Everton, our summer transfers and short term cost control regulations

[roydo]

One question I have is about Leicester City.
Their wage budget has to be in the bottom half of the PL...so they can only increase that by £7m + other income.
What is therefore funding their big splash out on new players?
Arguably they are hit harder by this than us, having a lower starting point for total wages paid...because its not a percentage it's just a figure, £7m.
Is this winners money for the league title, or the new tv contract, or are they relying on selling someone for an enormous profit (N'golo Kante being the obvious choice)?

Their other income will include guaranteed 6 group games in the CL.

They have exploded across Asia; = certain massive upswing in commercial income, immediately.

Not a clue about their deals and that, but the other improved deals they can now do across the board will be ruthlessly exploited. Fair play to them.

 

[roydo]

Oh, and what Esk said.

 

[JimEFC]

Their other income will include guaranteed 6 group games in the CL.

They have exploded across Asia; = certain massive upswing in commercial income, immediately.

Not a clue about their deals and that, but the other improved deals they can now do across the board will be ruthlessly exploited. Fair play to them.

Oh yeah, the huge Thai following and the CL...makes sense now, cheers Roydo! Yeah fair play to them, impeccable timing!

 

[catcherintherye]

Good question mate, The short term cost controls only apply if your wage bill in 2016/17 is higher than £67 million. Last year was £48.2 million so they have a lot of slack to use before restrictions apply.

What will happen if teams breach these rules mate? Overall I can't say it's a bad rule, its a tad annoying as we now have money but I do think it will keep control on things and try to keep a parity between teams.

 

[JimEFC]

Good question mate, The short term cost controls only apply if your wage bill in 2016/17 is higher than £67 million. Last year was £48.2 million so they have a lot of slack to use before restrictions apply.

Ok, didnt see there was a threshold. So they are laughing basically! Thanks for the reply.

 

[Neiler]

It's what we receive/spend over the whole financial year 2016/17 that's important - so as long as we generate enough non-broadcasting revenue before end of May 2017 there's no order in which it has to happen. Obviously if we are relying upon player sales rather than sponsorship to boost income then it has to be done either in this window or the Christmas window. Common sense suggests it would be this window.



Ultimately Goodison Park is owned by the top company of the group, Everton Football Club Company Limited. Currently there is a charge against the ground relating to the company's debts - however I understand that's now been paid off although there's no confirmation from Companies House yet. If you start transferring assets to falsely generate profits the PL can look at the "fair value" of transactions to determine whether or not there's anything untoward.

(ps that's not the reason he only bought 49.9%)



Shirt sponsorship, better commercial contracts, higher match day revenues are the only legitimate options (other than player sales).



That's the spirit - sadly included in broadcasting revenues though!

Your understanding is the Prudential securitization loan has been paid of mate? It's been a millstone around our necks for years, would be a huge relief.

My understanding was there was penalties for repaying early, has it just been wiped out and penalties paid.

 

[The Esk]

Your understanding is the Prudential securitization loan has been paid of mate? It's been a millstone around our necks for years, would be a huge relief.

My understanding was there was penalties for repaying early, has it just been wiped out and penalties paid.

I'm seeking confirmation but from two separate sources I have been told this. It makes sense if Moshiri is acquiring his majority interest this summer.

 

[roydo]

Oh yeah, the huge Thai following and the CL...makes sense now, cheers Roydo! Yeah fair play to them, impeccable timing!

Almost like they dug a King up or something.

 

[The Esk]

What is the reason he only bought 49.9%?

If he had bought more than 50% originally it would have triggered a change of control and potentially impacted the secured loan. That issue seems resolved now.

 

[Neiler]

I'm seeking confirmation but from two separate sources I have been told this. It makes sense if Moshiri is acquiring his majority interest this summer.

That deal has hurt us for so long, I think I'm more made up getting rid of it then signing Mata, feels like a metaphorical transition from the old to the new.

Cheers mate as always.

 

[JimEFC]

Almost like they dug a King up or something.

It is spooky isnt it?!
Girl Power is over, now it's King Power

 

[SerenityNigh]

We can massively increase our wage bill and sell no-one but then we have to find the increase in wage bill less £7 million from non-broadcasting revenues, and my own view is that the upside on that this year is limited (albeit not beyond this year), thus selling Stones as an example would solve the problem.

Probably too late in this conversation, but what's the timeline for compliance? Surely we can find some commercial deals that are heavily front loaded (for a reasonable discount) to help solve the problem.

 

[The Esk]

Probably too late in this conversation, but what's the timeline for compliance? Surely we can find some commercial deals that are heavily front loaded (for a reasonable discount) to help solve the problem.

That's possible mate but I suspect the greatest value in the sponsorship deals is in the future rather than now.

So a successful season, progress on the stadium, higher profile by end of 2016/17 would reap much higher benefits than a dash for cash now.

Will be interesting to see how they achieve it.

 

[monty]

That's possible mate but I suspect the greatest value in the sponsorship deals is in the future rather than now.

So a successful season, progress on the stadium, higher profile by end of 2016/17 would reap much higher benefits than a dash for cash now.

Will be interesting to see how they achieve it.

They are well under way now mate, every vital initial task has been taken, new manager, high profile signings and plans being drawn up for a new stadium. The icing on the cake will be a trophy and fans getting right behind the team from the off hence we must play our part. Its not out of the question for the loan to have been moved offshore with guarantees coming from a certain wealthy gentleman.

Anyone got a suggestion for the name of the stadium. I absolutely certain it will not Goodison but some business with spare cash, Coke-drome, Carslberg Park or Groucho Garden

 

[SerenityNigh]

They are well under way now mate, every vital initial task has been taken, new manager, high profile signings and plans being drawn up for a new stadium. The icing on the cake will be a trophy and fans getting right behind the team from the off hence we must play our part. Its not out of the question for the loan to have been moved offshore with guarantees coming from a certain wealthy gentleman.

Anyone got a suggestion for the name of the stadium. I absolutely certain it will not Goodison but some business with spare cash, Coke-drome, Carslberg Park or Groucho Garden

The Cakery it is