Everton Report & Accounts – Wholly dependent on Moshiri’s financial support

Well not for all the leeches bleeding the club and Moshiri dry...

Questionable value refers to money got for nothing, with possibly more on the way. What is £100M if you got it for nothing? You don't have to worry how the club is run if ultimately you have a legit marketable saleable asset.

The Board is doing its job if Everton stay in the Premier League and are able to avoid authority-induced penalties. Even better if the whole framework that was set up to avoid sanctions and on being tested proves successful. As it appears to be.

The Premier League are more interested in money flowing into the game and it is flowing into Everton at an enormous rate. The only problem is that, on the face of it, the club has to be seen to be doing something, which in Everton's case centres on the team and associated cutbacks.

I don't agree with any of this, but this is my perspective on trying to make sense of what is going on. I will continue to support Everton and hold my noise when required.

I think the point in time l thought we're doomed was when we got Bolasie instead of Zaha and l sat there thinking why.

Moshiri has continued to make changes. Fingers crossed they work because we can do nothing else. Other than support the players when they run on the pitch.

Hopefully it's not too late, but sure this summer is when the penny drops for Moshiri and he rids the club of the incompetent board he has given the keys to?

Lock them out, change the padlocks and bring in competent people who can run a football club and a business.

He is ultimately at fault for allowing this on his watch. Change is required in the blindingly obvious area of the club. For starters anyway.

The same as usual will be the theme of future transfer windows. I know that part of the spin is money will be available for the Summer. Who are they trying to kid?

Everton will have to survive in the Premier League. They will by luck, because 'bad things do not happen to bad un's. '

Danny #5

No chance IMO. Premier League survival objective achieved. The merry-go-round will continue. The Strategic Review in its implementation is a statement of intent, fully aware of the above figures as projections and completed, plus more recent performance, since this time last year.

The level of Covid related contributions to losses (£170 million in two years) will have been agreed with the Premier League and probably accounts for the delay in publishing the accounts. That means that FFP related penalties are unlikely unless we breech the commitments that we have made to the Premier League.

The banks are obviously taking a longer-term view on the profitability and revenue generation opportunities for the club basis the construction of a new stadium.

No, I have no evidence… just a hunch.

Without dropping down the divisions, I hope we can be more Manchester City and Chelsea rather than Leeds. The former are unrecognisable and have stadia to be proud of. Despite and long and winding road to get there.

Leeds are a bit like us; I think Elland Road is still the same Elland Road I remember as much as I remember Goodison from my childhood.

Without his contributions, there wouldn't even be a case for us avoiding all that FFP could throw at us.

Avoiding relegation is crucial, and if we avoid it, then the selling of our better players will become inevitable and so perhaps will be relegation in the following season.

Howard @ 17; A 'Laundry' ? 'Clean' money is supposed to come out.
In 6yrs plenty has gone in but none has come out. All we have to show for it is funking big beach volley ball court.

Also Paul mentions that Everton have been allowed to offset £170 million for the 2 years that were affected by Covid which equates to £85 million per year. So how come a club with a similar fan base as us ie Aston Villa only claimed £56 million per year for the effect of Covid?

What these figures show that even if we manage to stay in the Premier League, our wage bill will need to be drastically cut, but even more important, we will need to sell to bring down our overall debt.

I shudder to think what will happen if we are relegated probably will lead to Lampard and his staff walking and most of the first team being sold. Whether Moshiri would continue to fund the building of a new stadium should that happen, I am not sure.

https://public.flourish.studio/visualisation/8987079/

Following the sharp decline in playing performance in recent seasons coupled with the lack of any European football the prospects for attracting substantial growth in commercial income seem remote. More likely it will reduce especially if, as seems probable, the suspension of the USM link becomes permanent.

The increase in overseas broadcasting rights and season ticket prices will make only a marginal dent in the accounts. Player trading in the summer might offer a significant mitigation of the risk of a financial implosion. Having in the main bought high to sell low our recent track record in that regard does not offer much encouragement that selling our better players while recruiting cheaper alternatives can be managed successfully. A relegation induced fire sale would compound the difficulties.

A glimmer of light in the darkness: surely the end of Kenwright's disastrous reign as Chairman must be in sight at last.

I don't think that Leeds and Everton are comparable. Leeds just lurched from crisis to crisis. Everton is a planned structure from the outset of the takeover with Moshiri at arm's length and the club allowed to run the same as before.

Moshiri has access to money and maybe even a front for this money. He got into Everton at a discount for accepting this arrangement. What's more, this arrangement suits him and his objectives, whatever they may be, or he would have pushed for internal management change.

