How well are we doing?

by   |   24/05/2019  28 Comments  [Jump to last]

I came across an interesting newspaper article this week... while some of you will have read it and hopefully Paul the Esk will in due course provide his forensic analysis, I thought I'd share some of the findings with those who have not seen it and which I present without further comment. The article shows a club-by-club breakdown of the Premier League accounts for 2017-18 and I place the Everton figures alongside those of the clubs we say we should be challenging.

Everton made a loss of £13m against a turnover of £189m.
Man City: £10m profit against £500m
Liverpool: £125m profit /£455m
Chelsea: £30m profit / £448m
Spurs: £139m profit / £381m
Arsenal: £70m profit / £403m
Man Utd: £26m profit / £590m.

Everton made £43m from its commercial activities excluding tv income.
Man City: £232m
Liverpool: £154m
Chelsea: £170m
Spurs: £109m
Arsenal: £133m
Man Utd: £276m

Everton received £16m in matchday/gate income.
Man City: £57m
Liverpool: £81m
Chelsea: £74m
Spurs: £71m
Arsenal: £57m
Man Utd: £110m

Everton paid 77% of its total turnover in staff wages. (Only Crystal Palace with 78% was higher). The highest paid non-player received a salary of £927,000.
Man City: 52% / £5.4m to "key management personnel" - so no individual figure.
Liverpool: 58% / £1.3m
Chelsea: 55% / £244,000
Spurs: 39% / £3m
Arsenal: 60% / £2.7m
Man Utd: 50% / £4.1m (unclear if this is one individual or a group).

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Reader Comments (28)

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Paul Birmingham
1 Posted 25/05/2019 at 15:16:56
These facts, if true, are sobering, and my view is that Everton will lag and fade behind the rest of these quoted teams unless we get a world-class stadium, and (like Spurs) build a proven matchday cash cow.

Easier said than done; will Bramley-Moore Dock happen, and if so, when?

On face value it's a miracle we...

Paul Birmingham
3 Posted 25/05/2019 at 15:20:32
The site keeps glitching in mid flight of my sentence. Is there a server issue?
Michael Kenrick
4 Posted 25/05/2019 at 15:27:08

What is your sentence?

"On face value, it's a miracle we..."

Does the Edit facility work for you?
Kieran Kinsella
5 Posted 25/05/2019 at 15:48:05

Not sure of Paul's issue but I have noticed of late that I no longer seem to have that "edit" option after I rattle off a post and realize I made a typo.

Kevin Molloy
6 Posted 25/05/2019 at 15:48:28
How the hell do Liverpool pull in five times our income on gate receipts?
Kieran Kinsella
7 Posted 25/05/2019 at 15:53:20

I was wondering that too. Similar with Man City. I believe the "Emptihad" holds 55,000 though it often has many empty seats. So it is about 38 percent larger than Goodison Park. So, all things being equal (I realize they are not), they should bring in about £22 million to our £16 million. They actually bring in £57 million, while Liverpool have £81 million. Are the additional tens of millions purely from executive suites etc? Or is there a huge disparity in ticket prices?

I know Everton have made a point of keeping ticket prices low but having not been to the UK in a decade I have no idea how much a ticket price is to Anfield, Etihad, etc.

Dennis Stevens
8 Posted 25/05/2019 at 16:17:39
Those figures really make me question the merit of investing so much in Bramley-Moore Dock, when much the same can be achieved at Goodison Park for far less expense.
Rob Halligan
9 Posted 25/05/2019 at 16:35:25
Does anybody know exactly how the figure of £16M for gate receipts has been calculated? To me, gate receipts means the total figure paid by paying customers for each match. When you consider we have approximately 33K season ticket holders, at an average cost of season ticket at about £700, that alone equates to over £23M per season, just on season ticket sales. Away fans normally receive 2700 tickets, at a cost of £30 each, which comes to £81K per game, or just over £1.5M per season. This leaves Everton with just under 4K tickets for on the day sales, at an average cost of say, £40, which comes to £160K. Times this by 19 comes to over £3M.

So providing we sell out every home game, even with the on the day ticket sales added to season ticket sales adds up to over £26M per season. Add on the away ticket sales and it's over £27.5M.

These figures are only estimates, and I know there are concessions etc, but surely the difference cannot be over £10M.

Gerard McKean
10 Posted 25/05/2019 at 17:22:12
It's a good question, Rob #9, and I don't have a ready answer. I can't defend the figures, I simply reproduced them from an article written by David Conn who will be recognised by many TW readers as this country's foremost investigative journalist on football finances. I tend to accept that he's checked and double checked before publishing.

