The Everton Board Thread 2014/15

[Chang Elephant]

Valuing companies on revenue multiples only really works when you see a path to increased profitability and in particular, profitability with higher margins

What I said bro

 

[Woolly Blue]

What I said bro

I don't normally read your posts mate.
Sorry about that


xxx

 

[joey_macmo]

The value of the club is definitely closer to £400mil then £200mil.

Not sure why posters are disagreeing with you.

Im putting my house up on the market soon, I invite you and @Adversus to make the first bids

 

[Chang Elephant]

I don't normally read your posts mate.
Sorry about that
xxx

You can't read full stop

 

[Woolly Blue]

You can't read full stop

You may well have a point there like, cos I missed your post completely

So if the company has £2M annual revenue and £50,000 annual net profit you'd be looking to pay £7M for that company ?

I think my post was wordier and less to the point though ? This is what happens when I start to read Matt's posts.

 

[Chang Elephant]

I think my post was wordier and less to the point though ? This is what happens when I start to read Matt's posts.

Mods are made to read @bizzaro s posts ffs. The pay must be huge.

 

[Woolly Blue]

Mods are made to read @bizzaro s posts ffs. The pay must be huge.

It's more of a punishment than anything else.
Worst mod of the week has to read Matt's posts. I'm beginning to think the points system is rigged against me somehow.

Anyway, the board.
Pretty poor aren't they ?

 

[Toffeemeister]

I don't know about ask Elstone, he should be sacked for the Kitbag deal alone. It was sold to us as being guaranteed income over 10 years. I would love to know what it will have cost us over the course of the 10 years, but it could easily end up being £20 million plus. Hindsight is great and all that but it's been a disastrous decision

The Kitbag deal is proof we have no commercial sense at all as a business.

We have another four years left on the Kitbag deal I would say losing £20 million on it is very conservative !

 

[MrGrumpy]

We need a new board or at least more people on it as well as someone who's a lot better commercially. We are basically living off the Sky money at the moment. Wages are to high and the incomings not enought. We're stuck with a stadium that is the worst in the league. We're tied in Kitbag and Chang deals for a few years. Last year you couldn't buy a junior kit till November.
At the moment we got more chance of Blatter leaving FIFA then we have of us being bought or getting rid of this board

 

[bizzaro]

Mods are made to read @bizzaro s posts ffs. The pay must be huge.

The mods love me. I'm like a breath of fresh air in this forum.

 

[Zatara]

You'd only make the initial valuation based on revenue then begin dd process but like i said there must be another way to calculate football clubs value -- although as you mention theres a lot of factors around it including being a vanity project

I actually only added to the thread because @Adversus made a reasonable calculation and received some flak for it.

Valuing companies on revenue multiples only really works when you see a path to increased profitability and in particular, profitability with higher margins. Normally in those circumstances, you're looking at companies with pretty much a fixed cost base so that % increases in revenue go more or less straight through to the bottom line.

Football clubs, with a few exceptions, don't fit that model because as revenues increase, costs tend to increase at pretty much the same rate ( players wages and transfer fees eat up a heck of a lot of any revenue increase ), so you might expect to move into decent profitability, but it'll take a long time and margins are pretty thin.

It's very hard to set an investment case for buying a football club unless some of the following apply :-

• There is an easy way of raising money from the commercial arm ( Man Utd and Liverpool fit this criteria )
• The land they own is worth a lot and money can, at least theoretically, be released from that by moving somewhere cheaper ( Chelsea and Tottenham come to mind )
• You've got a product you want to advertise globally via TV
  
• The price is cheap

Our commerical arm isn't, to put it mildly, being maximised so a possible buyer might look at that and think there's potential in that area, but Goodison Park is worth very little and, based on the fact that the club hasn't been sold, I think we can assume the price isn't particularly cheap.

Anyone who buys a football club and tries to run it as a "normal" commercial business to turn a profit is going to get a lot of grief from supporters so would have to be very thick skinned ( think Mike Ashley ). Unless you're buying a club because you've got an emotional attachment or want to show off a bit, you'd probably look at it as an option, and quickly see you can get a better return from lots of other things.

Bottom line, if I thought Everton was going to be sold for 2, 3 or 4 times it's current value any time soon, I'd slowly be buying up shares whenever possible. But, while it's nice to have a share certificate showing you own part of the club, it's not really a "proper" investment.

 

[Zatara]

I think you're meant to post your pic in the "new signings" section.

 

[Goat]

ZATATTACK

 

[zirc]

Notice that little * over £10m mate

*yes that's not a typo we really only pay these mugs 40% of what we pay hull

 

[TheFinnFan]

I love the infinite n boundless knowledge of modern day internet warriors