The Everton Board Thread (Inc. Bill Kenwright / Blue Union)

[davek]

Considering wage inflation - yes they are!


However Kenwright - can no longer - finance the revenue generators needed long term.

Hence a sale will happen sooner rather than later.

Its actually been fun watching you create things to fume about.

Although the administration rumours are damaging to the club (Ask Damo W). So by pedaling that around I think we've seen what you game is.

Matt, why do you think the credit situation is weighing so heavily against the club right now and forcing Moyes to watch on in the transfer window?

Is it because a) the club have run out of assets to secure credit against because they've gone to the well too many times over the years and run up 12 outstanding loans and are struggling to pay the interest on them all or b ) that we rely overwhelmingly on this strategy and have no other one - such as, say, a benefactor director who'll sink money into the sqaud?

I'll give you a clue: it was a trick question - it's both these factors.

You crack on with trying to dance on the head of a pin though - the one where you try to dance around the internal failings at boardroom that paved the way for our credit facility finally becoming exhausted.

 

[Matt Damon]

Matt, why do you think the credit situation is weighing so heavily against the club right now and forcing Moyes to watch on in the transfer window?

Is it because a) the club have run out of assets to secure credit against because they've gone to the well too many times over the years and run up 12 outstanding loans and are struggling to pay the interest on them all or b ) that we rely overwhelmingly on this strategy and have no other one - such as, say, a benefactor director who'll sink money into the sqaud?

I'll give you a clue: it was a trick question - it's both these factors.

You crack on with trying to dance on the head of a pin though - the one where you try to dance around the internal failings at boardroom that paved the way for our credit facility finally becoming exhausted.

Davek. That's the same with the majority of clubs in Europe.

If it weren't why have UEFA brought in the first changes to club licencing rules they have ?


I'll give you a clue. WAGE INFLATION adding to unsustainable liabilities to European football clubs.


But all this has done has brought forward Kenwrights inclination to sell rather than cause EFC to cease trading as you've implied was imminent.

So rather than try and picture that meteor-hitting-earth-Bruce-Willis-movie scenario you've painted time and again the past three weeks ...

Its more to do with a sale process and the club licencing regulations, plus the new building.


But you keep fuming lad. Why break the habit of a lifetime?

 

[davek]

Davek. That's the same with the majority of clubs in Europe.

If it weren't why have UEFA brought in the first changes to club licencing rules they have ?


I'll give you a clue. WAGE INFLATION adding to unsustainable liabilities to European football clubs.


But all this has done has brought forward Kenwrights inclination to sell rather than cause EFC to cease trading as you've implied was imminent.

So rather than try and picture that meteor-hitting-earth-Bruce-Willis-movie scenario you've painted time and again the past three weeks ...

Its more to do with a sale process and the club licencing regulations, plus the new building.


But you keep fuming lad. Why break the habit of a lifetime?

You're confusing effect with cause mate. Purposely.

I'm sure you'll change your mind again on the finances, though. I'll give it a month or so for you to find your new position.

 

[Matt Damon]

You're confusing effect with cause mate. Purposely.

I'm sure you'll change your mind again on the finances, though. I'll give it a month or so for you to find your new position.

Davek, you're confusing that because you obviously either can't follow the cause and effect or - due to your particular agenda, or don't wish to !

My flags been planted. You know I'll always counter the snides.

Oh and my bets on (see below).

 

[cymrublue]

If that is correct, it is not going to reveal anything about our current financial state.

sure it is,could be April but I'm sure it doesn't run until the end of the calendar year but the tax year so we might not get anywhere near the full picture but we might get an insight into what happened in the summer transfer window and the lack of signings

 

[formerly manx toffee]

ponders.... still don't remember him saving the club....did he have his superman vest on?

Apologies for not responding. Thought discretion was the better part of Valerie and given the tone between MD and Davek I started reading Mrs Moyes introduction instead. Which is a must read btw.

As you have neg repd me here you go....... Agent Johnson.

 

[Cena]

 

[turner]

look, can I get a tattoo of kaka or what? I NEED TO KNOW.