Sanctions and FFP rules have been manageable with limited repercussions. If Everton was not in the situation it is in, with a new stadium in progress, would the authorities involved have been as easily managed?

The Authorities have to give consideration to their actions in dealing with Everton. There was always the possibility that the parties involved and their money were going to come under scrutiny right from the start.

Obviously Moshiri had the money available and is willing to provide it. I don't buy into Moshiri saying "enough is enough" or selling to club, like he bought into it. There appears to be a wide long-term plan which is ongoing.

The money will continue to be available and the stadium will be built. How the money is fed into the club will be via the route that is acceptable to the authorities and any change in ownership will be offshore, with the true owners of Everton unknown or fronted. Everton will not be quizzed on this by anyone or have an official forum where this can be done.

A successful outcome is the limited effect of sanctions, limited effect of FFP rules, and Premier League survival. Two of these objectives have been achieved. I expect the third to be also.

There is nothing pretty about any of this nor will there be. Everton will head into next season not as the School of Science, the Dogs of War, the People's Club, plucky little Everton, but as the great survivors and hopefully they might get something right on the pitch, as Frank gains experience on a steep learning curve.

Moshiri & Co are still quids-in on their discounted Everton takeover. Usmanov always available 'to help' his mate Moshiri, is going to be awash with cash that he can't spend because of sanctions. No one will ever know. Anyway, Moshiri can always sell his £45million house in Highgate, which he purchased offshore from you know who, to add to his Liver Building money.

Danny, I would say more like Chelsea and Man City than Leeds.

I guess I am comparing and focussing on two big clubs whose stadiums haven't changed since I was a kid in the 80s. Everton are still at pretty much the same Goodison Park I had a season ticket at when I was 12 years old. Elland Road is still the same ground it was then too. Living off the past, as much as we love it.

As opposed to those who have either relocated (Man City & Arsenal) or those who have rebuilt (Man Utd, Chelsea, Liverpool, Aston Villa, Newcastle Utd). Tottenham are an oddity having rebuilt but kind of relocated in terms of rotating the stadium 90 degrees, but it was a re-build / new ground rather than a renovation.

The future is our new stadium at Bramley-Moore Dock. That has to be our vision now. What happens in-between is anyone's guess. But let's preserve our top-flight status. Starting with 3 points on Sunday. I'll be there.

But all will be forgotten if we stay in the Premier League and get the new stadium. If we get relegated and get the new stadium then, over time, it may be forgotten of course but everything swings on one thing – Do not get relegated!

To spend so much money on players that could not be resold for any money, let alone more money, is a complete disgrace in my opinion. Tosun, Walcott, Bolasie to name just 3, all at a cost over £20M transfer fees alone – and for what!!!

Any sale now would be at a huge loss to him personally as he would realistically get less than half what he's put in and that's being optimistic.

Any sale must be linked to the new stadium coming to fruition in 4/5 years and with Everton in the Premier League? He must also have his fingers in some pies re the development of the area surrounding Bramley-Moore Dock too?

In the meantime, all parties are praying that we survive this season but we then go into the next few years with a belt-tightening exercise to reduce costs by selling players and buying cheaper, lower wages replacements given that revenues aren't going to go up in any meaningful way other than via any new TV deals that may be struck by the Premier League.

‘Work on the £500m stadium is under way and is set to be concluded in 2024, although it has emerged that it is unlikely to be completed in time for the opening weekend of the 2024/25 season. That would leave Everton with a decision on whether to leave Goodison Park mid-campaign or extend their stay at their existing home.’

You can read on Forbes who do a real time net worth on billionaires.

On Moshiri, his real time net worth when he first became owner in 2016 it was £1.8 billion, they list his real time net worth on 30 March 2022 at £2.8 billion so it seems this accountant is not loosing very much.

These reporters are basically saying that we are already 2-3 months behind which is patently untrue. I believe they have an agenda and are simply jumping on the negativity currently surrounding the club.

It has also been widely reported that Everton have been working very closely with the Premier League over our position regarding our FFP position, and many believe that Everton will be spared any points deductions or fines because they have been operating within the premier league guidelines.

Now that's all well and good and it seems the only thing that prevented Everton being fined or docked points is the £170 million that we have been allowed to offset because of the Covid restrictions over the past 2 years. This works out at £85 million per season, whereas a club of a similar stature Aston Villa only claimed £56 million per season to offset their Covid restrictions.

