How do we fund squad improvements this summer?

Very sobering reading.

Ssell some fucking shirts in America!

Just gotta vent that one every couple of months.

Are the Premier League bosses likely to consider that penalizing clubs may be cutting your nose to spite your face or will it be business as usual, virus or no.

I have a queation which I asked on another thread.

If we extend a players contract (e.g. Michael Keane) does that extend the amortization period?

If the Premier League has fulfilled it's obligation to broadcasters in making the scheduled games available to broadcast, why should clubs have to make any refunds?

What is in the contract that makes this possible?

ps: Your table needs a "profit if we sell" column.

Do your numbers include for Keane's new contract? If not, I assume that will help a little with the amortisation figures?

Additionally, I think we will sell one or two and replace them with loanees. This could help balance the books, whilst refreshing and strengthening the squad.

Has there been any indication yet of FFP being relaxed for a period?

Who’s making these decisions?
We have over payed and handed contracts out to easily to over hyped players...

Player Wages. Amor...P&LCost
Schneiderlin, £5. £6.5m. £11.5m
Stekelenburg, £1.5m. £0. £1.5m
Dowell, £0.8m. £0. £0.8m
Niasse, £2.8m. £3m. £5.8m
Garbutt, £1.4m. £0m. £1.4m
Martina, £1.8m. £0m. £1.8m
Baines £3.3m. £0m. £3.3m

Therefore there would be £26.1million less coming off the P&L account, as well as the estimated £5million coming in for transfers from Schneiderlin and Dowell.

Does this not cover the estimated £23million being added to the P&L for those 3? Or does the book value of Schneiderlin (surely he’s the only one who would have a book value) negate this?

Before the pandemic, wages to turnover was at approximately 85%. Since then, despite some players departures, with the new additions, improved contracts to existing players and the damaging combination of reduced income, I fully expect wages to exceed turnover in the coming season. This is an absolute disaster of a financial mess however its looked at.

The other issue I'm concerned about, is what kind of financial institution would be willing to lend a (3 year in a row) loss making business a massive loan to build a £500m+ stadium? Anywhere in the world it would be impossible unless it was a government bailout!

As I see things now, the club is spending money they don't have, to buy players they cant afford, to try and achieve something highly unrealistic. They are basically betting everything on achieving qualification to the champions league, anything less would see a Leeds type meltdown. It's very dark days ahead.

I have no idea how Chelsea hope to avoid further punishment. When Havertz signing is complete they will have spent north of £225m plus wages. If I remember correctly they lost £110m in 2018-19 and ok they sold Hazard for £90m but the figures still don't add up and they have just served a two window transfer ban. Presumably they are just willing to accept the consequences.

I think some us get over-exicted about Moshiri's wealth. In comparison to other Premier League club owners I doubt he's close to top half, nevermind top six. That said, Liverpool's reported owners wealth is on a par with Moshiri's. The difference is maybe the personnel in the boardrooms.

The gravity of this situation, looks precarious, and makes you wonder if there’s further twists down the line, in terms of the ownership of EFC.

If, the next few weeks, do see much needed, new players coming in, then hopefully the recovery plan can start on the pitch, and drive towards a better place for EFC.

1. Sheikh Mansour, City $20b
2. Roman Abramovich, Chelsea $11.3b
3. Stan Kroenke, Arsenal $10b
4. Srivaddhanaprabhas, Leicester $6b
5. Lewis & Levy, Tottenham $6b
6. Nassef Sawiris, Aston Villa $5.8b
7. Guo Guanchang, Wolves $5.6b
8. Glazer family, ManUtd $5b
9. Joshua Harris, Crystal Palace $4.3b
10. Mike Ashley, Newcastle $2.8b
11. Henry & Werner, Liverpool $2.7b
12. Farhad Moshiri, Everton $2.4b

Interesting that with the exception of the RS and Villa, the financial rankings roughly reflect the standings in the Premier League.

Mike, the same is observed when comparing the table with clubs' player wage bills. Quite deflating actually.

I don't know the ins and outs of what they are going to do but I suspect they have a plan. Probably involving a cuddly fella sailing his yacht around Monaco.

I still can't get my head round Sigurdsson, Pickford and Keane comes to £100 million spent, nevermind Rooney coming back on £160k a week. During that season Salah with his 30 + goals was on £60k a week less than Rooney. Premier League football clubs with nous are not run like this.

Wolves seem to be doing it right as well, although how they handle themselves when the big boys come in for Traore will be a major test.

The BMD project, to get the backing, must have some solid financial support, so I'm expecting Everton could be taking medicine next season under FFP, else there's a longer-term plan to ease the burden on Farhad.

