Everton FC - Finances

[SerenityNigh]

"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.

When your short-term Accounts Payable > than your short term Accounts Receivable, and your long-term Accounts Receivable > than your long-term Accounts Payable, you take out a loan to meet your expenses.

Not sure it could be any simpler

 

[SerenityNigh]

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.

Some of what that guy posts is very interesting, but basically he's connecting the dots but is missing some important information. Taking his conjectures as fact (or even reasonable, most of the time) is simply foolish.

 

[The Esk]

It basically seems (from what I can see) to be a roll over of the current factoring agreement. They may have increased or decreased the amount, you can't tell from that. The WatchedToffee crew seem to be confused by the 16/17 reference, but if you actually read the document it refers to amount payable by Premier league in May and June 2016. Basically the Basic Award Fund is seemingly paid out at the start of the season (Rule book is here http://mobile.premierleague.com/staticFiles/85/d/0,,12306~134533,00.pdf), sections C34-35, not explicit but where its paid at the end they seem to state that). so the charge is against the Basic Award Fund for 16/17 and various payments from the 15/16 season (page 14 of the linked filing).

I've had time to read the document and you are correct - this latest charge or security will be repaid from the various moneys received in May and June 2016. This will include overseas broadcasting, title sponsorship, commercial contract and radio broadcasting moneys. In the event it is not fully repaid, they'll have recourse to the basic award of the 2016/17 season.

 

[joey_macmo]

Wouldnt the above quote from @mikewex (rolling over of the factoring agreement) depend on last years Vibrac loan being satisfied though?

 

[The Esk]

Wouldnt the above quote from @mikewex (rolling over of the factoring agreement) depend on last years Vibrac loan being satisfied though?

The broadcasting revenues received in May/June as the final payment for season 2014/15 will have satisfied the Vibrac loan even if the charge is not yet shown as satisfied at Companies House.

 

[Dithering Dougie]

Wouldnt the above quote from @mikewex (rolling over of the factoring agreement) depend on last years Vibrac loan being satisfied though?

Surely with £28m in the bank we'd satisfied that loan at the nearest opportunity?

 

[joey_macmo]

Surely with £28m in the bank we'd satisfied that loan at the nearest opportunity?

The £28m from the last accounts?

The latest loan came after that?

 

[joey_macmo]

The broadcasting revenues received in May/June as the final payment for season 2014/15 will have satisfied the Vibrac loan even if the charge is not yet shown as satisfied at Companies House.

3 months behind, really?

It's just replacing Vibrac then?

 

[The Esk]

3 months behind, really?

It's just replacing Vibrac then?

The accounts will show in about 7 weeks, but based on the last accounts and projecting cash flows, yes.

 

[Dithering Dougie]

The £28m from the last accounts?

The latest loan came after that?

Aren't you crossing over 2 financial years there?

 

[joey_macmo]

Aren't you crossing over 2 financial years there?

If you're talking about the cash from the last accounts then yes we took the latest Vibrac loan out afterwards. Sept 2014

 

[PITA]

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.

We're not the only company that does it.
BTW, has anyone got a credit card?

 

[Dithering Dougie]

If you're talking about the cash from the last accounts then yes we took the latest Vibrac loan out afterwards. Sept 2014

Says enough to me this Joey.

 

[PITA]

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.

Or just take money off mugs. Pay them 1% (they won't feel 1% after they're taxed but that's their problem) then lend it out at 7%. Easy.

 

[joey_macmo]

Says enough to me this Joey.

?