Now forgive me but if I am a club also battling with Everton against relegation, I would seriously question why Everton have been allowed to offset so much compared to similar clubs. And again as a director of a club fighting relegation I would want to challenge the amount Everton have been allowed to offset against Covid. And if they were only allowed the same as say Villa then they would definitely be transgressing FFP rules as it stands and would therefore incur a fine or points deduction.

I think evolution is the word. That Everton will evolve with the Stadium to a different level, as you suggest. . The Leeds and Everton ground are similar. My Friend a Leeds supporter thought Leeds would have been a better buy than Newcastle for a billionaire, who wants to spend money. Though has mixed feelings given the Everton experience. Has been let down by the Board in the past. Something she gets very up tight about.

She travelled to home and away matches leaving her husband at home. For years they had no children and then by IVF a son was born. All his clothes bought from the Leeds shop. As soon as he was able he travelled to matches with her. The husband still left at home. She stays with Leeds friends and their families, since she could not afford it or manage otherwise, especially when her son was very young.

Good luck this Sunday. Will have to get back to Goodison myself. .

I'm not well up on football finances at all but how disastrous would relegation be for Everton? Would we get parachute payments to soften the blow or would these nowhere near cover the loss in TV revenue? Would we survive relegation or could it threaten the club's existence?

It's hard to be positive on any front at the moment. I put us as one of the favourites to go down based on form. There's massive pressure on two away games against fellow strugglers and I see it far more likely we get nothing from those two matches than the two wins we need.

The other teams around us seem to face each other and so at least one team in those games will be picking up points. We've already lost to the teams around us.

I really don't see us escaping this time. I've studied the possible points scenarios and, on form, I think the games in hand won't be enough. Hope to God I'm wrong.

If relegation happens I think we'd be selling what few prized assets we have, such as Calvert-Lewin, Pickford and Richarlison (probably at a much reduced rate) and trying to get back up with a mixture of youngsters and seasoned pros. We'll probably end up longing for the days when we were only finishing around 8th.

Totally depressing.

We are in an almighty mess and whoever is responsible for such mismanagement should hang their heads in shame.

As you ask “Why does he persist with this appalling management team?” Only Moshiri can answer this fundamental question. It's got me stumped.

Shit times for all connected apart from the very well paid players, many of which don't even play. It's pathetic.

'Moshiri needs to learn the lesson... he must be very disappointed with the performance of the Board' etc.

Moshiri is the bagman to a gangster. Surely that penny has dropped by now? Trying to make sense of Everton's accounts would be like adding a scene to Goodfellas where Paulie becomes joint owner of the restaurant, and they call in the IRS who tries to make sense of the ins and outs: 'Mr Clemenza, your receipts for the last 6 months, where are they?'

Unless a bolt of lightning comes, Everton are going to experience the reckoning which has been on the cards since Bill's 24/7 search for the right owners ended in Moscow...

He took the City's most precious asset and sold it to gangsters rather than proper owners because no doubt they were the only ones prepared to offer him what he thought it was worth.Well, he will have to live with himself over that.

If you were an independent observer looking at Everton, what would you be thinking is likely to happen now? Relegation? Yes, absolutely. But then what?

I think we will be lucky to remain in business, sadly. Our debts are so enormous, we have unscrupulous owners who at some point are just going to want their money back and sod the rest. But that terrible scenario, is not the end. Look at Rangers. It's just a long haul. But I think we should be prepared for it.

How did Everton arrive at the Covid attributed “losses” of £170 million potentially as high as £220 million?

Important to recognise that the losses are not real, well at least not all of them – they’re a reflection of where the club was at June 2021 as against where it thought it should be.

Firstly the “real” losses:

The accounts show Lost Revenue and Additional costs related to Covid as £67.3 million for 2020 and £14.8 million for 2021.

These are crystalised losses, i.e. they occurred, are readily identifiable and (as far as accounts can be) the truth.

Total: £82.1 million.

Then we have the write down of player values (the club will argue directly due to Covid)

£26.3 million in 2020 and £15.3 million in 2021 – total £41.6 million

Onerous contracts (again the club will argue directly due to Covid)

£4.4 million in 2020 and £7.2 million in 2021 – total £11.6 million

Un-crystalised losses – the difference between where the club was and thought it should be.

What constitutes an un-crystalised loss?

The effect of player trading profits. What are those effects? Lack of profit through lack of trading, lack of profit through supressed prices (although that argument can be countered by making purchases cheaper).  This figure is a real finger in the air……..

As a result of some players not being sold (the club will argue because of Covid related market conditions), Everton incur extra costs – wages and amortisation, as well as the absence of expected profit.