Rob, you will of course remember the old days when we'd be packed like sardines in Gwladys St and the tannoy would announce an attendance of not much more than 3 men and a dog. We'd all be screaming that they're dodging the taxman by deliberately underestimating the crowd. Maybe the £16m is the modern-day equivalent?

If your own quick calculations are correct, and I can only think that maybe the £16m figure is net profit after deduction of staff and material costs, it becomes even more baffling because those figures represent not only gate receipts but also all other match day income. I have been to a few of the stadiums of the other teams mentioned over the last couple of years and they are all light years ahead in terms of the quality of goods and services on offer. Who's going to roll up to Goodison a few hours before kick off (excluding hospitality) to sample the fine beers and wines and food on offer on the concourses? For me, there's no excuse not to have improved the facilities at Goodison far more than the cosmetic sticking-plaster jobs.

But actually, Rob, some of the other figures give even greater cause for concern.

Kieran Kinsella
11 Posted 25/05/2019 at 17:23:02

I saw a report too detailing our lowest season ticket price which was £400-odd. Even that figure multiplied by 30,000 virtually covers the £16 million figure. Wonder if someone has their hand in the till?

Kieran Kinsella
12 Posted 25/05/2019 at 17:34:56
On the wages piece relative to turnover, obviously the likes of Sandro have a big impact. But how about the Under-23s? Even if they're on $5,000 a week that adds up pretty quick and realistically most of them aren't going to make it. Specifically, Charsley, Garbutt, Galloway, Mathis, Sambou, all of whom are "twenty somethings" and cannot get near the first team.

I feel as if we waste a lot of money keeping around these players to make Unsy look good. Man City, for example, tend to play a lot of 18-year-olds so by comparison our "twenty somethings" are bigger and stronger so have an advantage even if they are not technically as good.

We need to cut these jokers unless we have very realistic expectations they might become late bloomers. Clear the decks for the likes of Simms and give him a couple of years in the Under-23s.

Paul Birmingham
13 Posted 25/05/2019 at 20:37:29
Sorry TWrs, early this p.m., on this trail, each type in mid flight of scribing it glitched.

In essence I was going to say its a miracle we are hanging in, if these figures are correct, but as Rob and others have confirmed the maths don’t stack up, and it’s mystifying.

In the 1970s and before and for a while after, we all knew that they’d be 48k, in GP, at least and the gate would be 39-41,445.

That’s an example but the gate tax fiddle dodge we knew went on. These figures are very concerning as it makes BMD, critical.

Let’s see what comes out the next few weeks.

Dave Abrahams
14 Posted 25/05/2019 at 21:15:32
Kieran (11), loads of young kids go to the games, season tickets at £95, plenty of pensioners (like me) who pay £299 for a season ticket (daylight robbery!!!) so these prices reduce the overall gate receipts.
David Pearl
15 Posted 25/05/2019 at 21:35:30
Like Dave, I was also going to mention that under 16s get a season ticket for £95. (While at Man Utd, my 8-year-old nephew pays £800.)

And my parents are also paying less as over-65s. They're surrounded by the same group that have been going for over 20 years in the same seats. Does the figures include revenue from boxes?

Anyway, yes, bring on BMD. Please, as long as we have a team fit to challenge and we get ourselves back where we belong.

Andy Crooks
16 Posted 25/05/2019 at 21:40:29
Gerard, I find those figures quite disturbing. Matchday revenue is what it is and, in my view, raises questions about the lack of ambition regarding the new stadium.

Commercial activities is shite and always has been, room for improvement. The wages-to-turnover ratio is essential and is one reason why we are not Sunderland. It is all linked, though.

We need to bite the bullet and take a big hit on our overpaid loanees. (It seems we got Villa to pay Bolasie his full £70k-a-week wack, which was a bonus.)

Bad calls were made, in hindsight. Walsh, Allardyce etc. But we have a huge challenge ahead. Build a stadium and a team. It can be done. It will be done.

Paul Birmingham
17 Posted 25/05/2019 at 22:24:54
Good optimism, and hopefully we can as a club genuinely say we are in the right lane, in context of tapping into sponsorship etc.

We are rightfully cautious, as a lifetime of false dawns has made us, but this time, hopefully, the Gods of fate will be kind to EFC.

BMD @ min 60k, and future proof, will happen?

Don Alexander
18 Posted 25/05/2019 at 22:35:24
Unfathomably low net income for Everton! Who'd-a-thought it given that we've recently had the "The Mozart of Money" teaching his adoring scholar?
Gerard McKean
19 Posted 26/05/2019 at 10:39:02
Kieran #12, it's a tad harsh to label players who don't make it “jokers”, but your main point is an excellent one: the whole U23 set up should be geared to producing young players with the skill and mentality to become first teamers — not to winning the league with players not able to make that transition. I'll just say: Colin Harvey, San Siro, 18 years old...

