Usmanov

[ToffeeTim]

Ha ha you asked the question,

Ive just shown you our balance sheet position are you not concerned.

In the last set of accounts we were holding the largest debt in the clubs history, 66 mill. Thats before this years accounts before we make the biggest loss in the clubs history. Amortisation is an accounting practice, but its there for a reason and has significant impact on real life events, not least due regulation.

For example and in in tangent with meeting our debt obligation and controlling the balance sheet we had to sell some players we didnt want to, basically player trading, for me significantly we lost Gueye and Lookman, two player s i think we would have prefered not to. Granted both wanted moves but our financial position in my opinion and the need to get revenue into business made us very willing sellers, amortization came into those deals as well. Thats has had real life impact on results and progress in my opinion.

So holding 66 mill, we are likely going to accrue more in the next set of accounts with our huge loss, we are likely to take on debt north of an additional 500 mill quite shortly to fund BMD, given our balance sheet i dont think there is question that as business in isolation, the club finances are an unsustainable mess in isolation.

Think we will agree to differ, in terms of our points of view.

Erm.. no mate. All the specific items you mentioned were income and expenditure items, I.e go on the P&L.

You didn't mention assets and liabilities until there now when you mentioned debt.

As for selling Gueye for financial reasons only, well no that's just daft. The lad wanted to play for PSG. Pure and simple. And Lookman is rubbish. Sold for footballing reasons.

I think you have a preconceived view and its throwing your facts. You seem convinced we cant service our debts. That's fine and up to you. But you've not given one reason why you believe we cant.

 

[bullybeef]

They'll start stopping these insane sponsorships now Everton are in the game.

Guaranteed.

 

[GrandOldTeam]

Accounts out on the 14th?

Who cares about that?

Uncle Alisher has us covered.

 

[blueblue]

Moshiri and Usminov may be very wealthy men but the clubs finances as a business are a mess. Getting the money into the business and meeting our regulatory commitments is a challenge as i have mentioned and as you can see below.

Projected from May 18 - May 19 (doesn't include this summer spending/sales etc):

Total income: 175mill
Profit on player sales: 13 mill

Wages: 145mill
Other Operating costs: 40mill
Depreciation: 4 mill
Amort 80 mill
Exceptional costs: 12 mill
Interest: 2k

Projected on subjective figures 90 -100 mill loss.

* Depending on planning decision of BMD before March we may be able to write 30 mill off but wont be in this set of accounts.

* Doesnt include whatever equity Moshiri may have provided if any.

* We also changed our financial year from ending in May to June this year so may include an odd sale of anyone we sold in June 19 as minus on the overall loss.
[re or less /QUOTE]
In all probability the figures you mention there are probably more or less correct.
However, from a cashflow point of view if we strip away the depreciation and amortisation (write off of players cost over years) then we could arguably be close to breakeven.
I would also say that we do not include the value of home grown players in our figures(my understanding) and if we look at the increase in value of DCL, Kenny, Holgate and Davies(all young, all English) I think that would wipe out most of the amortisation cost. Of course we should also consider the increase in value of players like Richarlison, Pickford and Digne which also will not be reflected.

Overall, whereas on the face of it the accounts may look poor the underlying factors would give a more positive picture.

Excluding player related activities we are more or less at breakeven given normal trading incomes and expenses.

What the plan for the future is if we continue to spend pots of money is a different question.

 

[CielosGrises]

This really. It completely baffles me how people make pages of Everton related business matters like the billionaire ACCOUNTANT hasn’t got a grasp of the Everton figures.

I don't think anybody expects Moshiri to come out of it badly - it's how things affect the club - in fact exactly the notional reason that FFP came into existence.

 

[ForeverBlue92]

When was that actual interview conducted? Yesterday or weeks ago?

 

[blueblue]

Guaranteed.

That is going to hit the established top of the table clubs far harder than it will hit us.
They may want to shut the gates on any new clubs joining the party at the top of the table but they have to act within the law and the law must apply to everyone.

 

[Tony1985]

I don't think anybody expects Moshiri to come out of it badly - it's how things affect the club - in fact exactly the notional reason that FFP came into existence.

But that’s my point, it won’t effect the club. Although Moshiri has come across a bit naive at times, he completely knows what he’s doing when it comes to accounts and figures, he’s literally made a billionaire career out of it.

 

[fandjango]

Person posts opinion on opinion forum shocker. lol

They arent really my beliefs to be honest, they are an analysis and conclusion of information already in the public domain id be open to be corrected. As for beliefs im fighting with myself with them to be honest as by nature id be an optimist especially when it comes to Everton so id like the luxury of blind faith. I honestly wish my analysis and conclusion is better then i think it is and if it is ill be pleasantly surprised. Ill commend whoever covers the loss if it comes to pass.

Hopefully you are more right then me on your analysis and conclusion, ill be open to a scald if im wrong, but id say im ball park though and they are a mess.

Your opinion was posted as a challenge to other poster shocker
One like it done to you shocker

 

[Toffeelover]

When was that actual interview conducted? Yesterday or weeks ago?

Last month.

 

[MrGrumpy]

Who cares about that?

Uncle Alisher has us covered.

But does he?

 

[blulouie]

When was that actual interview conducted? Yesterday or weeks ago?

Week before Ancelotti was announced.

 

[ForeverBlue92]

Week before Ancelotti was announced.

Seems too much smoke without fire if Usmanov then meets Ancelotti and he becomes our manager.

Sounds like only a matter of time before he buys into the club or pumps in a big sponsership deal on the stadium.

 

[MrGrumpy]

Seems too much smoke without fire if Usmanov then meets Ancelotti and he becomes our manager.

Sounds like only a matter of time before he buys into the club or pumps in a big sponsership deal on the stadium.

We won’t find out financing for the stadium till PP is granted which could take 9 months(as it did with the Echo ArenA)

 

[CielosGrises]

But that’s my point, it won’t effect the club. Although Moshiri has come across a bit naive at times, he completely knows what he’s doing when it comes to accounts and figures, he’s literally made a billionaire career out of it.

I appreciate that he has an investment in the club and that he wants to get back over time - assumedly by selling shares as we don't tend to make a profit / dividend and I can't see that happening for some time yet. I'm glad we have an owner that fans seem to trust.

However, clubs have gone under with (rich) owners writing debt against them - that isn't something people are making up - it was the supposed reason for introducing FFP. Although I understand that the conspiracy is the monopoly / bolted door.