For 2020/21 players that might have been sold but were not include Bolaise, Tosun, Kenny and Keane. Ramirez and Schneiderlin went very cheaply.

Amortisation costs for those not sold = £19 million.

Wage costs for those not sold (but lent out – say attribute 50% of wages) £8 million

Those figures add up to £162.3 million. Add in what the club would say is a reasonable loss of player trading profits and you get to the £170 million figure quite easily. Throw in some other transfers out that didn’t happen and you can get to £220 million.

Essentially a mix of fact and Football Manager (fantasy) but swallowed by the PL – there may also be some double accounting in there but without more data impossible to tell

The number of tax loopholes for rich folk knows no bounds and there will be some method in Moshiri's apparent madness, whether that serves Everton Fooball Club well, is debateable. Unfortunately the people he employs to run the club on a daily basis, seem ill-suited to high-finance and probably woudln't be able to spot what is good and what is bad about the current finances, or how to go about fixing them if indeed they need fixing.

The only important thing for Everton and its supporters and indeed the owner and board is the results that the club achieves in the next few crucial months, if those results are not good enough, the current issues with the accounts will seem minute in scale.

Whatever occurs in the next few months on the pitch, there will be plenty of fall-out from the accounts in the months following, which may result in the club having to sell players at knock-down prices or other developements that may impact Everton's abiltiy to compete on the pitch next season and beyond.

I sill beilieve that the only way out of this mess is for Moshiri to sell to new owners and start afresh, but nobody can force him to do that and he is just as likely to carry on until at least 2024/25 when the stadium may be complete and opened. Who knows he might have a cunning plan up his sleeve? Although that doesn't seem likely either.

I do hope that the next owners of Everton Football Club, if or when they arrive, aren't optimistic gamblers like our current and previous owners, we need pragmatic and realistic people who can set achievable targets and religiously stick to a budget.

Strewth, Season Ticket holders won't be pleased.

I just can't see how anyone would be interested in buying Everton, unless for sinister motives. With our wages, crap ground, relegation prospects. Of course, everything is for sale at the right price, but my concern is that only an asset stripper would take on Everton, at a rock bottom price.

The nightmare but all too realistic prospect is that we have a firesale in the summer of all good players, Moshiri gets a lot of his money back, the club is left with all these players on contracts, and is then sold for bugger all to asset strippers who sell the ground and put us into administration.

The alternative of course is that Moshiri despite his hundreds of millions in losses, presses ahead and builds us a stadium for another half billion even after we've been relegated.

Who would want to buy Everton FC. The premier league is a cash cow and you would be surprised who would be willing to buy. Moshiri will not sell and as the major shareholder you would have to buy over 50% of his shares to become the owner, plus his real time net worth has increased since he bought Everton.

Instead of giving that gobshite spitter on people ammunition to put the boot in when a club is down, show as a supporter you are fully behind a club that is struggling. Stop writing things that are only guesswork to make a point. There is always plenty of people who will back you up when you are doing well, your true supporters will back you up when you are in trouble. And looking at the home and away games we have thousands to back us up.

The only time I will considered we are relegated is after the 37 games and we are 4pts behind with 1 game left.

I guess its semantics but you refer to this as a "supporters" page. I always think of it as a fan page.

Supporter: a person who approves of and encourages someone or something

fan(atic): a person filled with excessive and single-minded zeal

I am the latter and zeal doesn't necessarily correlate with approving or encouraging failures. It is more along the lines of demanding outcomes.

We are all entitled to praise, criticise and voice opinion on the one thing that unites us and means so much.

On Sunday, I will be amongst our unrivalled travelling support at the London Stadium willing us on to 3 crucial points.

Joined by the Everton community of supporters and fans who will no doubt be up at some ungodly hour in their own time zone to follow what we all believe in.

Support, follow, believe. Sorry, I always get like this as we approach match day!!

Really great to have someone post who understands the situation as well as you do.

I mentioned in my post earlier that it's hard to see how Everton reached their Covid losses that were used to offset the real losses. Even someone as bright as you, Paul, is finding our predicted Covid losses a bit of football fantasy.

I would think these figures have as much reality as an unsuccessful fisherman trying to convince everybody he really did have the biggest fish ever caught on the line but just couldn't land it.

Because these figures are a stretch of anybody's imagination, I will be surprised if one of the other relegation strugglers doesn't launch an appeal over our Walter Mitty Covid losses.

There has been a lot of talk but very little application by clubs to have supporters on the board. I am sure I and many more on T/W would put your name forward as an ideal fan representative.

Vote Paul the Esk.

I would say vote Danny but fear I would be another Kenwright!!

