The Friedkin Group reaches agreement to buy Everton

[Moomin]

Do you have this phrase on copy & paste?

You wheel it out every time a new owner, manager or player is anticipated.

100% success rate.

 

[pfim]

We didn't really want to sell any of them though - we had to and each has gone on to arguably play better elsewhere then they did here.

The starting point for me - is being in a position to say no to selling these and your best players. Or being in a position of not selling them to teams you aspire to over take and compete against.

It starts with Branthwaite - lets keep him.

The starting point to me is to sell those players, and replace them.

We now live in a world where cash from player sales is more valuable than a cash injection from an owner.

Branthwaite is the best example in terms of how you can exponentially improve the talent in your squad.

If you sell him for 75m, and buy 5 young players for 15 million, you've leveraged his fee to not just improve the squad but perhaps the value of the squad as well.

It's tough as we form attachments to these players, and simple logic would dictate that you want to add to what you already have.

But financially and PSR wise, it's likely better to sell him.

Our problem has been that we would sell him and buy a bunch of expensive medicore, mid-aged players, or the money goes into a black hole and is never re-invested in the squad.

 

[CielosGrises]

Moshiri was in a hurry and just overpaid for some slightly above average PL players - and managers. They arrived overpaid with expectations too high. Don't want to see that again - would rather we gambled again on youngsters with higher potential ceilings - Onana-style.

 

[Bedfordblue]

Our problem has been that we would sell him and buy a bunch of expensive medicore, mid-aged players, or the money goes into a black hole and is never re-invested in the squad.

Mowers. You forget expensive mowers.

 

[pfim]

Mowers. You forget expensive mowers.

With no sell on value.

 

[Tony’s Carp]

The starting point to me is to sell those players, and replace them.

We now live in a world where cash from player sales is more valuable than a cash injection from an owner.

Branthwaite is the best example in terms of how you can exponentially improve the talent in your squad.

If you sell him for 75m, and buy 5 young players for 15 million, you've leveraged his fee to not just improve the squad but perhaps the value of the squad as well.

It's tough as we form attachments to these players, and simple logic would dictate that you want to add to what you already have.

But financially and PSR wise, it's likely better to sell him.

Our problem has been that we would sell him and buy a bunch of expensive medicore, mid-aged players, or the money goes into a black hole and is never re-invested in the squad.

The way I look at the Branthwaite situation, if we had no Branthwaite and 75m to spend very few would argue the best use of that 75m to improve the squad would be to buy Branthwaite for 75m. There are too many other requirements to ever contemplate blowing that money on just one position.

Hopefully we get to the point where the rest of the squad is sufficient to have the luxury of holding on rather than trading but even with TFG coming in that's a long way off.

 

[twoblue]

What’s the TFG group value

Probably the same about $7.5bn

That's just Dan Friedkin's personal wealth isn't it?

We're being bought by the Friedkin Group which has Gross Turnover of around $11bn every single year. Not sure what sort of profit they are making as a group, but it will be substantial.

It’s tricky to guess but Dan Friedkin is the owner of the group (and it’s a private family business) the value of the business will be used to estimate his own net worth.
Billionaires net worth will be based on the value of their businesses and other assets as a collection.
At best though, these are all guess work. Most of the individuals go to great length to disguise their actual earnings for tax avoidance.
the true net worth of these people is sketchy at best.

 

[twoblue]

Will be worth considerably more than that.

Elon Musk paid circa 8 times Gross Revenue for Twitter, that had revenues less than half of what TFG have.

But it’s about the profit margin. Apparently car dealerships make 7% gross profit on cars. Turnover would need to be high but profit will low. Therefore value of the business is likely not be on revenue but profit.
There is very little cost on increasing revenue at twitter, so can’t compare the two.

 

[AndyRJ]

It’s tricky to guess but Dan Friedkin is the owner of the group (and it’s a private family business) the value of the business will be used to estimate his own net worth.
Billionaires net worth will be based on the value of their businesses and other assets as a collection.
At best though, these are all guess work. Most of the individuals go to great length to disguise their actual earnings for tax avoidance.
the true net worth of these people is sketchy at best.

I agree with what you're saying, and i've no idea how the ownership of TFG is split, i'm sure there are other investors/ shareholders etc. However, the value of that business which turns over in excess of $11bn a year will be considerable. It's all academic though, it's not as though he is going to sell the business at any point.