 

[super mo]

snippit from todays mail.
The money involved in everthing to do with the barclays premier league is such the everton felt it necessary to take tour organisers alexander ross to court,claiming they had a verbal understanding before losing out to tottenham for a pre-season tournament to south africa in 2007.The case was dismissed in a manchester courtlast week,with everton facing legal costs of at least £300,000.


The mind boggles!if this is true who advises this board and what is it with everton and verbal agreements!! the incompentace that this board has shown over the years is staggering!!!!!!!!!!

 

[davek]

snippit from todays mail.
The money involved in everthing to do with the barclays premier league is such the everton felt it necessary to take tour organisers alexander ross to court,claiming they had a verbal understanding before losing out to tottenham for a pre-season tournament to south africa in 2007.The case was dismissed in a manchester courtlast week,with everton facing legal costs of at least £300,000.


The mind boggles!if this is true who advises this board and what is it with everton and verbal agreements!! the incompentace that this board has shown over the years is staggering!!!!!!!!!!

No wonder the accounts are in a mess. Bungling and inept sums Elstone up. He was deputy CEO at the time of that happening, but he was the feller given tasks like this whilst Wyness got on with the Kirkby stadium bid. We shouldn't be surprised, though. This is the CEO who thought it was a good idea to take an Everton vendor to court for using The People's Club on his merchandise...not bothering to find out that he'd trademarked it himself!

 

[Damo W]

If you want to see a badly run football club, think back to before Trevor Birch was appointed. Now that was badly run. Or look at Leeds and Portsmouth they are great examples!!

Don't get me wrong I am not saying Everton are run perfectly now as I am not, there are definite improvements that could be made.

But getting back to its well run/not well run finances. Assuming that Everton are having difficulty with refinancing its loans, the auditors would have asked for reassurance that EFC can meet its cashflow for the next 12 months. Now provided the audit report is unmodified, (I have to assume it is otherwise the accounts just wouldn’t have been signed, EFC would have waited until they had no other choice before singing a set of accounts with a modified audit report.) then the auditors are comfortable that EFC can continue for a further 12months from the date of signing the accounts.

Now yes the accounts are a snap shot at the 31st May 2010 but because of what Auditors and directors have to sign off on they also give some idea of the picture going forward. Ie how much EFC owe and are owed plus when loan repayments are due.

Given the rumours and possible bank covenant restrictions you may find that Everton were under pressure to have signed accounts by 31 January, and if refinancing was not immediately available and still under negotiation then the players released would have been done to convince the auditors cashflows could be met thus obtianing their signature and possibly meeting covenants and stopping the rumours.

Unforntunatly EFC has to be run more as a business than say Man City or Chelsea (due to difference in owners pocket sizes). Therefore yes as Evertonians it is worrying seeing Everton having to release players on loan etc it affects the depth of the squad for starts, but if we were close to administration loans just would not have done, as we improve our cashflow on a monthly basis as we are saving on wages. And having to run around sorting cashflows out is a just a matter of day to day business, unfortuantly Everton have a passionate customer base who are fans who want to know whats going because the board members/owners are custodians as Everton belongs to us.

Football clubs have to sell players in order to meet its cashflows, nearly all clubs have to do it, but some can get away with reallying on wealthy owners, where just not that lucky to have one wealthy major shareholder. So I don't believe we are close to administration, I also am putting my flag firmly next to Matt Damons. I see the club being sold by the summer, if not then some substantial investment will be made.

 

[ForeverEverton]

Where THT or LCAB, is there any truth in the rumours at the moment. They have been very very quiet since the transfer window closed.

Is something about to happen ???

 

[Matt Damon]

Where THT or LCAB, is there any truth in the rumours at the moment. They have been very very quiet since the transfer window closed.

Is something about to happen ???

LCAB doesn't do rumours and doesn't tend to get into this stuff.

Plus they had a very busy time over the transfer window.


I've got money on the club being sold by the summer. If that helps.

 

[Matt Damon]

If you want to see a badly run football club, think back to before Trevor Birch was appointed. Now that was badly run. Or look at Leeds and Portsmouth they are great examples!!

Don't get me wrong I am not saying Everton are run perfectly now as I am not, there are definite improvements that could be made.

