The Mail Bag
£21 Million bank loan
Comments (18)
Did Bill Kenwright go to Barclays Bank and borrow £20 million quid to buy Yakubu and Fernandes? If this is the case how much debt is this club in to the Banks and how much money will be available over the next 3 ? 5 years for transfers? What is the businesses plan and what is the projected intake of the club over the next few years.
These are a few questions we need answering the reason being I just hope that Billy (top business man) Kenwright does not take us down a similar route Leeds went.
I am no financial expert but just going over old FT media I reckon Everton Football club are in debt to the tune of £65 -75 million pound and that is with current low interest rates, imagine if they was to go up by a couple of points. How does this look to potential investors £80 million black hole to be filled before you even look at investing in the team, ground or any other infrastructure of the club.
This Tesco deal looks more and more suspect to me, I wonder how much Kenwright as gambled with the Name of Everton Football Club, what is actually in the small print. Who said this was the ?deal? of the century? In any deal there is always small print and some strings attached. Let us all hope there is a thing called free lunch.
Carl Simpson, Posted 23/10/2007 at 09:02:48
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Michael Kenrick
Oh no... someone's done the numbers and seen the light (or darkness more like!). The debt level is a serious issue... but there is no other way we can compete.
Sur Jo
1 Posted 23/10/2007 at 14:58:35
1 Posted 23/10/2007 at 14:58:35
Borrowings for the year 2006 have decreased further to £28.0m (2005:£28.3m), of which £24.8m is not due for repayment for more than five years. The net debt position, meanwhile, now stands at £21.8m (2005:£19.5m). Source: http://www.evertonfc.com/assets/_files/documents/dec_06/efc__1165920924_EFC_Report_and_Accounts_2006.pdf
It may be true that BK borrowed the funds to finance the Yakubu deal. Could you please cite the FT media you are referring to as if our debt has increased to the level you are suggesting, then it is worrying times for our club financially? I thought that EFC is working to decrease or maintain its debt level, but not to increase it. I hate to see bankruptcy at EFC.
It may be true that BK borrowed the funds to finance the Yakubu deal. Could you please cite the FT media you are referring to as if our debt has increased to the level you are suggesting, then it is worrying times for our club financially? I thought that EFC is working to decrease or maintain its debt level, but not to increase it. I hate to see bankruptcy at EFC.
Tony Bently
2 Posted 23/10/2007 at 15:17:16
2 Posted 23/10/2007 at 15:17:16
This bank loan is actually 21 million I am not sure what deal they got with the bank over repayments etc, but if you do some basic maths of say you borrwed 600 grand over 25 years at 5.5% you pay back £1 141,920 I know there are commercial loans etc but take twenty million and even take that loan over 10 years at reduced or fixed rate your talking serious money. You cant reduce debt by taking these type of loans out. They will not show up on the accounts for another year or so and sometimes these loans are stagered anyway but with any loan you must have security. That is why Everton are taking the tesco option I hate the thought of Kirby but unless we get some Russian or far east sugar daddy who is prepared to under write our debt it could be fait au compli
Roger Toomey
3 Posted 23/10/2007 at 15:52:02
3 Posted 23/10/2007 at 15:52:02
Why do so many Evertonians agonize over the Club’s financial dealings.They are entirely the responsibility of the Board and its CEO and should be of no concern to us mere mortals.Even if it were found that the Club was going down the same path as Leeds Unt.,what the hell could we on Toffeeweb do about it?
Mick Mac
4 Posted 23/10/2007 at 16:02:06
4 Posted 23/10/2007 at 16:02:06
Roger people are concerned about the club that is why, this club belongs to Evertonians just as much if not more than the board so if it is being mis manged we have every right to voice are concerns either on here or any other message board. To me you sound like you dont give a fuck about this club so if thats the case why do you come on here and leave a comment if your not bothered. There are people who do read this board who can influence the board because they are share holders in the club and if you cant understand that maybe you should start to watch another sport like ping pong or badminton were money is not such an issue. Myself I think you just dont give a fuck either way about EFC. you see I do care how are club is managed or mismanaged that is the way it is these days or are you another one of these fans who last went the match in the 70s when we did not have to worry about the finaces of the club, I wish we did not have to worry about this issue but in todays world it is a big part of the club and its supporters.
Roger Toomey
5 Posted 23/10/2007 at 16:16:46
5 Posted 23/10/2007 at 16:16:46
Yet more abuse from someone such a great Evertonian,he’s afraid to give his name!
Just to make it clear,dear boy,Most of us are just supporters of this great club.We have no fiduciary interest or influence in its affairs and the shareholders elect a Board to run the show.
Of couse I don’t want it to go tits up but that’s hardly likely so I choose not to agonise over things I cannot influence.
In the meantime,I shall go on purchasing my season ticket,cup tickets and European travel unfettered by concerns of how exactly the Board paid for any player.I suggest you do the same,you’ll sleep better!
