New Everton Owners: The Friedkin Group

[Efcjake]

I’m curious how people expect a club fighting relegation and selling players are supposed to be profitable.

One that's also finishing building a brand new stadium.

That's where most of the losses are.

They don't count against PSR but still get reported as a loss.

We didn't lose it, we bought a new capital asset that doesn't hit the balance sheet until after it's opened.

 

[RomanReigns]

"Wage-to-turnover figure reduced from 89% to 81%"

 

[SLAVEN BILIC]

Because this is last year's accounts.

Oh yeah

 

[Drico]

When are we going into administration, lads?

 

[Blue Willy]

Friday.

 

[allen]

We have had the stability narrative on and off for years and it’s got us no where.

We've had the "narrative" because it was something we desperately wanted and didn't have.

We now do. We've had three months of it - that's all.

One thing at a time.

 

[mccole]

Another big summer ahead with big earners leaving like DCL, Keane, Doucoure plus a few extras.

If we can increase our commercial revenue which I think will be top priority given the recent rumours of stadium sponsorship.

 

[Ring master]

It's a step in the right direction. Lets be honest, we were never going to go from making significant losses to all of a sudden making profits, that doesn't happen overnight and activities on (i.e. league position) and off (transfers) the pitch haven't been that different between 2022/23 and 2023/24.

In terms of PSR and the rolling 3 year period, we are dropping one year where we made a loss of £120m and replacing it with a loss of £53m. Obviously we don't know exactly how they are calculating the actual PSR results but things are improving.....even though it might make grim reading.

2020/21 - Loss - £120m

2021/22 - Loss - £38m
2022/23 - Loss - £89m
2023/24 - Loss - £53m

The actual PSR losses for these 2 years, before the new current one becomes known. Think your only allowed to lose "35mil a season", but we had to lose less than 38mil, so this year will be off course less than that

2021/22 - PSR loss = 3.9m
2022/23 - PSR loss = 62.7m
2023/2024 = ?

 

[SonsTeam Toffee]

generally good and no surprises.

One interesting thing (to me) in the notes, which if I understand it correctly is that as at 30th June 2024, for everyone we had under contract there were potential contract clauses that could be met that would have cost us £67m in total (if met).

Contingent Appearance Fees
As per the terms of some transfer agreements entered into there are fees contingent on future appearances of certain players. At 30 June 2024 there is £67,338,000 (2023: £78,007,000) of contingent fees which are not considered probable based on management’s best estimates.

Seems a lot, but given none of them were "probable" It could be that we just had a standard win bonus clause for Europe or a cup.

 

[pfim]

You move forward with progress year on year. We have a new owner and a new stadium, which should be a catalyst for positivity. Im not expecting miracles.

We have had the stability narrative on and off for years and it’s got us no where.

Let’s not repeat the same monotonous behaviours of the past.

Well we had the stability narrative without the actual stability.

 

[Ring master]

Nice to see people keep updated Not sure were that peson has been

 

[ganistuk]

Yeah we do that consecutively for 3(?) Years and we face points deductions again - yeah ? I dunno too much about it all, just seems confusing to me.

These are not the figures used for PSR calculations. PSR relates to the adjusted earnings before tax, with the deduction of any costs relating to:

• The depreciation of tangible fixed assets or amortisation/impairment of intangible assets.
• Women’s football expenditure.
• Youth development expenditure.
• Community development expenditure.

That calculation is done separately and submitted to the Premier League for approval - which it was - and we are within the limits for the last three financial years amalgamated. That is encouraging considering the overarching losses we continued to make, but not unexpected.

 

[Neiler]

So our accounts are getting better then I taking it

They are and they arent mate. If you look at the trend of the last two sets of accounts - we very much had to sell players to make a £89 mill loss and £53 mill loss today - thats not great. When you take out the player trading profits both years - its not a healthy run business. Essentially selling you're best players to still make the two afore mentioned losses.

That said we've had high capital calls, high debt fees and exceptional draws on our revenue given the points deduction and legal fees.

Our costs are still very high for our spending and need to come down more. The fundamentals of the business are still very poor.

That said a couple of things are about to change, the stadium coming on stream - means its likely we will see our revenue get very close £250 mill. That's a £60 mill bump - you also have to remember this isnt a once of bump - its annual - so it increases the broad base of the business going forward. Secondly with the take over our debt position has improved and been restructured, which will reduce some of the day to day costs. The other thing that has changed is our cash flow situation - as someone else said it doesn't matter if you loose money once there is someone who is prepared to write a cheuqe or borrow to cover the losses and provide cash - we have that now in the TFG. In that scenario you just have to make sure you are PSR compliant.

In these accounts the business is still being run badly - having to sell assets you'd rather not have to - to reduce your losses. Its likely we will get one more set of accounts like this - up to June this year.

The business still needs a lot of work from competent people to improve it and the TFG and new leadership team have a big job ahead of them.

 

[Drico]

Nice to see people keep updated Not sure were that peson has been

From India, you say?

Toffeeweb.

 

[Bedfordblue]

generally good and no surprises.

One interesting thing (to me) in the notes, which if I understand it correctly is that as at 30th June 2024, for everyone we had under contract there were potential contract clauses that could be met that would have cost us £67m in total (if met).

Contingent Appearance Fees
As per the terms of some transfer agreements entered into there are fees contingent on future appearances of certain players. At 30 June 2024 there is £67,338,000 (2023: £78,007,000) of contingent fees which are not considered probable based on management’s best estimates.

Seems a lot, but given none of them were "probable" It could be that we just had a standard win bonus clause for Europe or a cup.

Wonder if the contingent fees includes things like options on Doucoures contract. That would be over £6m / one tenth of the total alone