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The Everton Board Thread 2015/16 [ Not takeover related ]

Is it time for change?

  • I'm happy with the way thing are. Kenwright and the Board should stay.

    Votes: 75 10.2%
  • Kenwright and the board need to go. We need change.

    Votes: 558 76.2%
  • I'm indifferent. Can't decide.

    Votes: 99 13.5%

  • Total voters
    732
Status
Not open for further replies.
Speaking as someone with little knowledge of football club finances, what would be the "low hanging fruit" in terms of commercial deals that could be a big opportunity for Everton if we did get an injection of capital?
 
Just in case you don't look at the GOT home page:

https://www.grandoldteam.com/2015/08/28/post-stones-watershed/

Post Stones watershed….

So the watershed that was potentially the biggest in Everton’s recent history seems to have passed. The Board and the manager are to be congratulated for their steadfast refusal to sell a key asset in the team’s development. Evertonians the world over are walking a little taller today, proud of Martinez for saying:

"It seems like money can buy anything these days and clearly what we stand for at Everton is more important values - in football and in life - that they are more important than money."

Now I’m the first to admit, there are many things in life more important than money, but from the context of an Everton fan we need to examine carefully what message is being put out here.

Charged by many fans with stagnation, fan groups calling for change and new leaders at the top of the club, the Board are actually challenging this thought process with a very bold claim, effectively the success of the club is not dependent upon an improvement in the club’s finances beyond the passive increase in broadcasting revenues.

This is a remarkable claim, and a remarkable strategy. Can we really do the unthinkable and become competitive without access to the wealth other clubs have access to? – Some with access to huge wealth and nothing to show in terms of success.

It’s a high risk strategy to compete in the most competitive environment possible without access to the same resources as your competitors. It will never happen in F1 for example, so why might it happen in football?

The cynic in me says this is a remarkable piece of spin – yes, we wanted to keep hold of Stones for pure football reasons of course, but perhaps also to make a move against the detractors and perhaps more importantly to set a narrative which suits the financial reality of the club and their major shareholders.

The romantic in me says, it’s unlikely but possible and it (success) would be all the more sweet for having achieved it in such a manner.

However the businessman inside me says it can’t be done and to try and do so threatens the future of one of football’s oldest and finest institutions.

It threatens our future in a number of ways – the worst being totally uncompetitive, having a bad season and falling out of the Premier League. Now I don’t believe that is likely but it could happen.

Much more likely is more of the same, meaning the income and capital disparities between Everton and our competitors will continue to grow, new competition will catch up and perhaps overtake us. The path to the top of English and European football is only going to get steeper and we’re already way behind.

So what is to be done?

The pressure on the Board to invest, find new investors or sell the club must be maintained, it really must. We need investment in our young, admittedly (and thankfully) improving squad. We certainly need investment in our stadium be it a new one (WHP?) or redevelopment of Goodison itself. Finally we need capital to build our commercial activities and perhaps more importantly to sell our brand and values around the world.

It’s a great time to be talking about investing in Everton, our stock should be riding high, great values, promising team, a committed and principled manager, a great history, and an even greater future.

For it to happen though we need that investment now, not just the hope of (in rugby terms) “striking against the head.”
 

Speaking as someone with little knowledge of football club finances, what would be the "low hanging fruit" in terms of commercial deals that could be a big opportunity for Everton if we did get an injection of capital?
I don't know what 'low hanging fruit' there is regarding commercial deals currently exists either. But this is why I continue to argue that we need to improve our PR/Marketing arm. Commercial deals become more valuable when a club has a wider reach - e.g. a larger fanbase. We need to do the groundwork of building a larger fanbase, and then our traditional commercial deals will become more lucrative.

Some argue that the only way to grow our fanbase is through on-pitch success. I disagree with them and feel it's all about selling the idea of the club to potential fans.

So to answer your question - there really isn't low hanging fruit. What's concerning is that we've grabbed all the low hanging stuff and seem quite content with it.
 
People buy into winners mate, see Chelsea and Man City for details. It's how it works, trying to reverse the cycle is swimming against the tide. Commercial retail revenue alone isn't going to return us to the elite level of the game, not a chance. We need to buy our place at the table before the retail revenue aids the sustainability of staying there.
respectfully, at least here in th states, i disagree. We here typically root for the underdog. Hence why one of our biggest events, March Madness, is so popular.
 
The worldwide sales league for club shirts tells you all you need to know

http://www.totalsportek.com/football/clubs-with-most-shirt-sales/
Also the most widely marketed players and teams in the United States.

Winning has an effect, but you're ignoring basic maths.

The US has 300 million people. Say 5 million of them are possible PL fans. Say we market well and get 1/20th of them - that's 250,000 new Everton supporters. Say 1/10th of them buy kits. That's £1.25 million in the bank every year. I would call that pretty conservative.

That's not a huge number by any means, but that's 25,000 more people walking around with Everton kits in the US - marketing us for us. Let's say for the sake of argument we can market with similar efficiency in other emerging markets. Let's say we can get ~100k people buying kits every year across the world that currently don't do so. That's £5 million.

And that's before we talk about the real snowball effect - 250k new Everton supporters are going to want to read about Everton and talk about Everton - which means the media are going to talk about us more, and be more respectful towards us (don't want to upset those subscribers!) All of this bundles together.

It's obviously not going to turn us into ManU or Chelsea or City, or even Liverpool. But I simply fail to see why we are absolutely unable to globally compete with Tottenham or Newcastle - which we currently do not. Newcastle report £25 million in commercial revenue for 2014. Now, as previously pointed out they may have expenses we do not have (certainly not totaling £14 million I'd hope). And they are a one-club city, but they also do a better job selling themselves to the global audience.