Just to make it clear,dear boy,Most of us are just supporters of this great club.We have no fiduciary interest or influence in its affairs and the shareholders elect a Board to run the show.
Of couse I don’t want it to go tits up but that’s hardly likely so I choose not to agonise over things I cannot influence.
In the meantime,I shall go on purchasing my season ticket,cup tickets and European travel unfettered by concerns of how exactly the Board paid for any player.I suggest you do the same,you’ll sleep better!
Arthur jones
6 Posted 23/10/2007 at 16:30:37
6 Posted 23/10/2007 at 16:30:37
I was under the impression that this was not a bank loan but according to Wyness’s statement to the shareholders Barclay’s extended their overdraft facility to £25m , which in effect gave them a pot of £25m to dip in to and replace as is seen fit by the board and the bank . the same as if you or I were given an overdraft facility, obviously not to the same amount . This of course will be subject to interest payments which will mean the quicker the overdraft is serviced the less charges they are liable to.
I would be interested to know what the current amount overdrawn is and therefore how much from this " pot " s available for future transfers
I would be interested to know what the current amount overdrawn is and therefore how much from this " pot " s available for future transfers
Paul Simpson
7 Posted 23/10/2007 at 16:40:02
7 Posted 23/10/2007 at 16:40:02
Listen Roger I don’t understand what your saying, on one hand you are saying we have no influence on the finance of the club, but we dont have any influence on team selection, tactics, transfers and the price of a pie but we still come on here voicing opinions and phone ins etc so what is the diffrence? why if you have no interest whatsoever why even bother posting, if its not your cup of tea just move on to a post you are into or just fuck off to some other site its easy
Dave Roberts
8 Posted 23/10/2007 at 17:23:05
8 Posted 23/10/2007 at 17:23:05
Roger Toomey,
What it is, is that some of our Evertonian brothers and sisters just have to have something to moan about. We have been ’united’ in moaning about Saturday’s injustices and inept/corrupt referees for a few days but that is beginning to wear a bit thin now so they resurrect this hoary old chestnut. Believe it or not, this issue was the origin of a couple of lengthy threads about 5 or 6 weeks ago and that is why I find it surprising that MK treats the original post (in this thread) as if it was a revelation. It is all so utterly boring. Football Clubs, generally, run on debt. It has always been that way and probably always will.
What it is, is that some of our Evertonian brothers and sisters just have to have something to moan about. We have been ’united’ in moaning about Saturday’s injustices and inept/corrupt referees for a few days but that is beginning to wear a bit thin now so they resurrect this hoary old chestnut. Believe it or not, this issue was the origin of a couple of lengthy threads about 5 or 6 weeks ago and that is why I find it surprising that MK treats the original post (in this thread) as if it was a revelation. It is all so utterly boring. Football Clubs, generally, run on debt. It has always been that way and probably always will.
tom morris
9 Posted 23/10/2007 at 17:55:34
9 Posted 23/10/2007 at 17:55:34
Roger Toomey, Dave Roberts.
Spot on lads.
To listen to some, it would seem that this is the only club that borrows money and has a debt to repay.
Funny, I thought that was how things worked these days. The two yanks across the park bought that shower with their pocket money did they ? And they’re paying for their new stadium with the money they found down the back of the sofa ?
And Carl, you’re right mate. You’re definitely no financial expert.
Spot on lads.
To listen to some, it would seem that this is the only club that borrows money and has a debt to repay.
Funny, I thought that was how things worked these days. The two yanks across the park bought that shower with their pocket money did they ? And they’re paying for their new stadium with the money they found down the back of the sofa ?
And Carl, you’re right mate. You’re definitely no financial expert.
AJW
10 Posted 23/10/2007 at 17:53:14
10 Posted 23/10/2007 at 17:53:14
People moan when we buy and moan again when we dont!!! Leave it to the Board to issue annual accounts and read fact!!! It is an overdraft we have to help assist in the the transfer window and the fact we get staggered income from sky, PL, UEFA, FA etc . Most companies have such a facility and EFC are no different. Please give Kirkby a rest its old hat, time to move forward and talk about footy and rubbish refs and not a stupid plane flying around when the votes have been counted. Maybe the KEIOC paid in instalments and it arrived 2 months late like the leaflets at the Man Utd game !! your are becoming an embarassment to us all move on, I have. EFC
Billy Ferguson
11 Posted 23/10/2007 at 18:07:45
11 Posted 23/10/2007 at 18:07:45
Hay tom I wouldn’t want to see your bank statement, I suppose your one of these who live on the never never and drive a nice car that the bank own and when you default the bailiffs pay a visit. No your wrong not all clubs operate like Everton, look at Spurs books. The bottom line is we are one of the worst run clubs in the league. Carl might not be a financial expert but fuck me you cant even add up, yeah your right thats how things work for the nob heads who borrow money they will never pay back, live on plastic just like EFC.
