The Mail Bag
Kirkby and the purse strings
Comments (40)
Forgive me if this post comes across as completely naive on my part but I cannot help be but completely perplexed by this whole Kirkby scenario and how it affects our spending this pre-season.
Some media outlets say that how much David Moyes has to spend depends entirely on whether Destination Kirkby actually goes through; however, I am bemused by this. In what way would our spending be affected, and why should money for a stadium project affect squad building? Surely these are two completely different things and should not be related.
I have tried to understand how exactly our spending would be affected; if DK goes through, Everton will undoubtedly have to share the cost with Tesco, and if DK gets 'called in' and delayed this will also cost the club financially according to Keith Wyness, so it's a loss-loss scenario either way financially.
Everton are yet again in a situation where, after the best efforts of David Moyes and his playing staff, the club are in a stable position paired with which investment in quality playing staff and a bigger squad would arguably bridge the gap further and possibly even break the monopoly of the top four, yet they look as if they do not have the finance to do so. This is becoming an annoying trend and from my understanding would be further exacerbated by the Kirkby project being successfully implemented or even 'called in'.
The long term benefits of a new stadium are obvious, but I am quite frankly worried that the success of last season will not be sufficiently built upon this coming season with the quality purchases needed.
Furthermore, David Moyes's long term future as manager may well depend on the extent to which he and his squad is backed financially this pre-season and the delay is certainly worrying to say the least.
Dominic Fitzpatrick, Posted 25/06/2008 at 00:20:07
Comments
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
Editorial Team
2 Posted 25/06/2008 at 06:12:10
The "deal of the century" stadium that was supposed to be "effectively free" is now going to cost Everton £78m (significantly more in the final reckoning if it ever comes to fruition, I?m sure) and the Board is going to have to borrow to fund it, just as it has been borrowing against Sky revenue and from Robert Earl to fund player acquisitions.
If they have a stadium development to pay for, they?ll be borrowing on two fronts (naming rights and the sale of Goodison won?t even get them anywhere close despite what Keith Wyness wants you to believe), with one affecting the other.
Worryingly, the club appears to be at something of a crossroads. Moyes?s contract extension may depend on the promise of sufficient funds but if Desintation Kirkby goes ahead, there may not be enough of it; Phillip Green and Earl?s continued investment may depend on the stadium and they could melt away if it gets called in.
Either way, I can?t see Moyes getting the amount of money needs to strengthen the squad to the standard he wants or we really need. Obviously, I'd love to be wrong...
3 Posted 25/06/2008 at 06:35:17
Are we saying if DK falls through, we dont have any money to spend on players, however,
If it goes ahead, although we instantly add 80 million to our debts, we suddenly have money to spend on the team too ?
How does that work ?
4 Posted 25/06/2008 at 06:49:03
You answered my question before I’d asked it
I fear your concerns about the amount DM has to spend will prove to be justified too
5 Posted 25/06/2008 at 07:18:00
Fuck, wrong thread, sorry!
6 Posted 25/06/2008 at 07:43:05
7 Posted 25/06/2008 at 07:47:46
" The primary concern has to be to look after the team, and if you go back to the all-seater stadium developments of 20 years ago, you?ll see that some teams paid a heavy price for investing in their stadiums and neglecting their squads. We won?t do that."
So he?s saying that the stadium will not affect transfer spending . there are lots of contradictory articles but this is a direct quote from an Everton official
The full text of the article is on keioc.net
8 Posted 25/06/2008 at 08:13:12
9 Posted 25/06/2008 at 08:49:58
It’s always the same with us and I fully include myself in that!! I was thinking that the signings last summer of Pienaar, Baines and Jagielka were a pretty poor showing for a summer transfer window then we bag the Yak at the last minute. Despite misgivings about signing an infamously lazy git for nearly £12M it was a big signing and excitement ensued.
Forget the media talk. I know we’re all scratching around for a grain of so-called news at the moment, but christ, we should know by now that if the media were to be believed we’d have lost Moyes 4-times over, plus Mikky and AJ and Joleon and Yobo......
Let’s just hope this media talk of no money, delayed funds, blah, blah, all dependent on Kirby is a clever gambit from those upstairs at GP. And Moyes is lining up the new holy-trinity as we speak.......
Pass me some more of those happy-pills, they work! Yay!
10 Posted 25/06/2008 at 09:02:22
This strikes me as a case of all your egges in one basket yet again from EFC, poor management from a team which should be sufficiently experienced in what it is doing to forsee this type of issue.
Either way, we will see in the fullness of time, but I can understand the negativity in the posts here - fans becoming exacerbated with the ineffectual management of a club they love.
Let’s just hope that this won’t signal the departure of DM...