 

[AndyRJ]

But it’s about the profit margin. Apparently car dealerships make 7% gross profit on cars. Turnover would need to be high but profit will low. Therefore value of the business is likely not be on revenue but profit.
There is very little cost on increasing revenue at twitter, so can’t compare the two.

Whilst i accept Twitter is a special case. it was a loss making business and still got sold for circa $44bn.

Ultimately, no-one knows what profit TFG make or how desireable it would be should it come up for sale but it's quite clearly going to be worth considerably more than the annual Gross Revenue it generates.

 

[hoppy]

Everton appear to be on track for their takeover by The Friedkin Group to be sealed by the end of November, in the view of Alan Myers.

Responding to a supporter via X on 16 October the Sky Sports reporter said his prediction for the Roma owners to be in at Goodison Park within around six weeks has not been altered by any recent information

 

[Neiler]

The starting point to me is to sell those players, and replace them.

We now live in a world where cash from player sales is more valuable than a cash injection from an owner.

Branthwaite is the best example in terms of how you can exponentially improve the talent in your squad.

If you sell him for 75m, and buy 5 young players for 15 million, you've leveraged his fee to not just improve the squad but perhaps the value of the squad as well.

It's tough as we form attachments to these players, and simple logic would dictate that you want to add to what you already have.

But financially and PSR wise, it's likely better to sell him.

Our problem has been that we would sell him and buy a bunch of expensive medicore, mid-aged players, or the money goes into a black hole and is never re-invested in the squad.

In theory you’re right, but I think there is a life cycle to it.

You are managing two resources the value of the p,Ayer and the value the p,Ayer brings your team - if you have a generational talent, who adds value to your team and will maintain gain there monetary value you keep them as long as you can, even f that means compromises elsewhere.

To illustrate what I mean, take Harry Kane, arguably he assisted hugely is Spurs breaking the glass ceiling, reaching the CL, which in turn grew the business and enabled other signings, they built their own stadium of course. Spurs famously knocked back offers, much to Kanes angst, but eventually got a very good return with a year left on his contract, after years of service.

Then Declan Rice, WHU, famously refused to sell, until his contract ran down, in the interim, he assisted into getting them into Europe, then winning a European trophy, making over 100mill plus for the club again after years of service.

Contrast this with Everton.

Wayne Rooney sold within almost a year after breaking into the first team, goes on to be Utd all time goal scorer, winning every club trophy in the game.

Antony Gordon, breaks into the team, sold within a year, goes on to win an International trophy with England U21s, awarded the best player of that tournament, post double digits in goals and assists in the PL, makes Senior England debut, goes to major international tournament a year after making Everton debut, now for another club.

There will always be a selling of your better players and you are right, a need for the revue of it, but there is also money to be made in keeping them and selling as far off in the future if you can - even if that annoys the player.

How much would a peak Rooney went for if we’d kept him for a few years, how much would Newcastle have made if they sold Anthony Gordon to the RS in the summer.

We need to keep our best players, how we manage it and lifecycle around it is awful.

 

[Drico]

So this is an interesting take. In a vacuum I see where you're coming from. My issue is that in reality, our utterly crap recruitment team replaced them and we got worse. So you're looking purely at how they did at their new clubs -- I'd argue how our club does is more important. Our club got worse ... so it didn't work.

No, it didn't work because they were sold for the wrong reasons. We were forced into selling some of them because we are a clown show. We were never replacing with better. We were being run down for financial reasons.

But the idea that Newcastle with Gordon or Villa with Digne, Barkley, and Onana are now somehow out of the reach of a well-funded, well-managed Friedkin-run Everton is for the birds. They bought our mediocre players. If we stop replacing our mediocrities with inferior players, they can be reeled in within three years.

 

[Melchizedek]

Swerve stability. I am ready to get hurt again.

I honestly won't know what to do with myself if Everton aren't a constant circus.

 

[twoblue]

No, it didn't work because they were sold for the wrong reasons. We were forced into selling some of them because we are a clown show. We were never replacing with better. We were being run down for financial reasons.

But the idea that Newcastle with Gordon or Villa with Digne, Barkley, and Onana are now somehow out of the reach of a well-funded, well-managed Friedkin-run Everton is for the birds. They bought our mediocre players. If we stop replacing our mediocrities with inferior players, they can be reeled in within three years.

Don’t think anyone thinks they are out of reach in the medium term of 3 years. But they are for the time being.