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

[Neiler]

This is the PR battle now being waged by the board, yes. They're preparing the ground all the time for the grim period ahead (which is another reason to dismiss the idiotic talk of an imminent takeover *some* people would have you believe is on the cards, the board are in this for the long haul).

Of course, whether this grim future is accepted or not is another thing entirely.

I have to say i agree with that mate on any potential takeover, from what i an gleam from whats happening at the club they are already doing things to fill the void in reveue anticipated for the next year.

The accounts we have just seen bring us up to May 2010, they were boosted by income from European Football and a higher prem finish then is likely this season. Additionaly those account dont take into account the majority of the new contracts signed in the summer. Our revenue will be down in the next year based on this season because of no European Football, an anticipated lower Prem finish, and fewer televised games - while we have made a huge increased outlay on new contracts since May. Basicly we are looking into a number of hits based on this season with a higher cost base then the one that was published just last week, meaning another massive hole the club will have to fill in terms of lost revenue and quite possibly additional debt.

Now, knowing that last weeks accounts take us up to last May, since that date we have lost up to 8 players from the senior squad, thats 8 wages of the books and a couple of loan fees and the Pienaar money coming in. That will make up some of the short fall in lost revenue next year but not all IMO. Anyhow back on point the fact that the club is shedding the fat in getting these players away from the club leads me to beleive thay have a strategy in place to meet the anticipated loss next year, by basicly dismantleing the senior squad as much as is realisticly possible, saving on wages whereever possible.

This leads me to beleive there going no where - with a plan in place however tragic it may be - for the next year.

 

[FinchFarmBlue]

I have to say i agree with that mate on any potential takeover, from what i an gleam from whats happening at the club they are already doing things to fill the void in reveue anticipated for the next year.

The accounts we have just seen bring us up to May 2010, they were boosted by income from European Football and a higher prem finish then is likely this season. Additionaly those account dont take into account the majority of the new contracts signed in the summer. Our revenue will be down in the next year based on this season because of no European Football, an anticipated lower Prem finish, and fewer televised games - while we have made a huge increased outlay on new contracts since May. Basicly we are looking into a number of hits based on this season with a higher cost base then the one that was published just last week, meaning another massive hole the club will have to fill in terms of lost revenue and quite possibly additional debt.

Now, knowing that last weeks accounts take us up to last May, since that date we have lost up to 8 players from the senior squad, thats 8 wages of the books and a couple of loan fees and the Pienaar money coming in. That will make up some of the short fall in lost revenue next year but not all IMO. Anyhow back on point the fact that the club is shedding the fat in getting these players away from the club leads me to beleive thay have a strategy in place to meet the anticipated loss next year, by basicly dismantleing the senior squad as much as is realisticly possible, saving on wages whereever possible.

This leads me to beleive there going no where - with a plan in place however tragic it may be - for the next year.

Arrrgh- that bit is so depressing if it comes to be. The club need to be attracting fans not turning them away but another catch 22 it seems with the current financing model.

 

[davek]

I have to say i agree with that mate on any potential takeover, from what i an gleam from whats happening at the club they are already doing things to fill the void in reveue anticipated for the next year.

The accounts we have just seen bring us up to May 2010, they were boosted by income from European Football and a higher prem finish then is likely this season. Additionaly those account dont take into account the majority of the new contracts signed in the summer. Our revenue will be down in the next year based on this season because of no European Football, an anticipated lower Prem finish, and fewer televised games - while we have made a huge increased outlay on new contracts since May. Basicly we are looking into a number of hits based on this season with a higher cost base then the one that was published just last week, meaning another massive hole the club will have to fill in terms of lost revenue and quite possibly additional debt.

Now, knowing that last weeks accounts take us up to last May, since that date we have lost up to 8 players from the senior squad, thats 8 wages of the books and a couple of loan fees and the Pienaar money coming in. That will make up some of the short fall in lost revenue next year but not all IMO. Anyhow back on point the fact that the club is shedding the fat in getting these players away from the club leads me to beleive thay have a strategy in place to meet the anticipated loss next year, by basicly dismantleing the senior squad as much as is realisticly possible, saving on wages whereever possible.

This leads me to beleive there going no where - with a plan in place however tragic it may be - for the next year.

Agreed 100%. Why on earth would you go through the storm likely to meet this scorched earth policy if you weren't looking at staying put at the other end of it? You'd just find a buyer now and leave them to crack on with it - of course, any such new owner would have to factor what you posted above into their evaluation of the club's worth and adjust their offer accordingly, but that'd be the easiest route for our current board of directors to take rather than take on that thankless task themselves for a few years with absolutley no guarantee that their deficit reduction package would be rewarded significantly.

Does this sound like we have a board looking to sell up? http://www.evertonfc.com/news/archive/2011/02/16/blues-face-the-fans

 

[kenada_blue]

Agreed 100%. Why on earth would you go through the storm likely to meet this scorched earth policy if you weren't looking at staying put at the other end of it? You'd just find a buyer now and leave them to crack on with it - of course, any such new owner would have to factor what you posted above into their evaluation of the club's worth and adjust their offer accordingly, but that'd be the easiest route for our current board of directors to take rather than take on that thankless task themselves for a few years with absolutley no guarantee that their deficit reduction package would be rewarded significantly.

Does this sound like we have a board looking to sell up? http://www.evertonfc.com/news/archive/2011/02/16/blues-face-the-fans

If this is the case...something needs to be done.

I find it funny that keioc and fans were in uproar rightly or wrongly over dk and trying protect the future of the club...but very little is now being done to combat the fact there is no future with the current board, the manager who saved us could be goin, and we could be in the same position we are now league wise next season

Kenwright etall are just brushing things aside in regards to answering the fans hoping itll go away. Theyll bash certain fans who said wed be in administration and were wrong, but dodge the questions about where they are actually taking the club.

