Financial Fair Play investigation

[neil999]

Covid may save us really bad sanctions as there is absolutely no precedent for such an event

 

[MikeH72]

Covid may save us really bad sanctions as there is absolutely no precedent for such an event

We’ve already played our Covid card sadly. 21/22 season fans were back in the ground, they’ll just laugh at us if we try that one again.

 

[davek]

As I said, we’ll have a clearer picture when we see the actual accounts. They can’t kick that can down the road for much longer as they have to be made public by April.

...and from sources so far it looks like the losses have fallen dramatically...as will this season's financial statement show another huge reduction in losses next year.

The more the commission allows for what's subsequently happened since 2021/22 the better.

 

[Mr Popodopolous]

Surely all the following accounts will demonstrate is the trajectory of here the club is going after 2021/22...which will be a reduction in the club's losses...just as next years accounts will show a further reduction.

I think that trajectory should be allowed to give context to how the club operated in 2021/22.

It'd be asburd if that wasn't given weight.

Maybe Everton were given limits and targets with compliance in mind. Reading had similar after failing FFP in 2021, perhaps these although trending well were not met fully hence limits breached.

 

[neil999]

We’ve already played our Covid card sadly. 21/22 season fans were back in the ground, they’ll just laugh at us if we try that one again.

It's worth a go

 

[Jokerdan]

Im probably gonna stop talking about this, cos hand on heart I havent got a clue whats going on, to be frank.

Defies logic! Seems that FFP, to me, is interpreted to suit the 'big' boys and it is the lesser teams (and I can't believe we are recognised as one of those) who actually suffer.

Let's face it, the PL may make all sorts of threats to Man City but trust me they won't want to get involved in protracted law suits against a club with bottomless funds. The PL like their money too much to want to spend millions trying to make a point against a 'superclub' so they will concentrate on those with lesser funds or desire to defend. Do we fall into the latter? It remains to be seen but unless BK comes up with the Arteta money then I am dubious.

Moshiri privately probably doesn't give one as all he now wants is to complete BMD and utilise it to sell on the Club for the optimal value even at a break even valuation although, realistically, I suspect he will still find a profitable return.

 

[gwladysnight]

Building a ground?

Stadium costs are excluded from P&S.

The losses come from the way Football accountancy works. Transfer fees are amortised over the length of a player's contract. So you end up paying for transfer fees years after you signed the player. Then we get to our biggest problem wages take up nearly all of our income. In the last published accounts, wages were equivalent to 95% of our total income. Add in things like exceptional items such as paying off managers and losses are pretty inevitable.

 

[davek]

Maybe Everton were given limits and targets with compliance in mind. Reading had similar after failing FFP in 2021, perhaps these although trending well were not met fully hence limits breached.

Yes, maybe so. But the fact the PL have referred Everton exclusively on the 2021/22 accounts suggests we've met any such target for 2022/23?

 

[Narntwinnysivven]

Sadly not.

“In accordance with Premier League Rule W.82.1, the Premier League confirms that it has today referred an alleged breach of the League’s Profitability and Sustainability Rules by Everton Football Club to a Commission under Premier League Rule W.3.4,” it said. “The assessment period for which it is alleged that the Club is in breach is the period ending Season 2021/22.”

Is this assessment period be for the rolling 3 years ending 21/22 rather than just 21/22 in isolation like everyone seems to be talking about?

 

[MikeH72]

Yes, maybe so. But the fact the PL have referred Everton exclusively on the 2021/22 accounts suggests we've met any such target for 2022/23?

2022/23 year ends 31st June, my guess is we’ll have to bring in a significant amount in player sales before then as we did last year, to bring our heads above water regarding that.

 

[Mr Popodopolous]

Yes, maybe so. But the fact the PL have referred Everton exclusively on the 2021/22 accounts suggests we've met any such target for 2022/23?

Selling Gordon probably fixes that yes.

The 3 years or 4 into 3 (2018-19, 2019-20 and 2020-21 average and 2021-22) seems to be the period in question. Margins looked tight going from 2017-18, 2018-19 and then the average of 2019-20 and 2020-21 so a bigger loss in 2021-22 with 2017-18 dropping off feels likely to cause difficulties to 2022 but not necessarily beyond provided Everton don't go down.

 

[gwladysnight]

Is this assessment period be for the rolling 3 years ending 21/22 rather than just 21/22 in isolation like everyone seems to be talking about?

Yes, you can only get referred for breaching the losses for a three-year period.

 

[Miked1e]

2022/23 year ends 31st June, my guess is we’ll have to bring in a significant amount in player sales before then as we did last year, to bring our heads above water regarding that.

31st June…. Would be typical Everton to wait til that date to sell players.

 

[Jokerdan]

2022/23 year ends 31st June, my guess is we’ll have to bring in a significant amount in player sales before then as we did last year, to bring our heads above water regarding that.

And where does that leave us...although if it means ridding ourselves of the dead weights it's not all too bad.

I trust Dyche to bring in players fit for purpose in the same way Moyes did but without investment on the playing side we will still end up adopting 'the knife to a gunfight' mentality. Laissez faire comes to mind!

 

[Tony’s Carp]

2022/23 year ends 31st June, my guess is we’ll have to bring in a significant amount in player sales before then as we did last year, to bring our heads above water regarding that.

This year the finances shouldn’t be too big a problem. The sale of Gordon and Juve completing the Kean deal will help, as will the ongoing shedding of big wages (Allan, Gylfi, Delph and Tosun last summer). We’ll likely be around break even without any further sales this financial year.