11 Posted 25/06/2008 at 09:15:48
2. they may be banking on future revenue
3. Most likely is Moyes on Hols the Euros are on and Moyes always plays his cards close to his chest.
12 Posted 25/06/2008 at 08:26:46
Do those who quote that figure not watch the News or read newspapers.
The combination of high commodity prices & the higher costs of raising capital, even assuming we can get it ( perhaps we??ll put it on a Tesco credit card ) mean you can already add about £15-20 million to this.
Couple that with the fact that the value of assets i.e Goodison & Bellefield are falling daily and that was even before planning permission was refused on the latter.
To proceed under the current economic conditions is potentially financial suicide.
The whole thing looks like just a smoke & mirrors gamble by Kenwright to cash in his investment & turn a personal profit at the expense of our club : Let us be used by Tesco to get their store. He had to do this as he didn?t have the capital himself. Sell Everton & cash in on his investment, with the financing of a new stadium in place, he'll make more money than selling without this in place.
That?s why there is supposedly less tranfer money if we don?t move, it's theoretically based on new investment following the sale.
Kenwright is effectively walking a ?Tight rope? here. Moyes has raised our profile & position and he got the vote to move to Kirkby at which stage all was going well i.e he could move & sell for a good price/profit.
Problem is planning permissions (Kirkby / Bellefield) & the economic slowdown are seriously threatening his plans.
It?s all in the timings & at the minuite time is rapidly running out.
Don?t get me wrong I actually quite like Bill & think he genuinely love?s Everton BUT by mixing business & pleasure I think he?ll end up hurting our club.
It?s just an opinion & obviously not having ?insider? information is just speculation but I think we?ll all see pretty soon if I?m wide of the mark.
It would of course be nice to hear from Bill or the board directly, rather than just via their ?black proaganda? & spinning to the press but at the mo? they are more elusive than Osama bin Laden!
13 Posted 25/06/2008 at 09:26:55
14 Posted 25/06/2008 at 09:35:03
I believe the reason Moyes agreed in principal to sign a new contract but didn’t actually sign was because he’s waiting for ’something’ to happen. That something is now obviously the stadium decision.
So for him to agree in principal to sign an extention suggest to me he’s been promised funds if the stadium move gets the go ahead, either by borrowing further based on projected future income at the new stadium (HA!), or more likely, investment from someone who will only invest if they see the club moving to a new ground (possibly Earl?).
15 Posted 25/06/2008 at 10:28:22
The outcome of the stadium debacle shouldn’t impend on transfer cash.
Unless of course it wasn’t seprated in the budget and it was a case more of "well if we do this then we will have this. If this costs this then that won’t happen". Which should only happen in amatuer organisations.
The only effect i can see in the transfer kitty is the loss income from the bellfield project. Which they probably didn’t make a contigency what if budget.
In that case they may have to dip into the transfer budget to save their presious stadium.
16 Posted 25/06/2008 at 10:53:45
I just can’t see ( from what we are told ) where we get enough money for either an adequate transfer budget or starting capital to proceed with the stadium, let alone both.
I get the feeling we won’t see any more money from Earl & Greene wants to invest in Spurs making the status of his existing investment/ loan unclear.
I suspect there is a new investor or more likely buyer lined up should Kirkby go ahead
BUT there are so many potential problems its difficult to see how it will come together.
Its like a jigsaw ( or more probably ’a house of cards’ ) where everything needs to go together at the right time or it’ll fall apart.
In late May I travelled down to London by car with two accountants from a major firm in the Midlands, who advise Multinationals & Government.
At one point we got on to football finance as one had done work for Championship clubs. He know’s I’m an Evertonian & we had a lenghty discussion about our current position as they understood it and let just say it was ’problematic’. Since then I think our position has weakened still further.
17 Posted 25/06/2008 at 11:27:28
18 Posted 25/06/2008 at 11:31:54
19 Posted 25/06/2008 at 11:46:52
You are hoping this is a "clever gambit from the guys upstairs at GP"???
Has history taught you nothing?
This is the last attempt BK and KW have to gain some late support for Kirkby.
Essentially they are saying "back us with this or Moyes gets nothing".
Disgraceful!
I wrote an article a couple of months back stating how i felt the club was being held back the the "guys upstairs". And how it may take Moyes to leave for a club with bigger ambitions (a nightmare scenario), for the Everton faithful to completely turn against them.
As currently they are getting away with doing nothing because Moyes contiunes to drag this club forward on his own.
How on earth does NOT commiting to £78M worth of debt (deal of the century) result in losing a substantial transfer kitty?
Bullshit - Total Bullshit and I am sick of it!
20 Posted 25/06/2008 at 11:58:01
21 Posted 25/06/2008 at 12:22:38
22 Posted 25/06/2008 at 12:27:46
Ian Ross now says
?...that if planning permission isn’t granted - or comes
too late - Everton will reconsider the redevelopment of Goodison Park?