It depends on which dictionary you read.

Fan(atic): A person who is moved by a frenzy of enthusiasm or zeal. That makes you, by your admission, (Fan)atical.

Fan(atical): Given to or actuated by extravagant or intemperate zeal, unreasonably enthusiastic

And how can you demand something you have no control of?

I do admit we are not really supporters as per a dictionary – we are Fans.

Fan: An enthusiastic devotee of a sport.

Either as part of that initiative, or not, they are also committed to having some form of fan representation at board meetings. But these things obviously take time.

My son would be more suitable. He's more sensible even though he's every inch and Evertonian as me.

He comes home from foreign and dangerous climes in the the next few weeks. I'm proud of what he has done.

My reward is going to be and try to get tickets for the derby. He'll love me forever or never forgive me!!

Considering that Everton have spent almost nothing of note on players, one wonders what have they been spending it on???

Is it the new stadium that's draining the coffers or something else?

This news on top of all the other woes on the field has come at a very bad time and could be an omen for what is to come. I hope not.

Or is that something else that sneaked passed the Administration?

Don't matter what the truth is.

The only truth is... We are a shit show.

Poor recruitment lies at the heart of our current difficulties. The root cause of that was the lack of control at board level. Our decline will continue until we sort that out.

We are a shit show on and off the pitch, mate.

It doesn't take a blind man on a galloping horse to point out the mismanagement of the club at boardroom level which has had a knock-on effect with the playing side of things.

I'm emotionally hollow with the whole circus that is Everton.

Where have you heard any credible information regarding Moshiri wanting to sell up? Let alone anything about relegation clauses.

But hey, he wouldn't be looking to buy a football club, didn't he just sell one? Surely not just for potential profit or financial angling, such guys are "Football men" aren't they?

Real football men would never have such transient allegiance, to swap from a northeast club to one on Merseyside. He wore the geordie shirt in the crowd.

Must be a baseless rumour. If anyone ever bids, it will surely be someone that loves Everton.

He said these things take time and that’s why the interested party were wanting a relegation clause (I presume to lower the price) but it might also just be Chinese whispers, although it’s definitely not Chinese buyers, if true!

The problem is that all possible, serious billionaires/state funds are likely to be morally appalling. If not, then Hallelujah.

I still favour the stripped-back, authentic model so that we don't have to hold our noses.

If we happen to get somebody to buy Everton who will prevent us holding our noses, it probably means that the last 25 years will be repeated for the next 25 years – what's not to like?

Has a consortium or individual been named by your informant?

Off it - well I've never seen financial numbers like these before...

You never know, that recipe might bring success in any event. History suggests that what counts is toughness of mind.

The stakes are much greater than the balance of Farhad Moshiri's bank account. The very being of the club is at stake. We have deteriorated so sharply in recent years under Moshiri's ownership and the direction of the Chair, board and executive.

There's no point in being in denial any longer. The very existence of the club is at risk unless significant changes are made to the personnel, the governance and the control of the club. A continuation of existing practices and ill-discipline may prove fatal to the patient, at best will leave the patient in a hugely sub-optimal position whilst it's peers, on the back of more relaxed financial regulation, new capital inflows, far superior leadership and greater ambition stretch their competitive advantages beyond breaking point, leaving us adrift, a former great club with no means of returning to its former glories.

A deeper delve into Everton’s 2020-21 accounts, new £100 million shareholder loan plus the Covid impact

There are definitely brokers out there, but I personally think there are much better options than Everton because, if we are sold, the buyers will then have to find another £600 million just to complete the ground.

But maybe once the ground is complete, Everton would be a much bigger proposition for the future. But once again, who knows?

To say it's sobering reading is an understatement, comparable with Prime Minister Neville Chamberlain returning from a meeting with Adolf Hitler in 1938 waving a piece of bog-roll round his head that promised, he said, "Peace in our time".

As Evertonians, we just have to now, at last, find a way of massively changing the way Moshiri, Kenwright and the Board operate.

They are rapidly killing our club, demonstrably if you read Paul the Esk's analyses, and, given the fabulous wealth of Moshiri and his "chosen one" chairman, they're both easily able to sue Paul for defamation if what he says has no credibility.

And yet they don't, ever! He has their number, unarguably!

They just both enjoy sucking up whatever cash they can from a devoted fanbase and the extraordinary world of TV contracts (and wherever else Moshiri leeches from) whilst most of us lot just rant on, week after week, about the ineptness of a centre-back, midfielder, striker etc etc.

We're like complaining about a zit on a rampant tumour, and those in charge revel in it.