Getting any deals done is gonna be some feat, all facts considered.

Hopefully the escape from Purgatory starts very soon.

If we do, he's just below Mansour and way above Abramovich.

Dream on in terms of him having an interest in buying Everton.

Watching his minion Moshiri as he surely does, I'd expect him to sack him given Moshiri's wanton stupidity over the years since he took hold of us.

Then again, it may just be another dastardly plot by ruthless 21st century ultra-capitalist Mavericks, sponsored in effect by Putin, to gain a foothold in the ever so welcoming-to-billionaires UK that our country has become under years of Tory "leadership".

If you didn't know better, you might just think Premier League football and the Tory UK notion of "enterprise" is thoroughly corrupt.

However, what I read about posts blaming Moshiri, I think it's really odd, to put it mildly.

Some other contexts to consider:

None of the monied clubs 'benefited' from being able to invest their monies into the team, without the FPP as a consideration, and none had to consider building a stadium from scratch, so soon into the new owner's tenure. Everton FC had to.

Chelsea rebuilt their stands, more than 10 years after Abrahimovic's ownership; Man City inherited the City of Manchester stadium; Liverpool and Man Utd rebuilt their respective stands along the way too.

The other thing comes down to what we expect owners to do. Do we expect owners to decide which player is better, how much wages to pay, which manager to hire? Yes, it's their money, but they are to be advised by the people at the club. He wanted to get "Hollywood" managers who can attract players/ He wanted to get managers who will develop players. He wanted to get a "Director of Football" infrastructure to take the club forward.

For the supposed waste of money, it's down to the people who advised him re the appointments.

Robert Elstone has never impressed most people, and Kenwright has been out of his depth (people skills aside), compared to other chairman. Denise seems to be doing a good job, as an extension of her EitC work but, beyond the shores of UK, Everton's efforts to grow the international market is quite invisible.

I can only assume the Everton board have a plan and know what they are doing.

From a simple perspective, I think we will spend astutely but big this summer and recuperate by spending very little next summer providing Carlo gets his players in now.

You make two references to Bramley-Moore Dock. But, being a non-accountant, I am left scratching my head on how this aspect of the club's finances (player transfers and wages) would intertwine with the costs of building a new stadium.

If it goes ahead, would we each year be making repayments on loans taken out to build the stadium?

If so, I assume such annual loan repayments would be rather sizeable. and only feasible if:

(a) broadcasting income remains the same or rises,
(b) we fill the stadium on a regular basis,
both of which are dependent on
(c) the team at the very least staying in the Premier League, but hopefully performing better than it has done in recent seasons.

The two loans referenced were the advances provided by Santander on the transfer instalments due from Manchester United in July 2019 and July 2020 relating to the Lukaku sale. In the year ending 2019 Moshiri injected £149.25 million to keep us solvent.

Thank you for your prompt response. I found it introduced into the reserves from Blue Sky Finance Ltd, interest- free. It seems that Paul Hewitt (on another thread) was right with his £300 million figure. The difference between Kenwright and Moshiri is that Moshiri had access to funds that Kenwright would have never had.

No wonder Messi is not turning up for training for Koeman. How Kenwright is still Chairman shows you how comprehensive the negotiated Shareholders agreement must have been between Kenwright and Moshiri at the takeover.

I reckon that Covid-19 will buy Moshiri two more years to get Everton's house in order. Ancelotti needs to pull things around. Every other Manager has failed to produce the goods, all adding to the deficit, one way or another. No wonder Ancelotti was pushed for a Top 7 finish in the latter days of the season past. The players did not appear to be up for it or, in some cases, arsed.

I think the sale of Bernard looks a quick solution. Ancelotti did not play him as a preferred choice before the break. I am sure Ancelotti would like to move Sigurdsson and Walcott on, but any takers are unlikely. Davies might find himself at Newcastle.

#35 Mike, yes we will have annual repayments of interest at least, probably interest and capital. Those costs will be met by the increase in matchday income and sponsorship. In the time between starting to draw down the funds and the stadium opening, we will probably capitalise the interest payments (ie, add them to the outstanding amount drawn down).

I see where you are coming from in relation to the Projections now. Ancelotti and Brands are really going to have to make a go of it this coming season.

The actual cost considerations and twists of how Everton have to operate in this transfer market, explains the prolonged negotiations.

At least there are now people in place that can get done what is required on the football side but it's going to take further changes to get the Commercial side in gear.