I don?t quite no how to break this to you and other yes voters, but redevelopment of Goodison Park, would be.....A FUCKING PLAN B!!!!
But...hold on...doesn?t that mean the question should have been..
"Move to Kirkby or redevelop Goodison?"
The answer you?re looking for (as you start to develop donkey?s ears and bellow "Eeyore!") is, ironically, ?yes?
Do you want cream or custard?
23 Posted 25/06/2008 at 12:44:21
31/05/2005 = +£4.75m
31/05/2006 = +£3.41m
31/05/2007 = -£1.31m
Speculation as to the transfer kitty is a waste of time. The kitty will be based on a lot of sums and info which we have no access to. It will be complicated by numerous accounting issues.
What is clear is that, if the recent trend towards a cash negative position in the EFC audited financial statements is a continuing trend, it won’t be being funded out of EFC’s own cash.
24 Posted 25/06/2008 at 12:48:49
I’m sure if he’d really worked 24/7 for investment we could stay in the city & consoildate futher with decent transfer funds. There have apparentley been offers but the deal has not been right for him
Its the bigger cut he’ll get by moving us to a susidised Kirkby developement thats the key.
Personally I see it as the final insult to us fans to present us with the ’hobsons choice’ of move or no transfer money.
Its only a choice in terms on their self interest NOT in the interests of EFC.
Anyways all this talk of pie & cake I’m off for lunch.
25 Posted 25/06/2008 at 13:15:35
"Some media outlets say that how much David Moyes has to spend depends entirely on whether Destination Kirkby actually goes through"
That sentence says it all...read again "some media outlets". Please explain to me how these media people with their non existant sources are considered to be telling the truth? I mean the papers never embelish things or sensationalise stories do they?
I will wait and see what happens not start to panic because some journo comes out with a speculative piece on something he has no evidence on at all.
26 Posted 25/06/2008 at 13:21:29
Cant wait!
27 Posted 25/06/2008 at 13:25:06
http://youtube.com/watch?v=6NyVUpmnU4M
Then I will happily go to watch Everton in Kirkby, Sadly I dont see it happening!
28 Posted 25/06/2008 at 13:07:12
If you had the Millions to buy Everton, would you rather buy it before a deal had been made to move the club or after? I mean if you’re going to invest then how does putting your money into a deal which you pressumably do not have transparency on until you hand over the cash sound? It’s not like taking a risk and buying a car off of Ebay that youve never seen. It’s closer to buying a garage of cars, on one hand you can take it lock stock and barrel with the debt that the current owners have steadily increased whilst trying to fire fight their way in running it, or alternatively the current owners could be telling you to look past the existing stock as they’re just about to get their hands on a fucking Bat Mobile. Of course when you see what you’ve been promised as the "Bat Mobile" that every rockstar’s going to want and is going to push the garage onwards and upwards is nothing more than a Robin Reliant with a couple of blue LEDs, would you think "Fuck it, it’s only a few million and even though this stupid Bat Mobile thing’s put the garage in further debt and split not only their existing customers but also many of their potential customers" or would you look elsewhere.
What benefit would any investor get from going into a project almost blindly, based on the figures fed to them which have already changed? Why commit yourself to the burden of considerably more debt for something that you have not helped engineer? If we did get a super rich Suger Daddy do you not think that they would want to mould the project that KW has cack handedly smashed together? And so if they did change anything to DK, then wouldn’t the planners et al have to be involved again.
It doesn’t make any sense.
Tescos, Everton’s partner are not going to inject any more money into the club, they’re already helping us out enoug with funding this monstrosity. So are we likely to have local businesses, direct competition, to Tesco’s all singing all seling retail outlet ploughing in cash?
Perhaps it’ll be residential building contractors to build commuter appartments in steel and smoked glass splashing the cash for our summer signings... but hold on, we can’t get planning permisson on a fucking field, and Knowsley Council have bent over more than enough too - and that’s not even mentioning the bloody economy at present!
29 Posted 25/06/2008 at 13:35:25
30 Posted 25/06/2008 at 13:44:35
31 Posted 25/06/2008 at 14:00:25
I don't want us to go to Kirkby, especially if it ends up being anything like the promo video/other or out of town stadiums, but sadly we?re hard-up and its the only real option as far as I can tell.
I know there are other ideas, but thats all they are, ideas.
32 Posted 25/06/2008 at 14:19:39
Sadly though many of those "ideas" seem to be considerably more thought out than our supposed "Plan". Visit http://www.destinationkirkby.co.uk/news.asp?articleid=12&forced=true
the all spin pro site... the News takes you to details of a meeting 04/04/08 where the "Details of how traffic would be managed around Everton Football Club?s potential new home at Kirkby". Read that and see if it’s a well thought out plan.
