New Everton Stadium

toffee66 said:
As a qualified accountant with 30 years experience can I just point out the "we could have spent all that money without Moshiri" argument is financially illiterate bollocks.

Since he arrived we have spent NET £100m (taking account of Stones & Lukaku) in transfers (including Tosun) funded primarily by Moshiri injecting a further £70m (that we know of) on top of the initial £80m to clear the external debt. This can all be seen clearly from the audited financial statements and the note on post balance sheet events.

Our underlying P&L only benefits by c. £20m p.a. NET from the new TV deal as >£40m revenue increase is offset by wage increases, staff increases (significantly higher coaching & commercial staff levels than before for example), inflationary cost rises and reduced ticket revenues from better pricing. All of this is this is clear from the audited financial statements and other reported events. Even factoring in new sponsorships revenue growth is nowhere near enough to fund the transfer activity we are seeing. That is before even thinking about the money spent on improvements to Goodison, the investment in land acquisition and pre-planning activities for BMD.

Our increased expenditure is largely down to Moshiri not the new TV deal for better or worse.

His judgement may be bad on people (Koeman, Walsh) and his long-term motives may or may not be pure but the simple fact is he has put his money (or at least somebody's money, for the Usmanov conspiracy theorists!) where his mouth is. I have my personal doubts about his approach and objectives but the "fraud" shouts do not reflect reality unless he turns around and demands his money back...and there is simply no indication that is his intention.

With so much of his money now committed he needs the stadium built and the club to be more successful to exit if he so wishes 5-10 years from now with a sizeable profit. No other path sees him do anything other than lose lots of money.
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People have no time for level headed well researched posts mate.
 
toffee66 said:
As a qualified accountant with 30 years experience can I just point out the "we could have spent all that money without Moshiri" argument is financially illiterate bollocks.

Since he arrived we have spent NET £100m (taking account of Stones & Lukaku) in transfers (including Tosun) funded primarily by Moshiri injecting a further £70m (that we know of) on top of the initial £80m to clear the external debt. This can all be seen clearly from the audited financial statements and the note on post balance sheet events.

Our underlying P&L only benefits by c. £20m p.a. NET from the new TV deal as >£40m revenue increase is offset by wage increases, staff increases (significantly higher coaching & commercial staff levels than before for example), inflationary cost rises and reduced ticket revenues from better pricing. All of this is this is clear from the audited financial statements and other reported events. Even factoring in new sponsorships revenue growth is nowhere near enough to fund the transfer activity we are seeing. That is before even thinking about the money spent on improvements to Goodison, the investment in land acquisition and pre-planning activities for BMD.

Our increased expenditure is largely down to Moshiri not the new TV deal for better or worse.

His judgement may be bad on people (Koeman, Walsh) and his long-term motives may or may not be pure but the simple fact is he has put his money (or at least somebody's money, for the Usmanov conspiracy theorists!) where his mouth is. I have my personal doubts about his approach and objectives but the "fraud" shouts do not reflect reality unless he turns around and demands his money back...and there is simply no indication that is his intention.

With so much of his money now committed he needs the stadium built and the club to be more successful to exit if he so wishes 5-10 years from now with a sizeable profit. No other path sees him do anything other than lose lots of money.
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Great post.
 

Toffeelover said:
Thank you for presenting a coherent review of the financial aspect of the club and Moshiri, I have been trying to get a similar message across in many of my posts but not in so much detail. I am accountancy trained but never actually seen the club's accounts so had to draw from OP's information. Hope Davek wakes up now.
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But, but the TV money...

Putting £80m in to help our debt situation doesn't count either according to DaveK and those like him who have to be negative at any opportunity. Despite it allowing to push us on in other ways risk free without getting further in to external debt.

http://swissramble.blogspot.co.uk/2017/01/everton-pressure-drop.html

"The high interest rate on Everton’s loans has meant that their financing costs have been among the largest in the Premier League. Although nowhere near as much as the interest paid by the likes of Manchester United and Arsenal, this has certainly not helped the club’s finances. The good news is that Moshiri’s interest-free loan should save them around £5 million a season."

"This unwelcome burden is emphasised even more when reviewing the cash flow over the last eight years. In that period, Everton generated £84 million of cash, mainly from operating activities £56 million, though this was supplemented by additional loans (net) £18 million and the sale of the old training ground £9 million. Around 40% of this cash (£34 million) was required for interest payments, which was only £7 million lower than the £41 million (net) spent on players, leaving only £10 million on infrastructure investment."

So he's relieved us of external interest payments by providing £80m, he's looking to build us a new stadium which we are now further down the line than any move previously, has overseen 6 of our 7 £20m+ signings in his time here (a figure ahead of Arsenal and Spurs), has improved Goodison, supports increased player wages and has used funds to pay off 2 managers.

But according to some, this is pretty much all possible due to the TV money alone and Moshiri is a fraud.

He has made some errors of judgement since he's been here so it's not all positive where Moshiri is concerned but to make out like we're barely financially better off with him here or that he's a "fraud" is absurd.
 
EFC78 said:
But, but the TV money...

Putting £80m in to help our debt situation doesn't count either according to DaveK and those like him who have to be negative at any opportunity. Despite it allowing to push us on in other ways risk free without getting further in to external debt.

http://swissramble.blogspot.co.uk/2017/01/everton-pressure-drop.html

"The high interest rate on Everton’s loans has meant that their financing costs have been among the largest in the Premier League. Although nowhere near as much as the interest paid by the likes of Manchester United and Arsenal, this has certainly not helped the club’s finances. The good news is that Moshiri’s interest-free loan should save them around £5 million a season."

"This unwelcome burden is emphasised even more when reviewing the cash flow over the last eight years. In that period, Everton generated £84 million of cash, mainly from operating activities £56 million, though this was supplemented by additional loans (net) £18 million and the sale of the old training ground £9 million. Around 40% of this cash (£34 million) was required for interest payments, which was only £7 million lower than the £41 million (net) spent on players, leaving only £10 million on infrastructure investment."

So he's relieved us of external interest payments by providing £80m, he's looking to build us a new stadium which we are now further down the line than any move previously, has overseen 6 of our 7 £20m+ signings in his time here (a figure ahead of Arsenal and Spurs), has improved Goodison, supports increased player wages and has used funds to pay off 2 managers.

But according to some, this is pretty much all possible due to the TV money alone and Moshiri is a fraud.

He has made some errors of judgement since he's been here so it's not all positive where Moshiri is concerned but to make out like we're barely financially better off with him here or that he's a "fraud" is absurd.
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this sort of tosh is lapped up by unsuspecting supporters, to make them think that progress is being made.

meanwhile the stadium is being put back a year in the blink of an eye.. @davek
 


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