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£70M in the piggy bank
Comments (27) : Firstly, the excellent commercial dealings of the Premier League has meant we’ve received a nice amount of income this season.. this estimates what we have earned:
- £800,000 a place merit pay — having finished 8th means Everton receive: £10.4M
- Minimum pay from equal share for participation in league £14.6M
- TV appearance payments: minimum £5M
- £1.2M average home gate receipts, with 19 matches that’s £22.8M
- £5M per season from sponsorship, merchandise revenue and digital activities
- European ventures and pre-season match fees £2M
- £10.1M from overseas television rights
I haven’t included receipts from shares of away games and player transfers. But let’s be kind to the Board and assume we are only up another £5M in that regard over the last couple of seasons. So shall we say £75M?
Now if we cannot bracket our two best players into unique contract deals, if not by breaking the wage structure – and I’m glad we have some sort of sanity there – then by being a bit creative with the odd million here or there, maybe as a bonus on signing, we are surely making life difficult for ourselves.
The heights and the stupidity of player values (caused only by the spending power of three or four clubs in Europe – City, Barca, Real and perhaps Inter – but which incredibly affects all European player values) has meant that the price of getting readymade replacements for Arteta and Pienaar is a good £40M, and they’re not an easy sort to find!
So let’s dig deep, be creative and offer them very lucrative personal deals because they want to stay... if we don’t, in a short career, who would blame them if they find the right deal elsewhere, if Bill doesn’t find them and their agents a few million as a signing bonus today?
I don’t know the facts but imagine if we lose them because we are squabbling over an extra £5 grand a week! Yes that sounds an irresponsible throwaway comment but when you earn £800,000 for each place you climb in the table, and we’re talking about the players that we know win you the games, it’s an absolute no-brainer – you find the money.
Rodwell will be a cracking player one day and I’m glad we’ve kept him, but surely now is the time for this Everton team. In the second half of the season, we were the form team in the whole league, so this is potentially a team capable of honours and the players who are at their peak now should be harnessed to the club come what may. (Believe me, the year that Rodwell hits his peak will be the year we see him leave, sods law as Evertonians, I’m afraid). Rodwell therefore, of the three, was the luxury signing, the necessity signings are the two we are yet to pin down.
It’s worth mentioning I’m not the agent of either player, just a fan who doesn’t want to see the Big Opportunity that is Next Season, thrown into oblivion.
This is a once-in-a-generation team... don’t break it up Mr Kenwright!
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Getiing Pienaar and Arteta to sign would be a massive boost to the fans so let's get the deals done! We've already got a more suitable second keeper and a new hungry striker who I'm sure will get goals so come on Blue Bill and Elstone — let's not have another Lescott saga to undermine our start.
As for: adding that lot up, 10.4 + 14.6 + 5 + 22.8 + 5 + 2 + 10.1 = £69.9M, that’s a whopping £70M income, more than we’ve become used to, thanks mainly to our share of solid % increases in the Premier League’s central deals, and the respectable league position gained from an incredible run of form in the second half of the season."
Actually, we grossed over £80 million last year; the club post their results. You need only look at that.
We have been upping our wage bill, which already exceeds 60% of revenues. That is enough. Until we make more money whether through a better ground or whatever else, we should not live beyond our means.
If Pienaar wants off, let him go. We must then trust in Moyes to get a replacement with the money. Replacing Pienaar or Arteta (combined transfer of £4.5 million) would not cost £40 m. I realise it is highly unlikely we'd get as good for £4-5 million, but we should not panic either.
Only players that City, Madrid et al want would command such a fee, and wages of up to £100k a week. We can't compete with that — end of! We go for players that terams below those freaks go for; and that is how it should be.
The club won't pay any tax as they show a loss on their accounts.
What about our outgoings?
Our wage bill is probably over £45m including back room staff. Then there is tax, interest on loan repayments and upkeep of stadium and training facilities (including the annual lease on Finch Farm).
