Overlooked but big news

[billycopper]

But this is an 'industry' where personal investment from directors does take place. If you use an analogy it has to fit.

We're not a viable business though. There is little prospect of us getting in to the black. We're kept alive against better business judgement. What dragon would put there money in to that?

 

[pfim]

So it sounds more like my meth dealer!? ...

Emotional, not chemical. What do they put in the ice cream in Columbus?

 

[davek]

We're not a viable business though. There is little prospect of us getting in to the black. We're kept alive against better business judgement. What dragon would put there money in to that?

It's gotten to that stage because it's been starved of investment for the 12 years Billy Liar and his fellow trough snufflers have been in control.

 

[chicoazul]

While the Rodwell deal is good business it's out if necessity really and that's a big shame. We should never be a club that sells to buy. Shouldn't have got to this and needs resolving ASAP before the any remaining ambition is bled of this quite superb club.

 

[Animal Farm]

We're not a viable business though. There is little prospect of us getting in to the black. We're kept alive against better business judgement. What dragon would put there money in to that?

Kenwright, Woods and Earl have all become major shareholders in a football club, do you think they will come out badly, or do you think they will walk away with a MASSIVE profit?

Didn't Paphitis buy Millwall, make a fat profit from selling his shares, and has now invested in another football club playing in the Ryman league?

 

[Duncan Disordely]

Do I really have to spell this out to people?

Next year our income will far exceed our expenditure due to the MASSIVE increase in TV money, thus we will become a profitable business over night.

The level of profit, will be determined by how much more we choose to increase our expenditure. And if whoever is in charge decides to spend less than we receive then we will be making profit.

If the major shareholders wanted to, they literally could become (even more) of a millionaire this time next year Rodders. They are quite entitled to share their profits amongst them.

So, to make it clear, at the moment Kenwright is supposedly trying to sell a business that is making a 5million pound loss each year, whereas next year he will be selling a business in which their income exceeds their expenditure, meaning that it will have become a PROFITABLE business, and it will stay that way until somebody decides to turn our profits into additional expenditure.

The problem you've got with this increase in tv money is that every new player will want a bigger slice in wages, each new contract renewal will be for a far bigger amount, transfers will go as will agents fees. Realistically it should be used to reduce ticket prices across the board to make football accessible for all. However, the rich will just get richer, and Everton will be Everton

 

[steken1]

Do I really have to spell this out to people?

Next year our income will far exceed our expenditure due to the MASSIVE increase in TV money, thus we will become a profitable business over night.

The level of profit, will be determined by how much more we choose to increase our expenditure. And if whoever is in charge decides to spend less than we receive then we will be making profit.

If the major shareholders wanted to, they literally could become (even more) of a millionaire this time next year Rodders. They are quite entitled to share their profits amongst them.

So, to make it clear, at the moment Kenwright is supposedly trying to sell a business that is making a 5million pound loss each year, whereas next year he will be selling a business in which their income exceeds their expenditure, meaning that it will have become a PROFITABLE business, and it will stay that way until somebody decides to turn our profits into additional expenditure.

In theory you are spot on.

In reality the club had £5m of debt when bill bought it and numerous assets.

Now it has debt of around £45m and doesn't own a single asset of note despite the revenues gained just from being in the premier division of english football growing at a phenomenal rate throughout his chairmanship.

The club has not been sold as it has only been for sale for a few years at an astronomical price with several obvious barriers for any new owner to contend with.

 

[Happy Nick]

The problem you've got with this increase in tv money is that every new player will want a bigger slice in wages, each new contract renewal will be for a far bigger amount, transfers will go as will agents fees. Realistically it should be used to reduce ticket prices across the board to make football accessible for all. However, the rich will just get richer, and Everton will be Everton

Bang on. It is no longer a sport that pleases its followers, infact with all this TV money they do not even need fans at the match.

