I think what people need to understand is what is different from these accounts that are being released and the seasons before that account for the record loss.
Are there figures that are one offs such as managerial compensation or the expenditure of the new stadium that will be moved to a new holdings once it has its planning permission approved and won't affect our accounts afterwards.
Players wages will always be a factor but as stated before over the next 18 months we will be saving around 450,000 through expiring contracts. That's not including players who you would exspect to move on like tosun, bolasie, Pennington, Dowell, besic ect.
My point being is what is the reason for the record loss and is it going to be a sustained period of loss. If not the the we can just focus on getting out of the mess previous regimes have left us in and wright this off as a one off.
I don't see this as a issue in the long term but I do think us being in Europe is a big factor in the future financial plans of the club and if we continue to fail at that then we may be in trouble from a ffp stand point.
Its never good, and im sure the regime didnt intend or expect to have to make a loss, certainly one not as significant as this.
Sad thing is the management compensation figures haven't proven to be be a once of loss we are on to our fourth managerial package of compensation, with Silvas to come next year.
The new stadium expenditure can be written of 30 mill of our losses once PP is approved for FFP purposes, but its still money being spent by the club in the real world.
Our wage to turnover ratio is hitting the 75% mark which is ridiculous and unsustainable, if you do a cost benefit analysis of the squad it highlights everything i am saying about incompetent decisions. Do our squad deserve to earning 75% of what Everton make, or deserve to enabling a 90-100 mill loss. No way, it highlights the incompetent decisions. That isnt a moment in time once of cost, its an annual one until contracts run out and it has come due to bad decisions.
Its not getting over some horrific previous regime though is it, we were carrying 40 mill of debt before the take over, we are carrying 66milll now, ahead of accounts showing a 100 mill loss, its the bad decisions of this regime that are now starting to accumulate record debt. You would say fine if we had qualified for the CL or challenged this year, we haven't been in an arses roar of that. And just a few short weeks ago we said fine and hit reboot again - for the fourth time and go through the whole process again. The book stops at this regime.
Its not good enough, to say fine we need to do this to get better - we arent - we are getting worse. Its not good enough to say this is the result of a previous regime - its not. The club has been in quick sand since the take over and the sand is reaching our necks.
The financial position is being impacted long term, debt is rising, wage to turnover is huge, we dont look like making more income and FFP inhibit us from making a 115 mill loss over three years. This year we are posting almost 100 mill year 1 of that cycle - thats pretty straight forward maths going forward and dont have to be a genius to work out that the club without additional income is in squeaky bum mode in terms of being able to invest any more artificially from owners. We now need to player trade and that has real world consequences for the team and progressing it.
Its a mess and going to be an ongoing mess.
