 and 2008 if not already paid via the above incentives. If the player is transferred from Manchester United then Everton will receive 25% of any excess sum over all amounts paid under this agreement.

As we've only had last season as a decent one since 2005, no new investment and the TV money and normal income streams paying the wages, operating costs, ongoing borrowing (overdraft etc) and creditors (transfer instalments etc) as well as the £2.5m per year long term borrowing, it becomes a lot clearer that they are unfortunately operating on a hand to mouth basis most of the time. Money comes in, money goes out without much room for revenue retention, hence our current financial situation. That is apart from us knowing whether the new TV money due to clubs will in our case be set aside for the new stadium when it arrives.

Maybe Everton are taking a gamble that they will still finish inside the top 10 this year as without such a finish and a continuation of putting money aside next year, there is a strong possibility that the transfer kitty would be even less next year as Everton require more than half of the TV revenue just to cover their normal costs throughout the year, looking at previous years accounts. This of course though depends whether any proposed ring-fencing is a one-off as without it Everton would potentially have a significant budget next year but would that be too little too late?

This is Everton after all, so absolutely anything could and probably will happen. Carry on watching and don't foget what you see and hear.

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