On your previous article you did a comparative analysis of the effects of Covid-19. I am right or wrong in assuming that lower gate receipts and lower commercial operations receipts would mean that the effects are corresponding less. Probably in Everton's case, this is irrelevant given the poor performances of the football side in returns. Like not getting 7th place and losing out on £9million as a result.

The figures being bandied about are mind-boggling. Hope it is not akin to digging a very large hole.

Of course there's risk with signings but we need to start taking risks or stand still, even worse go backwards.

Get those three in and maybe one more;it will have to do until January, I feel.

Best case, we cook the books like Man City and pull it off. Worse case, we go bankrupt and reform as Everton AFC in the Northern Pontins League and attempt to emulate Glasgow Rangers 2.0.

We won't go bust as we can still sell our way out of trouble if absolutely required. Where that would leave us in footballing terms though is anyone's guess.

There's not many more options if this roll of the dice isn't a winner.

Of the three players who are apparently tipped to be wearing our shirt this coming season, Doucouré for me is proven in the Premier League and will give us 100% in the middle of the park, the other two, who without doubt are Ancelotti signings we can only hope they work out in the toughest league in the world.

I have seen this before in business where each new initiative does not produce the desired turn-around in fortunes, and circumstances work against them. It's back to the drawing board and consolidate what you have.

I think that there are just a handful of players in the team that fit both criteria. The rest would have to be subsidised sales.

And why is this important to us fans? Simply because, if the club is being badly run with loose monetary controls, then it is a very slippery slope to financial meltdown, administration, points being docked, relegation, dropping down the leagues – the consequences are too horrifying to contemplate!

Paul, I don't know if you have factored in the increased wages of Ancelotti and his coaching team for Financial Year 2020-21?

My observations are as follows:

From the projected numbers for 2019-20, against the total income of £204 million, Wages + Player Amortisation makes up approximately £260 million! If you take out £52 million (profits on player trading), then that is still £208 million, which is £4 million more than revenue and clearly unsustainable.

I did a quick calculation based on Paul's numbers and if Brands were able to move on the following players (numbers in brackets indicates their Annual Cost to the P&L, in £M, again from Paul's table above):

Delph (7.76)
Ramirez (5.85)
Tosun (7.12)
Walcott (9.61)
Bolasie (8.85)
Sigurdsson (14.1)
Bernard (6.24)

That is £59.5 million that we can take off the P&L! And most of us would agree that, if Brands and Carlo can get in the 3 players rumoured, then we would not miss all these players moving out – even if it is all at once! (I would still keep players like Iwobi, Kean and Davies in the hope that with a better system and players around them, they will improve and so will their value).

Of course, we all know that it is an almost impossible task to take off all these players in one window, given that their combined book value (as on 1 July 2020) is £44.2 million. This is probably where Moshiri bites the bullet and takes a substantial loss on player sales – say sell them on for a combined £20 million instead of their book value of £44.2 million – a loss of about £24 million.

This would still be an overall improvement in the P&L because we would save £59.5 million in wages, but lose £24 million on them on the sale, still resulting in a reduction in losses by £35.5 million.

Carlo may go a step further and tell Brands to sell Pickford and Mina and get him someone like Sergio Romero and Tomori on loans. Then, our squad looks much leaner and we take our first baby steps towards financial sustainability:

GK: Romero, Lössl, Virginia
RB: Coleman, Kenny/Arias (sold/bought)
LB: Digne, Nkounkou
CB: Keane, Holgate, Branthwaite, Gibson, Tomori
MF: Gomes, Doucouré, Gbamin, Davies, Allan
ST: Richarlison, Calvert-Lewin, Kean, Gordon, Iwobi, Rodriguez, maybe 1 more.

That is the type of astute plan that is needed. But being able to bite the bullet like that is not Moshiri's style – he is more have an objective and depend on others to work towards it. To do as you say is to arrive at a clear statement to sell the players you have listed and say get it done, no bullshit.

What you say is clearly the way forward. I agree with your player assessments for your list to go and probable extension.

That won't happen in reality as selling our main asset would be highly unpopular. You never know, though, as there is a big Spanish club in need of revamping.

I've quoted Mal at post 13 here, but it's been said many times on the forum. The reason I've posted this is, every time EFC buy a player, that is what they're striving for.

However, It's not an exact science and they get it wrong sometimes. It's not an exclusive trait that Everton possess; all football clubs have the ability to buy flops.

That's right.

At the end of the financial year, most of the transactions will be logged as a profit, with any losses balanced by a reduction on amortization costs and reduced cost of the players wages, resulting in a net profit in most of Ajay's selected sells.

A new rule E55 gives clubs another 12 months to get their finances in order.