Billy Ferguson
12 Posted 23/10/2007 at 18:13:48
12 Posted 23/10/2007 at 18:13:48
Fuck me cant you lot see past your own noses EVERTON ARE SKINT, skint because we have a fucking chairman who has not got ten bob, and who wont sell up and does deals with Tesco because there is no other investor who would touch EFC. Why is it that when ever there is talk of a takeover we are not even on the radar answer because we are in so much debt. You accept the kirkby option why! because you know its the only option, what does that say for the people who run this club only option is invite Tesco in and surrender the city fucking laughing stock we are
Dave wilson
13 Posted 23/10/2007 at 18:42:13
13 Posted 23/10/2007 at 18:42:13
Billy Ferguson
Your banging your head against a brick wall mate, these guys cant see that not caring about finances is the same as not caring about the clubs future.
I bet 5 years ago Leeds had fans eactly like this, who readily buried their heads in the sand
I’ll tell you one thing, they fucking care now
Your banging your head against a brick wall mate, these guys cant see that not caring about finances is the same as not caring about the clubs future.
I bet 5 years ago Leeds had fans eactly like this, who readily buried their heads in the sand
I’ll tell you one thing, they fucking care now
Dave Roberts
14 Posted 23/10/2007 at 19:43:50
14 Posted 23/10/2007 at 19:43:50
Billy Ferguson,
Your premise is false. Newcastle were in far more debt than Everton...on the point of collapse according to the press...and they were taken over by an investor. At the point when Abramovich took over Chelsea they were about to call in the receivers! Businesses on the point of collapse are very often good propositions for takeovers because the investors can drive a harder bargain and get more for their money. Everton are NOT on the point of collapse or the Bank would not have provided the overdraft facility.
Your premise is false. Newcastle were in far more debt than Everton...on the point of collapse according to the press...and they were taken over by an investor. At the point when Abramovich took over Chelsea they were about to call in the receivers! Businesses on the point of collapse are very often good propositions for takeovers because the investors can drive a harder bargain and get more for their money. Everton are NOT on the point of collapse or the Bank would not have provided the overdraft facility.
Dave Roberts
15 Posted 23/10/2007 at 19:52:26
15 Posted 23/10/2007 at 19:52:26
Dave Wilson,
Your premise is wrong too. Leeds borrowed vast amounts of money in the expectation of many years of CL football. When they failed to qualify and couldn’t get their snouts in the trough the world collapsed around their ears. Everton have borrowed a comparitively small amount of money just to provide a bit of working capital and a bit of muscle in the transfer market. Most businesses do that from time to time. Not in the same league as what Leeds did.
Your premise is wrong too. Leeds borrowed vast amounts of money in the expectation of many years of CL football. When they failed to qualify and couldn’t get their snouts in the trough the world collapsed around their ears. Everton have borrowed a comparitively small amount of money just to provide a bit of working capital and a bit of muscle in the transfer market. Most businesses do that from time to time. Not in the same league as what Leeds did.
Andy H
16 Posted 23/10/2007 at 21:47:54
16 Posted 23/10/2007 at 21:47:54
If any of you were not aware. Wyness gave answers to this at a recent Shareholders Q & A. Everton did not ’borrow’ an extra £20 million. However, they did agree an overdraft facility of £25 Million, which to quote Wyness ’remains untouched’.
Before anyone has a pop, I think the full Q & A session is on the Shareholders website
Before anyone has a pop, I think the full Q & A session is on the Shareholders website
Tom Hughes
17 Posted 24/10/2007 at 13:43:19
17 Posted 24/10/2007 at 13:43:19
"If any of you were not aware. Wyness gave answers to this at a recent Shareholders Q & A. Everton did not ?borrow? an extra £20 million. However, they did agree an overdraft facility of £25 Million, which to quote Wyness ?remains untouched?."
Thank feck for that then, because he’ll need to extend that substantially for the Kirkby project..... didn’t he say it will cost the club at least £50m in that interview...... funny that, he said it would be "practically nothing" pre-vote. How times change?!! I remember when £50m was a lot.
Thank feck for that then, because he’ll need to extend that substantially for the Kirkby project..... didn’t he say it will cost the club at least £50m in that interview...... funny that, he said it would be "practically nothing" pre-vote. How times change?!! I remember when £50m was a lot.
Tom Hughes
18 Posted 24/10/2007 at 14:01:20
18 Posted 24/10/2007 at 14:01:20
I don’t profess to understanding the world of finance..... however, I am glad to see my fellow blues keeping their eyes on money matters, especially if they demonstrate the kind of awareness and understanding that seems to be the case in these articles. What mystifies me is.....Why do some blues feel the need to berate them? Is it a case that some who voted yes are worried that their findings regarding accounts etc may expose their niaivity when making their choice? It would appear some people never wish to be informed..... since ignorance is bliss.
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