Dave #14, you're right, but don't forget the hundreds of tickets Everton gives away each match day as part of custom-and-practice contract, many of which are then sold on by the recipients for their own gain. This dodgy practice needs to stop.

Laurie Hartley
20 Posted 26/05/2019 at 11:27:09
Those numbers confirm what many have asserted for some time now – Daniel Levi is a very smart cookie (even if you don't take into account the fact that he has just built a brand spanking new stadium).
Brian Harrison
21 Posted 26/05/2019 at 11:44:11
As Dave Abrahams says, not all season-ticket holders are paying the full price. I, like Dave, get pensioner prices and my grandson, who is 9 and has had a season ticket for the last couple of years, only pays £95. I think it's great that our club reward the older and younger supporters in this way; when I walk to the game with my sons and grandson, I am delighted to see so many young people going to the game.

I remember David Conn writing a few years before Moshiri joined the club, saying that our wages % to actual turnover was not sustainable. Seems like these figures confirm the same underlying problem has not been turned round. Although I would hope that the wage bill which has to decrease dramatically will happen once they move on the many unwanted players on the books at present.

We have kept our season tickets frozen for a few seasons now, maybe that is now becoming unsustainable. Maybe the over 65s like me need to pay a bit more, but I would hope any increase for the younger supporters is kept to the minimum.

Dave Williams
22 Posted 26/05/2019 at 17:09:07
A perfect illustration of why Welbeck cannot happen with wages of £100k a week. We must get costs under control and implement Brands's stated aim of buy cheap and young to sell some on at a profit.
Jay Harris
23 Posted 26/05/2019 at 18:04:39
on the subject of matchday income didnt uncle Bill ably assisted by Earl and Green lease out our catering and bar operations a few years ago instead of managing it in house like most other clubs.

That may explain some of the shortfall but as others have said that figure looks suspiciously low.

Stan Schofield
24 Posted 27/05/2019 at 10:20:34
How well are we doing?

We're doing as well as we've been doing for some time, as a midtable club finishing in the range 45-60 points, having midtable highs and lows, and tending to lose our best players to teams who are doing better.

Another question is, is there any real sign of us progressing from this? The answer to that one is, probably, no overall, even though we see some signs of improvement in particular areas. In other words, it's difficult to see any overall sign of moving from a midtable club with midtable highs and lows.

Sam Hoare
25 Posted 27/05/2019 at 11:10:28
One of the major tasks for Marcel Brands over the next few years will be reducing the wage % of turnover. 77% is criminally high. Spurs 39% is truly remarkable and shows how to really run a football club. I can imagine Brands has been tasked with bringing the number down to around 45-50% ASAP.

Though shifting deadwood is not so easy as we know. I suspect we will be forced into loaning out a fair share once more as who out there is going to match the crazy wages of Mirallas, Bolasie, Sandro et al??? Astonishing how much damage just one or two seasons of mismanagement can do!

Matt Traynor
26 Posted 27/05/2019 at 11:15:21
Matchday income includes program / catering sales (not sure if merch on the day goes to commercial).

Spurs have a brewery in their new stadium. They estimate that beer sales alone generate £150k per match, or based on 19 league games, £2.85m.

We've always lagged behind and become overly dependent on broadcast revenue. If that dips (it's projected to, but not hugely) or God forbid we tumbled out of the top flight (which some advocate as a means of "resetting"), we'd be fucked for a generation.

Perhaps our management team can go and visit Spurs stadium brewery, if they can organise it...

Brian Harrison
27 Posted 27/05/2019 at 11:37:33
I see its being widely reported that Mike Ashley has agreed to sell Newcastle to the cousin of the Man City owner, Sheikh Mansour, for £350 Million. So another club that will have finances to challenge for a top 6 place next season.

This is the same guy who put in a bid of £2 billion to buy Liverpool.

Brian Williams
28 Posted 27/05/2019 at 11:40:02
With matchday income, geographical location has to be taken into account.

Pretty sure the "average" disposable income between a regular adult attendee at the Spurs stadium and one at L4 will be hugely different. There'll likely be a large number of football tourists at the London ground willing to throw their money away on their "soccer" day out.

That's not to say ours couldn't and shouldn't be improved considerably when the Bramley-Moore Dock stadium comes along.

John Raftery
29 Posted 28/05/2019 at 17:50:07
Season-ticket holders over 65 years old at Goodison pay £299 which equates to less than £16 per match. There are a lot of pensioners at Goodison.

By contrast ,our neighbours' cheapest season ticket for 65+ year olds is £514 which equates to over £27 per match. Many will be paying much more than that.

The over-65 pricing is just one example. All the way through the age bands, the RS charge substantially more than our club does.

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