Farhad Moshiri

[roydo]

That'd be spread over the lifetime of the deal wouldn't though?

Must do I guess.

 

[devlinadl]

https://www.liverpoolecho.co.uk/spo...n-wages-transfers-income-expenditure-15351870

This article sheds a slightly different angle to our wage bill if correct. Surely if we are 11th and below the likes of Palace we can't be effected that much due to FFP. Again though I have no idea what rules may of may not be hindering us.

Those numbers are out of date. They refer to the 2016-7 season. The club recently reported the accounts for 2017-18 season, and the wage bill had shot up from £105m to £145m. Turnover had risen from £170m to £189m, mostly due to the Europa League participation, so wages were 77% of turnover. That is not economically sustainable.

 

[PhilRegan]

Those numbers are out of date. They refer to the 2016-7 season. The club recently reported the accounts for 2017-18 season, and the wage bill had shot up from £105m to £145m. Turnover had risen from £170m to £189m, mostly due to the Europa League participation, so wages were 77% of turnover. That is not economically sustainable.

So in that case are we bound by FFP ?

 

[devlinadl]

I think the current issue is probably more to do with wages restrictions; basically, a club cannot increase its wage bill by a certain percentage, based on turnover or something.

Its why Arsenal cant sign anyone this window neither. Their restriction is a Ozil shaped one.

There are different sets of wage restrictions.

The one that people are discussing around Arsenal is the Premier League's Short Term Cost Control (STCC), which restrict the amount the wage bill can rise in the absence of a corresponding rise in commercial income. This most likely applies to Everton.

In addiiton, there is Financial Fair Play (FFP), governed by UEFA. According to that a club cannot have a loss in excess of £50m over any three year period (so you could lose £50m in one year and then break even over the next two). Certain costs (infrastructure investments, you developments and women's football) are excluded. Given how much Everton spends on wages and net transfer fees compared to its turnover, this almost certainly will be a problem for Everton as well, unless it can control its costs (i.e. reduce the wage bill).

 

[devlinadl]

So in that case are we bound by FFP ?

All clubs are bound by FFP (maybe not Man City...). Do you mean will the club be constrained by FFP? I think so.

My best guess for the current season is that turnover will drop from £189m to £182m (no Europa League money - the prize money and TV pool alone was worth over £12, plus gate money etc). I think the wage bill rises from £145m to £150m (Rooney, Klaassen and Funes Mori out the door, but Zouma, Gomes, Richarlson, Bernard, Digne, Mina in). Assume operating expenses and interest payments to the banks remain the same at £35m and £6m. Amortisation of player wages was £66m last season. Given the expenditure over the summer, I think it will have risen to £70m for this season (this figure involves the most guesswork on my part). Profit on player sales will drop from £90m to approx £0 this season (a profit on Funes Mori but a loss on Klaassen). So my best guess is a loss of £79m, maybe reduced to £70m for FFP purposes. I could be wrong with my figures but I think it at least demonstrates the issue.

 

[PhilRegan]

All clubs are bound by FFP (maybe not Man City...). Do you mean will the club be constrained by FFP? I think so.

My best guess for the current season is that turnover will drop from £189m to £182m (no Europa League money - the prize money and TV pool alone was worth over £12, plus gate money etc). I think the wage bill rises from £145m to £150m (Rooney, Klaassen and Funes Mori out the door, but Zouma, Gomes, Richarlson, Bernard, Digne, Mina in). Assume operating expenses and interest payments to the banks remain the same at £35m and £6m. Amortisation of player wages was £66m last season. Given the expenditure over the summer, I think it will have risen to £70m for this season (this figure involves the most guesswork on my part). Profit on player sales will drop from £90m to approx £0 this season (a profit on Funes Mori but a loss on Klaassen). SO my best guess is a loss of £79m, maybe reduced to £70m for FFP purposes. I could be wrong with my figures but I think it at least demonstrates the issue.

Yes constrained. That sounds like a decent estimation but I suppose like you say it's all guess work as none of us know any figures at all.

 

[Market trader]

Those numbers are out of date. They refer to the 2016-7 season. The club recently reported the accounts for 2017-18 season, and the wage bill had shot up from £105m to £145m. Turnover had risen from £170m to £189m, mostly due to the Europa League participation, so wages were 77% of turnover. That is not economically sustainable.

That figure of wages at 77% of turnover is scary. Most people blame Walsh for the wages but I doubt that he did the negotiations over wages or transfer fees; that must, surely, have been by someone at board level. Someone authorised wages that they must have known were possibly excessive and, therefore, potentially risky.

 

[Brisan123]

What about clubs with a higher wage bill than our own, how does that work ?

They have a bigger income
It’s about your wage bill as a percentage of your income
I think
@Neiler

 

[Brisan123]

But we are okay for money aren't we ?

Yes but under FFP you can only spend what you earn
The owners are restricted in what they can put in and they can pay for

 

[Brisan123]

or lets get proactive, pay these mistakes off , accept bad desions were made and lets get on with improving the team. standing still at this point is suicidal for this current team without any striker.

That would show up as a loss on the books and restrict us even more

 

[Goat]

They have a bigger income
It’s about your wage bill as a percentage of your income
I think
@Neiler

We have the 5th highest wage bill in the League.

The only clubs above us are :

Arsenal, who get 100m a season from The emirates, so they are gucci
Liverpool, who have a commercial income that makes other clubs cry
City, who totally abuse FFP rules
and United, the richest club in the world

So, yeah, thats how they manage it and we cant.

We get 17m a year from our Stadium, we get like 50p a season from the commercial side and we defo arent owned by a country and we defo aint the richest club in word football.

 

[roydo]

Arsenal, who get 100m a season from The emirates, so they are gucci

And even they are knackered this window.

 

[Goat]

And even they are knackered this window.

Yep, who has made signings so far?

Chelsea? Nobody has money to waste.

 

[devlinadl]

We have the 5th highest wage bill in the League.

The only clubs above us are :

Arsenal, who get 100m a season from The emirates, so they are gucci
Liverpool, who have a commercial income that makes other clubs cry
City, who totally abuse FFP rules
and United, the richest club in the world

So, yeah, thats how they manage it and we cant.

We get 17m a year from our Stadium, we get like 50p a season from the commercial side and we defo arent owned by a country and we defo aint the richest club in word football.

You missed out Chelsea. For the 2017-18 season, their wage bill was £244m. However, their turnover was £443m, so wages were 55% of turnover.

 

[Goat]

You missed out Chelsea. For the 2017-18 season, their wage bill was £244m. However, their turnover was £443m, so wages were 55% of turnover.

GAH

I knew I forgot somebody, sorry!