To clarify the heading, thanks to many different factors, Everton Football Club still face an existential threat to their continued existence.
(nb: I am not being a ‘doom-monger’ or ‘naysayer’ regarding the club, I am making an observation from the current situation / predicament we find ourselves in.)
Just at a time when Everton actually started to produce a winning formula of football, “It’s not old-school, or new-school, it’s the right school!”, as Sean Dyche himself has recently said and after years of under-performance and disenchantment; as per Everton (That’s Everton, that!), the ownership, Executive leadership, and the financial issues surrounding the club once again come to the fore!
By doing so, they’re dousing the fans with what is akin to a ‘reality check’, much akin to an Everton version of the ‘Ice bucket challenge’, i.e. it’s pouring ice-cold water over what should be an uplifting and enjoyable footballing period for the club, no matter how nascent.
All of the following points are causing me to have a feeling of dread (as I commented elsewhere on different threads recently):
- In Farhad Moshiri, we still have (had?) an absentee owner who clearly didn’t have a genuine grasp on what was happening at board level during his tenure as owner. Hence why he appointed himself initially as a Nonexecutive Director on the EFC Board, so he would have access to the Board meetings and minutes. Which he did not have as just merely (sic) the 94.1% shareholder. NB Again note, he did not appoint himself initially as an Executive Director, just as a Non-executive Director, which meant he did not have a vote at the Board meetings. Though he could clearly indicate the way the Board should vote to ‘please’ him. However since the passing of the Chairman, Mr Moshiri is now an Executive Director. (After listening to the Toffeeweb Podcast with Pablo from the FAB, it would seem as of 15 September 2023, Mr Moshiri has an agreement to sell his shares to 777 Partners subject to approval from the Premier League, FA and FCA. Until that time, they cannot take over the running of the club.)
- Which then leads us on to the current composition of the board since the passing of William Kenwright CBE. According to Companies House, the Company (Everton FC) currently have just three Directors (The minimum legal requirement); Mr. Colin Chong, Mr. Farhad Moshiri, and Mr. John Spellman, along with the Company Secretary who is currently Ms. Katie Charles. There is no mention of the Interim CFO James Maryniak, CEO of the Women’s team Alan McTavish, nor DOF Kevin Thelwell, being on, or associated with the Board. Therefore, one can only presume that the Board has been streamlined again since Mr. Kenwright’s death? In plain English, this current Board does absolutely nothing to give me confidence that moving forward, Everton have the necessary experience, expertise or willingness to plan for a progressive and constructive future for the club either on or off the pitch. It is exactly what Mr. Moshiri said it would be following the departure of the previous incumbents, an Interim Board. Here is a definition of ‘interim’: “1. an intervening time; interval; meantime: 2. a temporary or provisional arrangement; stop-gap; make-shift.” That does not sound very inspiring to me, and the communication from the club is as we now expect, ominously silent.
- It has been stated that the stadium has not only increased in price from a ‘fixed’ £500m cost, but to a cost of £760m during the tenure of the previous board. Though, other than delays in starting the project, they did not directly cause the stadium costs to increase. Unfortunately though these figures are set to escalate further, due to a rise in material and construction costs. However there is no figure available yet in the public domain as to what they will be? (Or at least I haven’t seen one) Any significant increase in these costs will undoubtedly cause an immediate additional strain on the financial day-to-day running of the club, whilst obviously pushing operating costs higher than the reported £20m+ per month currently being bandied about.
- As has been posted elsewhere on the site, 777 Partners LLC take-over off the club, from a purely external and uninformed position, seems to be increasingly unlikely to happen. However, even that view is being disputed now. The public domain contends the main issue with approval of the take-over is the reluctance, or indeed, refusal thus far, for 777 to provide the FCA with their (presumably) audited accounts. This apparently hasn’t dissuaded the FA from declining to give their tacit approval for the proposed takeover. Whilst the EPL seem to be hedging their bets by delaying their decision regards the ‘Fit and Proper owner’ (F&PO) (sic!) test for 777. As alluded to by Michael Kenrick elsewhere, maybe the EPL are trying to avoid getting egg on their faces by passing 777 as F&PO, only for the FCA to refuse them; which may provide the Government further ammunition to rush the Independent Regulator into being.