The point brought up about sunderland and their finances made people think oh wow what a loss, but dont see the potential that club can reach, they see a goal. We dont as a club

 

[davek]

If this is the case...something needs to be done.

I find it funny that keioc and fans were in uproar rightly or wrongly over dk and trying protect the future of the club...but very little is now being done to combat the fact there is no future with the current board, the manager who saved us could be goin, and we could be in the same position we are now league wise next season

Kenwright etall are just brushing things aside in regards to answering the fans hoping itll go away. Theyll bash certain fans who said wed be in administration and were wrong, but dodge the questions about where they are actually taking the club.

The point brought up about sunderland and their finances made people think oh wow what a loss, but dont see the potential that club can reach, they see a goal. We dont as a club

They should also be aware that the debt's Sunderland have run up - like Aston Villa's - are through owner's putting up extra finances at zero % rates of interest. If that's what we were able to do instead of going to banks and finance houses who want top whack interest we'd have about £5M less to find each year - or, put another way, £5M more for Moyes to use on transfers.

 

[Neiler]

They should also be aware that the debt's Sunderland have run up - like Aston Villa's - are through owner's putting up extra finances at zero % rates of interest. If that's what we were able to do instead of going to banks and finance houses who want top whack interest we'd have about £5M less to find each year - or, put another way, £5M more for Moyes to use on transfers.

No, no, no, - come on lads your both better then that.

Question why are they loans and not just handouts?

 

[davek]

No, no, no, - come on lads your both better then that.

Question why are they loans and not just handouts?

Because these people aren't oligarchs with an oilfield in Siberia spewing out Billions.

It's actually, for the most part, the model that John Moores used: digging in and loaning to the club and standing behind loans. I'm not saying it's ideal, but right now it's a damn sight better deal than Moyes is getting.

 

[kenada_blue]

They should also be aware that the debt's Sunderland have run up - like Aston Villa's - are through owner's putting up extra finances at zero % rates of interest. If that's what we were able to do instead of going to banks and finance houses who want top whack interest we'd have about £5M less to find each year - or, put another way, £5M more for Moyes to use on transfers.

And I'd hazard a guess that the owners are putting up the extra finance at zero interest will have a escape route and will sell up to a buyer, getting the money the put into the club back, and pull out risk free.

 

[davek]

And I'd hazard a guess that the owners are putting up the extra finance at zero interest will have a escape route and will sell up to a buyer, getting the money the put into the club back, and pull out risk free.

So be it.

Hopefully they'd then buy Everton and give our manager a fighting chance too.

 

[Neiler]

Because these people aren't oligarchs with an oilfield in Siberia spewing out Billions.

It's actually, for the most part, the model that John Moores used: digging in and loaning to the club and standing behind loans. I'm not saying it's ideal, but right now it's a damn sight better deal than Moyes is getting.

Exactly and the same thing that happened to us will happen to the Villas, Sunderland etc. Left high and dry once the drip feed is gone.

Its another unsustainable model, they turnover 64mill and their wages are 46million and have debts of 48mill. - before operating costs.

Organicly we're actually healtheir.

 

[atrottel]

Question why are they loans and not just handouts?

I think you'll find that some of them have also been converted into equity (Sunderland, Chelsea, Fulham, afaik).

It's a valid point. It would save a good deal of money and presumably increase prospective value if the club didn't have to pay penal interest rates on long-term finance (net £4.5m). On the other hand, if one is looking for a short-term exit, the existence of interest-free/low-interest loans which would need to be financed or similarly loaned by the new buyer might affect the saleability.

 

[Goat]

We have debts of 90m how is our situation better?

 

[davek]

Exactly and the same thing that happened to us will happen to the Villas, Sunderland etc. Left high and dry once the drip feed is gone.

Its another unsustainable model, they turnover 64mill and their wages are 46million and have debts of 48mill. - before operating costs.

Organicly we're actually healtheir.

Take the interest payment's for the securitization loan into accouint and our liabilities are way in excess of that figure. I'd also add that in terms of Sunderland they have to wait and see whether their splurge has paid off yet. They're doing ok in the Premier League and will hope to consolidate and push on. We, on the other hand, are a busted flush and it'll get a whole lot worse before it gets better...as everyone now is prepared to admit.

 

[Neiler]

And I'd hazard a guess that the owners are putting up the extra finance at zero interest will have a escape route and will sell up to a buyer, getting the money the put into the club back, and pull out risk free.

Would doubt it to be honest, there is .7% intrest on many of their loans. Intresting to see payments to directors at 1.112mill.

 

[Neiler]

Take the interest payment's for the securitization loan into accouint and our liabilities are way in excess of that figure. I'd also add that in terms of Sunderland they have to wait and see whether their splurge has paid off yet. They're doing ok in the Premier League and will hope to consolidate and push on. We, on the other hand, are a busted flush and it'll get a whole lot worse before it gets better...as everyone now is prepared to admit.

On the total figure, Man Utd, Newcastle etc pay far more/ higher rate in terms on intrest on their securitization deals then we do - Leeds deal effectively consigned them to football oblivion for ten years. Beleive it or not ours is the cheapest in the league, though it kills us in conjunction with other intrest on borrowings.

Agreed we're not great and we are unsustainable, but Sunderlands accounts are a great example of how investing in players doesnt always pay off - for example they made a net loss of £25.5 mill in 2009 and again this year they lost 28 million. They spent over 50 million in transfer fees and debt has bee heaped onto the club however sugar coated that is - and it did aboslitley nothing for the buissness - turnover grew by .9mill after dropping over 50mill yet their losses increased by 3mill anually, in fact their average attendances are down. Clearly unsutainable.

Ill let you guys do the Maths.