Then there was supposed to be a meeting 16/04/08... but thay haven’t updated the site.
Compare this to some of the ideas submited and/or drawn up.
33 Posted 25/06/2008 at 15:14:12
34 Posted 25/06/2008 at 16:55:44
35 Posted 25/06/2008 at 16:25:50
However there are certain things one has to point out are TOTAL BOLLOCKS, if indeed they are.
You say..
"... which is basically saying that the most important thing to them (no voters) is staying in Liverpool and not Everton going forward"
Sorry but this ’it’s one or the other’ spin, is total bollocks
Fact: It is ONLY a ’this or that’ situation, if you’re prepared to believe the spin from people who have PROVED they can’t be trusted?
You also ask "How do we know when redevelopment of Goodison became an option?"
Became?
IT HAS ALWAYS BEEN AN OPTION!
I repeat - it was only ’not an option’, if you believed people who PROVED they couldn’t be trusted to tell the truth?
Do you make a habit of believing people who continually make you promises and let you down?
Me neither (even if they’re ’good Evertonians’)
You say "It maybe something that has arisen since the vote"
You know what - you’re right!
Since the vote, here’s something that has ’arisen.
The entire badly planned thing might get called in.
And If it does?
Well, the deal dies and the people PAID to have a plan B (C..E..) realise they’re going to look like the incompetent, near-sighted fuck-wits they are.
So why now the first menton of ’possibly reconsidering redeveloping Goodison Park’? (by Ross)
Simple - pure desperation.
FFS - If you say’ there’s no plan B’ (and you don’t make a plan B) and your plan A ends up fucked, your choices are......limited.
36 Posted 25/06/2008 at 17:01:36
I appreciate what you’re saying, and it of course is one of the factors for calling DK the "Deal of the century". We were alledgedly going to pay "practically nothing" and get a shiny new stadium.
What has transpired is that we are going to pay, at very very least, £78M, and more than likely rising. The talk of selling GP and Bellefield, both of which we’d supposedly receive little from as they’re mortgaged to the hilt (less than £10M for the pair!), and now residential planing permisson’s been denied seriously reduces the potential land value anyway, really only leaves naming rights, which were grossly inflated given what Arsenal have received for their stadium.
Compare that with with the hair brained scheme to redevelop Goodison (http://www.scribd.com/doc/2259978/Goodison-For-Everton-Study)
, to a 55,000 seater (already 5,000 more than revised DK), where it could be done installments, with people more qualified than myself stating that it would be possible to do without a significant reduction in attendance.. you have to ask what the hell we are playing at.
Other proposals were not given thorough examination due to the exclusivity deal. And whilst KW may have recently said that they looked at nearly FORTY plans, I wouldn’t trust him as far as he could run unaided.
37 Posted 25/06/2008 at 19:43:51
38 Posted 26/06/2008 at 03:52:04
Liverpool are building a super stadium next door and we do not have the funds to match them on our own. Imagine a scenario where potenial signings and supporters walk past the two stadiums and see the massive difference in looks and size. WE NEED A PARTNER and with the council caring fuck all about us and no major comapanies interested in mving into the area we are need to look elsewhere.
Now before you start stating me for supporting Kirby I do not support it. the last thing we should do is move out of liverpool and give the reds a golden opportunity to gloat by saying they are the only team in liverpool. Plus the designs are shocking, its an ugly cheap stadium which will do nothing to enhance the appeal of the club.
I think the answer is the Liverpool council. So far they have been shocking and provided no REAL alternatives to Kirby. We can’t we protest to them and FORCE them to come up with REAL sites and partners which we can consider. Secondly, the design of the stadium must be improved. Surely there are artchitects out there who can design a better looking stadium which can generate a great atmosphere? I know other projects include competitions for the best design and a reward to the architect?!
Basically DO NOT PROTEST AGAINST KIRBY BUT LIVERPOOL COUNCIL AND GET THEM TO OFFER A REAL ALTERNATIVE THAT THE CLUB CANNOT REFUSE.
39 Posted 26/06/2008 at 22:44:31
I would direct your anger at Kenwright, the buck well and truely stops with him.
40 Posted 27/06/2008 at 08:03:20
Secondly, just because they couldn’t talk to everton it doesn’t mean they cannot make a plan which everton could not refuse, i.e. a stadium in the city with a partner like Tesco.


1 Posted 25/06/2008 at 06:17:36
DK is a goer = small transfer kitty.
DK falls over (for whatever) = small transfer kitty.
Q.E.D.
THERE IS NO TRANSFER KITTY !!
( well nothing worth bothering about in the leap to 4th or over stakes )