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.So, dissecting this information a little, Everton had borrowed a certain amount of money in February 2004 to shore up a cash shortfall, following a disastrous 2003-04 season (yes the 17th place finish!!!). So no £10 million that year for transfers or income, as many of us possibly thought. The bulk of the 2nd instalment possibly also swallowed up on the back of borrowing for the Beattie deal. So whilst I thought and I am sure many fellow Blues did too, we'd received a vast proportion of the Rooney money for the club, it appears the majority went straight back to the banks.
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.
Note: the following content is not moderated or vetted by the site owners at the time of submission. Comments are the responsibility of the poster. Disclaimer
1 Posted 16/07/2007 at 18:45:59
2 Posted 16/07/2007 at 19:51:11
Of course we need extra players in the squad of that there is no doubt. Digesting everything that has gone on this close season and the comments from the board and Moyes himself, if we get another 3 players in this window (1 permanent) the 2 players we will not have replaced are Kilbane and Davies which to my mind would have been Koumas and Richardson if the price was right. The reality whilst hard to stomach for some of us is that we secured 2 of our better players in Arteta and Cahill, but because of the parity clause we also secured Johnson and Lescott on improved contracts too. Whilst little doubt they would have moved on themselves, depending on who arrives as the permanent signing, the 2 positions of wide left and central midfield playmaker are the 2 priorities to fill. Left back would be nice but I feel we have enough there for the coming season already. Sort that out and we do have enough for the coming season to do well.
3 Posted 16/07/2007 at 21:05:53
4 Posted 16/07/2007 at 22:02:00
I reply to many of the mailbag items and you’ll find that on the whole I am optimistic and applaud David Moyes, appreciate the stability of the club under Bill Kenwright, realise the need for investment which Bill doesn’t have, but don’t want Bill to leave unless the right investment can be found, which means finding someone whose background as well as his/her financial presence is up to scratch which are the 2 main criteria for our great club.
Just for the record I feel we will have a good season and it will not be a failure. We do have to trust Moyes, even though he won’t be able to add his original targets. I am not bothered right now by our other so called rivals spending and feel as though we are still in a stronger position for Europe than we were 2 years ago when we just weren’t ready both mentally and in terms of the quality of the team.
5 Posted 16/07/2007 at 22:08:17
Because BK ?bought out? Johnson doesn?t mean he can?t do wrong. I think you?ll find that when Johnson came in we all thought it was great, players coming in, new stand, then after a while we realised all wasn?t as rosy as we thought and change was needed, oh and by the way, True Blue BK was a member of the board that oversaw the problems at the club under Johnson and did nothing until PJ was basically hounded out by the fans.
DM deserves to be backed this year especially, after being let down last time he got us into Europe it?s the least BK can do for him, but no, he has to shop in Poundland and you think that?s acceptable because BK bought out Johnson. We should trust, without question, the man who promised us FSF and still to this day has not said anything about what happened to it.
Well I love EFC as much as anyone, I believe DM has done a good job overall and I will continue to support him and the players on the park, but it doesn?t mean I will follow blindly. Not questioning the things that you?re unhappy about doesn?t make you a better Evertonian it just gives carte blanche to the people running our club to do what the f**k they like with it.
I already know that you will vote yes to Kirkby without even knowing any details about it and that is what sickens me.
Also, I don?t understand your comparisons with Arsenal, Henry has gone but they are spending to strengthen, and Man U, who have told Heinze he is surplus to requirements by the way, it?s only Liverpool they don?t want him to go to.
6 Posted 17/07/2007 at 01:57:05
Chris Samuelson has failed to find an investor (as promised and he thought he had) to depoist the 20-odd million into the Fortress ?bank account?; therefore, Fortress doesn?t exist. Fortress isn't a company, its an investment vehicle similar to say ?Red Football? which I think is the Glazers ?investment vehicle? for buying Man Utd. Not sure that helps... that's thinking outloud, when that was mentioned.
7 Posted 17/07/2007 at 02:15:19
8 Posted 17/07/2007 at 10:40:18
Add Your Comments
In order to post a comment to Column articles, you need to be logged in as a registered user of the site.
Or Sign up as a ToffeeWeb Member — it's free, takes just a few minutes and will allow you to post your comments on articles and MailBag submissions across the site.