But getting back to its well run/not well run finances. Assuming that Everton are having difficulty with refinancing its loans, the auditors would have asked for reassurance that EFC can meet its cashflow for the next 12 months. Now provided the audit report is unmodified, (I have to assume it is otherwise the accounts just wouldn’t have been signed, EFC would have waited until they had no other choice before singing a set of accounts with a modified audit report.) then the auditors are comfortable that EFC can continue for a further 12months from the date of signing the accounts.

Now yes the accounts are a snap shot at the 31st May 2010 but because of what Auditors and directors have to sign off on they also give some idea of the picture going forward. Ie how much EFC owe and are owed plus when loan repayments are due.

Given the rumours and possible bank covenant restrictions you may find that Everton were under pressure to have signed accounts by 31 January, and if refinancing was not immediately available and still under negotiation then the players released would have been done to convince the auditors cashflows could be met thus obtianing their signature and possibly meeting covenants and stopping the rumours.

Unforntunatly EFC has to be run more as a business than say Man City or Chelsea (due to difference in owners pocket sizes). Therefore yes as Evertonians it is worrying seeing Everton having to release players on loan etc it affects the depth of the squad for starts, but if we were close to administration loans just would not have done, as we improve our cashflow on a monthly basis as we are saving on wages. And having to run around sorting cashflows out is a just a matter of day to day business, unfortuantly Everton have a passionate customer base who are fans who want to know whats going because the board members/owners are custodians as Everton belongs to us.

Football clubs have to sell players in order to meet its cashflows, nearly all clubs have to do it, but some can get away with reallying on wealthy owners, where just not that lucky to have one wealthy major shareholder. So I don't believe we are close to administration, I also am putting my flag firmly next to Matt Damons. I see the club being sold by the summer, if not then some substantial investment will be made.

I'm putting my flag next to yours.

For me all roads are leading this way Damo.


And the fact is - as Keith Harris said on Radio City Terrace Talk, Everton's a much bigger club and ergo more expensive - hence why Blackburn's purchase was much quicker. Plus complicated that Kenwright and Co thought they could put these things in place themselves, and reap the club value benefit. They were wrong.

It was a big mistake they signed that exclusivity agreement.


But I'd counter his (Harris's) point - that the stadium is a stumbling block. Its less of one than people think. I think Elstone overstated the redevelopment issue, due to lack of finances with these board members.


Just a 5000 increase in capacity would bring £3million a year into the club. A 10000 increase £6million per year. Thats before any corporate sale and corporate capacity changes.


Everton has big untapped revenues the current board don't have the finances to tap to obtain that increased turnover.

Hence Everton to quote Keith Harris, "is on a number of people's shopping list".



If you look back to 1994, when the park end was rebuilt - IT WAS CRIMINAL that they didn't ensure capacity could be 45000. That has since meant that the Red****e have turned over £60million MORE than us - JUST ON THAT MISSING 5000 CAPACITY.

Thats the stumbling block.

But not a big one for an investor with pockets to build up our infrastructure quickly.

 

[Muggins]

I'm putting my flag next to yours.

For me all roads are leading this way Damo.


And the fact is - as Keith Harris said on Radio City Terrace Talk, Everton's a much bigger club and ergo more expensive - hence why Blackburn's purchase was much quicker. Plus complicated that Kenwright and Co thought they could put these things in place themselves, and reap the club value benefit. They were wrong.

It was a big mistake they signed that exclusivity agreement.


But I'd counter his (Harris's) point - that the stadium is a stumbling block. Its less of one than people think. I think Elstone overstated the redevelopment issue, due to lack of finances with these board members.


Just a 5000 increase in capacity would bring £3million a year into the club. A 10000 increase £6million per year. Thats before any corporate sale and corporate capacity changes.


Everton has big untapped revenues the current board don't have the finances to tap to obtain that increased turnover.

Hence Everton to quote Keith Harris, "is on a number of people's shopping list".



If you look back to 1994, when the park end was rebuilt - IT WAS CRIMINAL that they didn't ensure capacity could be 45000. That has since meant that the Red****e have turned over £60million MORE than us - JUST ON THAT MISSING 5000 CAPACITY.

Thats the stumbling block.

But not a big one for an investor with pockets to build up our infrastructure quickly.

Surely they can add a second tier onto the Park End, and remove more of the stantions / posts, holding up the lower bullens....

improve line of sight views and increase capacity?