I would imagine that the club is being run pretty close to the wire and the difference between finishing 8th and 5th will make a difference in terms of what we can afford to pay in total wage bills. We have just offered big pay rises to Arteta, Cahill, Rodwell and Pienaar.
Pienaar is asking for £60k a week or more, which will probably trigger clauses in Cahill's, Arteta's and maybe Heitinga's contracts giving them parity with the top earners at the club. He is asking for £40k more a week (as opposed to £25k more a week). He should accept that we are not going to up our offer and either sign or fuck off.
The club will still have to pay some tax!? Employer's tax? Council tax? They may not have to pay tax on any profits, because they have none, but there is still tax to pay!??
I could be wrong. It has been known before!
They will pay employers NI and local taxes, but no Corporation Tax on company profits.
Peanuts partnership with Baines is outstanding but if his demands are exhorbitant let him go but it looks like another saga similar to Lescott is brewing.
Mainly the 'everyone' is the players (average Prem wage to turnover is just short of the 70% mark), the banks (not sure how much, but interest on 40 or 50M soon adds up) and that leaves just about enough to run the infrastructure of the club, so we make a slight loss.
The only revenue stream that we can instantly ramp up, is that of players sold. Hence, the sell-to-buy situation we find ourselves in.
I'm sure i'm not in the minority of Evertonians when I say that I would prefer to keep the services of both Pienaar and Mikel for next season rather than lose them and get new faces in. A case of "better the devil you know than the devil you don't" Both these guys, when firing on all four, make Everton a very respectable team.
So starting next season with the same squad, all contractually tied down nicely, and with no new faces would not be such a bad thing IMO.
Mind you, if Moyes added just one signing to the squad, Ohuna from Man City, then I think we could do some serious damage next season. I think he's a very good player.
If Pienaar goes this summer, who will it be next year? Let's not pretend Moyes will be able to uncover bargain basement diamonds every year.
Thanks for nothing Bill (and messers Green and Earl).
Basically, we have £0 transfer funds without taking on more loans. But c'mon — we all knew that already!
Something is about to go very badly wrong. What is Everton's debt and how much is spent servicing it? If Fulham's debt is, as was alleged, £200 million, then where do we stand?
Watch Kenwright be knighted by Everton fans when these other clubs go down and Everton are standing strong because he sensed this would happen to football....
Just a thought!
I have no doubt that a portion of this `windfall` will go into the market but word is that ALL players are looking for fat increases to reflect it! One thing is for certain, it wont end up in Blue Bill`s pocket — so don`t start on the "Where's it all gone?" mantra, will you?
I agree with getting our best players onto improved contracts, but we can't even afford that. If our total income minus expenditure is only £26k per year, we can only afford to give one player a £500 per week pay increase! I think Stevie P wants a bit more than that.
1. DK cost about £5 million in "experts" fees etc.
2. Robert Elstone commented over 12 months ago that the debt was over £75 million.
Having said that, players values are not counted as assets, so the only relevance of that amount of debt is if your players are worthless and the amount of interest you are paying on it.
Even though I would love to keep Peanuts, I think it's about time all players got more sensible about wage demands — or do they just want to become rich benchwarmers at the "crazy" clubs?
Got to spend it to make it. And EFC has the group worth spending it on. Regarding all the rumors about our guys leaving? When they're gone, I'll believe it. Not a second before.
"Robert Elstone commented over 12 months ago that the debt was over £75 million."
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What's your source? My understanding is that we have £40 million approx of debt.
I think he was quoted in the Echo but it was around the time of the last AGM when he stated that EFC's true debt was probably over £75 million.
Now that may include money owing Green in a side letter or something or outstanding payments for players but I do remember being surprised at the time because the accounts didn't show anything like that.
In Everton's case, that's a minus figure I'm afraid.
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1 Posted 08/06/2010 at 14:19:18
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To be honest, we are in a financial noose... Every single penny of that money will likely go into financing the existing debt and paying players... I'd be surprised if there was anything left over to finance any new players.
We are robbing Peter to pay Paul. Unfortunately, selling a player or two would appear to be the financially progressive option... I just hope it isn't Mikel.