- The last point is one I’ve had to add since the news ‘broke’ that 777 Partners LLC loan funding of the club, to provide resource to allow the club to resource operational running costs on a ‘day-to-day’ basis, is threatened to be discontinued unless the proposed take-over is completed by January 31st. Though 777 have stated, that if their take-over is imminent, then they would continue with the loaning of funds. This news does give rise to the worry of that ‘Existential threat’ Mr. Moshiri mentioned in the January of 2023, to the continued ability of Everton FC to survive as a ‘going concern’. This means that ugly, unwanted word, Administration potentially could rear its ugly head again. Unless of course a new suitor appears from the shadows, as Keith Wyness seems to indicate that there are other players in this game, IF he is to be believed himself. If the club does unfortunately go into administration, that leads to two questions. 1. Could we avoid relegation with an additional nine point deduction? and 2. If we get relegated, would that mean the club would have to go into liquidation?
The club already has a 10-point deduction which is being appealed. This is due to the fiscal mismanagement, negligence, lack of oversight, incompetence, wilful misdirection (read into that what you will), or just plain unrealistic (unachievable?) key performance indicatrors, eg, planning to finish 6th in the league table. Take your pick, or mix or add to that list as you wish.
Fundamentally the Everton Board’s performance prior to and since Moshiri’s arrival at the Club, has been nothing short of, using a kind word, inadequate (maybe abysmal?). Could the club manage to extricate itself from the relegation if another 9-point deduction was levied on us as a result of administration?
However, the fact we could all navel gaze and kick the can of blame about will do nothing for the aspirations, future and survival of Everton Football Club. What is desperately required is a strategy for Everton to get out of its current financial woes, and provide a solid base to move forward.
In all this maelstrom of madness, there is Kevin Thelwell in circumstances where other more heralded characters have wilted or failed to navigate the almost Byzantine corridors of power, and the Machiavellian machinations of our departed Chairman and former CEO. Between them, I have had relayed first-hand experiences of how they managed to split the work force at the club into two separate factions, which caused internecine squabbles within the club, and made everyone ‘duck for cover’ in case they stood out as a ‘tall poppy’.
Yet, now with less interference, and with a ‘looser grip’ from the (possibly now disdained) ‘owner’, Thelwell appears to be able to at least keep the football operations running positively, albeit on a shoestring budget. No matter how chaffed that shoestring is!
For insight into how Kevin Thelwell has developed into the role of Sporting Director or Director of Football, here is a link to an excellent video. It is long (1 hour and 18 mins) but it is a rewarding watch. Especially towards the end when he explains some of the current issues at Everton and how he is trying to move the club forward.
VSI Sporting Directors’ Podcast: Everton! With Director of Football, Kevin Thelwell
Additionally, I feel that Sean Dyche must be commended for getting the team to gel as well has it has in such a short space of time. Mitigation is there for the early season disappointments, again down to ultimately the financial issues I.e. not being able to bring a striker into the club sooner. Yet, since the squad’s injured and/or unfit players have started to regain fitness, (and form) their introduction into the playing side has caused at least this Evertonian, to sit up and take notice. Whilst also putting some of my critiques of Dyche on the backburner. Long may that continue! Dyche has his limitations, but for now, he is to my mind exactly what the team and the club need. A charismatic presence to uplift, galvanise and drive the club forward to better things.
You can see that the manager has brought the players onboard too, and their collective efforts and will is so refreshing to see. To me, it is the first time in a long-time (Martinez’s first season maybe, or Marco Silva’s first?) that I have enjoyed (sort of) watching the team play. At least we are starting to win more, and hopefully these performances can be maintained in spite of all the off-field ‘noise’ as Sean would say.
I’m sure everyone is aware of just how much Everton need our support over the next few weeks, and probably beyond. I fear that until the current state of uncertainty is over, and matters have become resolved regards the take-over and ownership issues, all we can do is cheer on the lads in Royal Blue and hope and pray for a much brighter and healthier future for the club.
Hopefully there is finally light at the end of this tunnel, and it isn’t just a light bulb with a note saying “Turn off after use”.
UTFT and in my best Gerard Butler voice “This… is… Everton…!!”