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Everton FC - Finances

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deipnosophist said:
I posted this breakdown a few days ago in the Stones thread...with news of the roll over/ draw down of fresh debt, it is timely to import it here:


Everton had 28mio of debt maturing in the May 2015 year. Assume paid off and you get the following cash flows

Bank Balance open 18mio
Cash from 2015 ops 20 mio
Debtors money received 30mio
Creditor monies paid (10 mio)
Lukaku payment (12mio)
Barry (plus odds and sods) (5mio)
Finance costs (4mio)
Debt Repayment (28 mio)
Cash from 2016 ops to date (0)
Deulofeu (4mio)
Sth American guys (5 mio)

Overall (Bank Balance now) NIL

So any body coming in post these latin american blokes was either going to have to be a loan, or funded from fresh debt
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Thats actually healthier then I would have thought!
 
D410 said:
http://www.bloomberg.com/news/artic...fueled-by-secretive-loans-beat-uefa-clampdown

Is it possible that the reporter was contacted after this article and passed on his thoughts who might be the single investor who controls VIBRAC and Mousehole who are linked in the documents published on @watchedtoffee.
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"Smaller teams than United are turning to such lenders after banks retreated from soccer following the 2007 financial crisis"

"“The vast majority of clubs just don’t have the money to pay up front,” Blake said."

"He said clubs often seek funds before the start of the season to help manage uncertainties in their cash flow, which can vary depending on the team’s performance."

Some relevant quotes from the article.
 
the esk said:
The point being if the borrowing was unnecessary and used purely for the purposes of moving taxable revenue to a non-taxed environment through interest payments for the benefit of some shareholders not all.

Decent explanation of connected parties and disclosure requirements here:

http://www.slideshare.net/ramakrishnaguptar/companies-act-2013-related-party-transactions
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I suppose that's my point Esk, there are plenty of reasons why a company can say it needs money, or even ensures it does, and it wouldn't be for the benefit of the first company's directorship, but the second.
 
They take out a bridging loan during the close season when the club has no real income,this is repaid when the tv money rolls in. We're not the only premiership club club that does this.
 

orchard said:
I suppose that's my point Esk, there are plenty of reasons why a company can say it needs money, or even ensures it does, and it wouldn't be for the benefit of the first company's directorship, but the second.
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I do not think this is the case with Everton though.
 
Yes, there are plenty of reasons why a business would need cash flow from debt, and it wouldn't need to be related to a single project or asset. Refinancing, working capital, capital expenditures, etc.

It's also a good reason to borrow from related parties or a company like JG Funding instead of a bank. They're less concerned about the use of the cash and more about the collateral behind it.

The inference of fraud by some (not even the majority) in this thread is laughable. The simple explanation is that football clubs in general have a difficult time getting financed through traditional banks because of the volatility of their cash flows but still need working capital and large, lump sums to buy assets (players) so they need to look to alternative sources of capital.
 
pfim said:
Yes, there are plenty of reasons why a business would need cash flow from debt, and it wouldn't need to be related to a single project or asset. Refinancing, working capital, capital expenditures, etc.

It's also a good reason to borrow from related parties or a company like JG Funding instead of a bank. They're less concerned about the use of the cash and more about the collateral behind it.

The inference of fraud by some (not even the majority) in this thread is laughable. The simple explanation is that football clubs in general have a difficult time getting financed through traditional banks because of the volatility of their cash flows but still need working capital and large, lump sums to buy assets (players) so they need to look to alternative sources of capital.
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I hope you're not referring to what i've written, even if what I was saying was the case with Everton, it wouldn't be fraudulent as far as i'm aware.
 
pfim said:
Yes, there are plenty of reasons why a business would need cash flow from debt, and it wouldn't need to be related to a single project or asset. Refinancing, working capital, capital expenditures, etc.

It's also a good reason to borrow from related parties or a company like JG Funding instead of a bank. They're less concerned about the use of the cash and more about the collateral behind it.

The inference of fraud by some (not even the majority) in this thread is laughable. The simple explanation is that football clubs in general have a difficult time getting financed through traditional banks because of the volatility of their cash flows but still need working capital and large, lump sums to buy assets (players) so they need to look to alternative sources of capital.
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The inference of righteousness in the boards behaviour is laughable too..so many lawnmowers such little turf...
 

Oh to be bank with access to the central bank's repo window...create loans out of thin air and charge interest on them. Money for jam.
 

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