 

[pfim]

So, to make it clear, at the moment Kenwright is supposedly trying to sell a business that is making a 5million pound loss each year, whereas next year he will be selling a business in which their income exceeds their expenditure, meaning that it will have become a PROFITABLE business, and it will stay that way until somebody decides to turn our profits into additional expenditure.

If that is the case, there should be no issue in selling the club right now as opposed to a year from now. It should be easy enough to project cash flows and come up with a valuation that is fair to the current shareholders.

I don't really think that's the case, I'm just responding to your contention.

 

[billycopper]

It's gotten to that stage because it's been starved of investment for the 12 years Billy Liar and his fellow trough snufflers have been in control.

We weren't exactly in a healthy state when Johnson left. I can't say I fully understand it but we had a comparatively modest debt of £35m a year or so ago. If you sell £22m of assets, reduce costs and increase income then your debt should be nearer to £13m. Did we take a loan out from Wonga.com because our debt never seems to shift from £35m no matter what we do?! If anything it increases.

I try to persuade myself that new contracts, improved facilities, agents fees and interest are to blame but I do have my doubts.

 

[billycopper]

Do I really have to spell this out to people?

Next year our income will far exceed our expenditure due to the MASSIVE increase in TV money, thus we will become a profitable business over night.

The level of profit, will be determined by how much more we choose to increase our expenditure. And if whoever is in charge decides to spend less than we receive then we will be making profit.

If the major shareholders wanted to, they literally could become (even more) of a millionaire this time next year Rodders. They are quite entitled to share their profits amongst them.

So, to make it clear, at the moment Kenwright is supposedly trying to sell a business that is making a 5million pound loss each year, whereas next year he will be selling a business in which their income exceeds their expenditure, meaning that it will have become a PROFITABLE business, and it will stay that way until somebody decides to turn our profits into additional expenditure.

As far as I'm concerned there is a difference between being profitable and being in profit. We might end up being ahead for the year, but it won't make a big dent in our debts and unless we sell again next year we'll be back to making a loss. We don't have a profitable business model.

 

[Animal Farm]

If that is the case, there should be no issue in selling the club right now as opposed to a year from now. It should be easy enough to project cash flows and come up with a valuation that is fair to the current shareholders.

I don't really think that's the case, I'm just responding to your contention.

The new TV deal has already been struck mate. The amount we receive will depend on our final league position, but even if we finished 17th, it would still result in us receiving more revenue than our current expenditure.

The person setting the valuation is Bill Kenwright, what he thinks is a fair price, and what a potential investor considers a fair price are likely to be very different IMO.

 

[Neiler]

Four mortgages settled last week... one a year early. This was before Rodwell was sold so they haven't been paid off using Rodwell's transfer fee. They were paid using income from the Premier League.

Three are from Barclays, the other is the infamous Vibrac loan.

It's not the same argument..

What I have posted is that four mortgages have been settled.. they were registered on:

The mortgages were taken out on:

01 October 2008
05 August 2009
20 December 2010
11 August 2011

Four years worth of mortgages have been settled. No new mortgages have been taken out. I presume some of Rodwell's fee will be kept back from transfer funds so that Everton don't need another bridging loan. This will save the clubs millions this season alone.

Good spot mate and great post, very interesting. Especially the loans payed down and dates.

 

[Animal Farm]

As far as I'm concerned there is a difference between being profitable and being in profit. We might end up being ahead for the year, but it won't make a big dent in our debts and unless we sell again next year we'll be back to making a loss. We don't have a profitable business model.

Why would we need to sell a player next year, and why would not doing so result in a loss? Our revenue will exceed our income, there won't be a need to sell anyone.

Our debts are already small by premier league standards, and we have paid god knows how much to our creditors over the past 24 months. The issue has always been covering losses, losses that may have mounted itself up in the form of an ever increasing overdraft.

The good news is that we wont be making a loss once the new TV money comes into play, and it will stay that way until we spend our new found revenue and that expenditure exceeds our income.

 

[Neiler]

Be interesting if any of these mortgages relate to the building of the annexe.