Front page article - The Harsh Reality

[Leylo]

With the stadium i

Well we 'apparently' according to this article need 1 mill a day

Well we 'apparently' according to this article need 1 mill a day

It's feasible tho if we have nothing left in the pot. say they pay contractor monthly and 10 months or so left of build must be 200 million needed to complete there's 20 mill a month I know not exactly like

 

[NathDogg]

Just shows how staggeringly bad Everton fc has been mismanaged by the current owner and his chairman, when it can no longer afford to cover it’s daily operating costs or pay for the new stadium that is needed to increase revenue.

This is (just about!) a premier league football club we are talking about here; part of a money printing scheme that is getting ridiculous money from the television companies, and they still have led us to where we are now…

Sickeningly, I don’t think we’ve sunk to the depths to which the greatest evertonian alive and the fraudulent Iranian accountant can take us yet.

 

[The binman chronicles]

No mate, they are including the payment schedule for the stadium as well. It all comes from the same source - or rather doesn't.

Our normal costs are running deep into 100-200 million range a year even if they've jettisoned a load of staff to offset this, add the stadium cost like you say 250 and we are already pushing 400 million before you add the massive interest payments.

 

[PhoenixIreland]

Is the £1 million a day figure accurate though? Can that be verified?

 

[Shibbywiggles]

One financially astute persons view of the predicament besetting Everton Football Club and this is not doom-mongering, rather a clinical and plain language assessment of the harsh reality.

Opinion: The Harsh Reality - GrandOldTeam

Having considered quietly and at length, I believe this accurately summarises Everton’s current predicament in relatively simple terms. 4. If Everton cannot find £1m cash a day then Everton would be bankrupt and would go into what is called administration. Under Premier League rules clubs that...

www.grandoldteam.com

Just for my understanding, who wrote this, where did they get their information and more importantly what is their background that qualifies them to speak so certainly on the topic?

I worked as a revenue manager for 11 years and am now in residual analysis as of five months ago so I could say I have a background in finance but I wouldn’t claim to have the first clue about this particular topic or know where to source the relevant data!

 

[Gallaeo]

Apparently that's what he is doing. It sounds like there's no immediate payment but payments depending on the outcome of the PL investigation, staying up and completion of the stadium.

That worries greatly me if true.….l Having the club in the hands of someone who can simply walk away if we relegated / can’t build the stadium in insanity. Surely he isn’t that stupid? And if he isn’t, hopefully 777 aren’t stupid enough to risk getting relegated and the massive implications for us as a going concern

 

[jazzy]

That worries greatly me if true.….l Having the club in the hands of someone who can simply walk away if we relegated / can’t build the stadium in insanity. Surely he isn’t that stupid? And if he isn’t, hopefully 777 aren’t stupid enough to risk getting relegated and the massive implications for us as a going concern

My "apparently" is based on the Daily Fail reportage.
In reality, who knows?

 

[jazzy]

Just for my understanding, who wrote this, where did they get their information and more importantly what is their background that qualifies them to speak so certainly on the topic?

I worked as a revenue manager for 11 years and am now in residual analysis as of five months ago so I could say I have a background in finance but I wouldn’t claim to have the first clue about this particular topic or know where to source the relevant data!

Isn't it signed ....." Love The Esk " ?

 

[Neiler]

Our normal costs are running deep into 100-200 million range a year even if they've jettisoned a load of staff to offset this, add the stadium cost like you say 250 and we are already pushing 400 million before you add the massive interest payments.

Exactly mate, 1 mill a day at 365 days in a year = £365 mill a year.

 

[EVERTON DE PAULO CAETANO]

I am very disappointed with the behavior of fans residing in the city of Liverpool. Our current situation is calamitous, and we who are TOFFEES and spread across the world cannot help. My criticism is that the demonstrations against Farah and Bill are very soft, weak and inefficient. Due to the seriousness of the situation, demonstrations must take place every day... Friends, let's mobilize with more force. Hugs from Brazil.

 

[Timak]

The figure I was given was £20m a month funding requirements for the next 5 years, basically £100m annual underlying loss and £100m annual stadium costs and debt interest.

With relegation income falls by another £100m.

Administration doesn't turn you into a debt free club. Our lenders have secured their borrowing against our assets. That means the stadium/s, the training ground, the TV money and parachute payments owned by other people.

You have to pay ALL football debt (fees to clubs, wages to players at 100p in the £) and we have £100m+ already committed in future wages.

Remember Derby County's situation. I worked with lots of people interested in buying them but post-administration, with every player and asset sold they still had £60m that needed paying off to players/clubs/government. It basically took a fan writing a £60m cheque to stop liquidation. Even then the club get punished for having gone into admin in the first place with spending restrictions and points deductions that are designed to punish.

Everton in an admin situation would probably be looking at a minimum of £200m worth of money someone would have to pay off the club debts, all to get their hands on the name Everton with no players, no training ground, no stadium etc. Now you could probably buy the stadium and training ground off the creditors for a bargain price, what else are they going to do with them? But best case scenario I'd imagine £400m all in to own a League One club. It won't happen. It would be liquidation and a phoenix club scenario in tier 9 or wherever.

 

[Exeter_Gently]

I am very disappointed with the behavior of fans residing in the city of Liverpool. Our current situation is calamitous, and we who are TOFFEES and spread across the world cannot help. My criticism is that the demonstrations against Farah and Bill are very soft, weak and inefficient. Due to the seriousness of the situation, demonstrations must take place every day... Friends, let's mobilize with more force. Hugs from Brazil.

@chicoazul I see you

 

[Exeter_Gently]

The figure I was given was £20m a month funding requirements for the next 5 years, basically £100m annual underlying loss and £100m annual stadium costs and debt interest.

With relegation income falls by another £100m.

Administration doesn't turn you into a debt free club. Our lenders have secured their borrowing against our assets. That means the stadium/s, the training ground, the TV money and parachute payments owned by other people.

You have to pay ALL football debt (fees to clubs, wages to players at 100p in the £) and we have £100m+ already committed in future wages.

Remember Derby County's situation. I worked with lots of people interested in buying them but post-administration, with every player and asset sold they still had £60m that needed paying off to players/clubs/government. It basically took a fan writing a £60m cheque to stop liquidation. Even then the club get punished for having gone into admin in the first place with spending restrictions and points deductions that are designed to punish.

Everton in an admin situation would probably be looking at a minimum of £200m worth of money someone would have to pay off the club debts, all to get their hands on the name Everton with no players, no training ground, no stadium etc. Now you could probably buy the stadium and training ground off the creditors for a bargain price, what else are they going to do with them? But best case scenario I'd imagine £400m all in to own a League One club. It won't happen. It would be liquidation and a phoenix club scenario in tier 9 or wherever.

Goody gum drops

 

[Neiler]

Unreal if true.

 

[degsy]

We've seen in the past clubs changing hands like Leeds for a £1 pound. For that the buyer gets a distressed asset with debts that needs to be managed and saved - Moshiri could do that - but hes looking for the highest return for himself. 777 are trying to get in before that punch in my opinion as if administration were to happen we would be infinitely more attractive to investment from others and their would be more competition as wed be worthless.

If he dropped his price now we suddenly would have a lot more interest and possibility of investment, its his hope of a return that might drive us into administration. We've seen before he is willing to chase his losses toward ruination.

I said last year that he, Moshiri, would end up selling the club for a tenner and a handshake...with Jenny Seagrove as a likely Proxi-buyer