ETA: That link appears to be about global sales - not targeted at one particular nation. I think you'll find different things work in different regions. I cannot speak to how to market Everton within England (and honestly don't see many gains to be made there) or Europe. I can speak to a particular, rich, emerging market though - where PR/marketing has very nearly the same effect as success.
 

I also want to point out that I'm not arguing that we spend loads and loads of money on commercial activities. I'm not suggesting that commercial activities alone will bridge the gap for us. I'm just pointing out that it's an area with high growth potential that should be doable in parallel with building a competitive team on the pitch and has a much lower risk than throwing all of our eggs into one basket.
 
Also the most widely marketed players and teams in the United States.

Winning has an effect, but you're ignoring basic maths.

The US has 300 million people. Say 5 million of them are possible PL fans. Say we market well and get 1/20th of them - that's 250,000 new Everton supporters. Say 1/10th of them buy kits. That's £1.25 million in the bank every year. I would call that pretty conservative.

That's not a huge number by any means, but that's 25,000 more people walking around with Everton kits in the US - marketing us for us. Let's say for the sake of argument we can market with similar efficiency in other emerging markets. Let's say we can get ~100k people buying kits every year across the world that currently don't do so. That's £5 million.

And that's before we talk about the real snowball effect - 250k new Everton supporters are going to want to read about Everton and talk about Everton - which means the media are going to talk about us more, and be more respectful towards us (don't want to upset those subscribers!) All of this bundles together.

It's obviously not going to turn us into ManU or Chelsea or City, or even Liverpool. But I simply fail to see why we are absolutely unable to globally compete with Tottenham or Newcastle - which we currently do not. Newcastle report £25 million in commercial revenue for 2014. Now, as previously pointed out they may have expenses we do not have (certainly not totaling £14 million I'd hope). And they are a one-club city, but they also do a better job selling themselves to the global audience.

ETA: That link appears to be about global sales - not targeted at one particular nation. I think you'll find different things work in different regions. I cannot speak to how to market Everton within England (and honestly don't see many gains to be made there) or Europe. I can speak to a particular, rich, emerging market though - where PR/marketing has very nearly the same effect as success.

Your figure of £1.25m is turnover not profit, the shirts cost how much to produce, ship and most importantly display and Stock? Retail floorspace is heinously expensive, where do you think they're going to generate enough sales to create a viable return? They're already available for US shipping with zero floorspace cost.

You've made the same mistake when looking at other club revenues, they're revenues not net profits. You're not comparing like for like.
 
We missed a huge opportunity last summer following Merica doing well in the WC/Tim Howard. We have discussed the US at length, and it is so frustrating. We even had a journo ready to do a programme on "Everton, the working mans club" type of thing.
 
Just in case you don't look at the GOT home page:

https://www.grandoldteam.com/2015/08/28/post-stones-watershed/

Post Stones watershed….

So the watershed that was potentially the biggest in Everton’s recent history seems to have passed. The Board and the manager are to be congratulated for their steadfast refusal to sell a key asset in the team’s development. Evertonians the world over are walking a little taller today, proud of Martinez for saying:

"It seems like money can buy anything these days and clearly what we stand for at Everton is more important values - in football and in life - that they are more important than money."

Now I’m the first to admit, there are many things in life more important than money, but from the context of an Everton fan we need to examine carefully what message is being put out here.

Charged by many fans with stagnation, fan groups calling for change and new leaders at the top of the club, the Board are actually challenging this thought process with a very bold claim, effectively the success of the club is not dependent upon an improvement in the club’s finances beyond the passive increase in broadcasting revenues.

This is a remarkable claim, and a remarkable strategy. Can we really do the unthinkable and become competitive without access to the wealth other clubs have access to? – Some with access to huge wealth and nothing to show in terms of success.

It’s a high risk strategy to compete in the most competitive environment possible without access to the same resources as your competitors. It will never happen in F1 for example, so why might it happen in football?

The cynic in me says this is a remarkable piece of spin – yes, we wanted to keep hold of Stones for pure football reasons of course, but perhaps also to make a move against the detractors and perhaps more importantly to set a narrative which suits the financial reality of the club and their major shareholders.

The romantic in me says, it’s unlikely but possible and it (success) would be all the more sweet for having achieved it in such a manner.

However the businessman inside me says it can’t be done and to try and do so threatens the future of one of football’s oldest and finest institutions.

It threatens our future in a number of ways – the worst being totally uncompetitive, having a bad season and falling out of the Premier League. Now I don’t believe that is likely but it could happen.

Much more likely is more of the same, meaning the income and capital disparities between Everton and our competitors will continue to grow, new competition will catch up and perhaps overtake us. The path to the top of English and European football is only going to get steeper and we’re already way behind.

So what is to be done?

The pressure on the Board to invest, find new investors or sell the club must be maintained, it really must. We need investment in our young, admittedly (and thankfully) improving squad. We certainly need investment in our stadium be it a new one (WHP?) or redevelopment of Goodison itself. Finally we need capital to build our commercial activities and perhaps more importantly to sell our brand and values around the world.

It’s a great time to be talking about investing in Everton, our stock should be riding high, great values, promising team, a committed and principled manager, a great history, and an even greater future.

For it to happen though we need that investment now, not just the hope of (in rugby terms) “striking against the head.”

An ice bucket challenge of an article that esk! And it's just what the doctor ordered in terms of looking beyond the current headlines.

It could well be - as you seem to be hinting at - that the Stones affair has not only been used in an immediate sense to deal with building off-field anger, but also offers the owners a way of repositioning themselves as old guard patrons standing steadfast against the vulgarities of the modern game.

How far that gets them when/if we start to make mid-table our new home remains to be seen. Of course, they could be handed a massive get out of jail card...a cup win perhaps. Now that would change the dynamic.
 

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