Should Everton fans worry?
- Thread starter bluebell
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Hey, you have to spend money to make money.
You have to spend money to make losses too.
Remember the last time Everton won a trophy? i do, I was playing this FIFA:
They should worry about that.
They should worry about that.
Couldn't give less of a fuck.
Allan is a good signing for them.
But again, they're gonna outspend us. Like 95% of the league.
But again, they're gonna outspend us. Like 95% of the league.
Yeah - but their wage bill is like £90m or something (compared to ours is £200m+).
That means their wages are less than the minimum amount they’ll get for being in the Premier League - so they’re not as impacted by a fall in match day revenue or shit sponsorship deals.
We need more income to maintain paying top players, top dollar and hanging on to those players. Any decent players Everton actually get will always leave for a better salary if they’re good enough for a top team to come in.
So, no, they’re not in trouble unless they get relegated - which they won’t.
But, as Sean said... as if any of us give a fuck about them.
That means their wages are less than the minimum amount they’ll get for being in the Premier League - so they’re not as impacted by a fall in match day revenue or shit sponsorship deals.
We need more income to maintain paying top players, top dollar and hanging on to those players. Any decent players Everton actually get will always leave for a better salary if they’re good enough for a top team to come in.
So, no, they’re not in trouble unless they get relegated - which they won’t.
But, as Sean said... as if any of us give a fuck about them.
[article]
Everton have announced record losses of £111.8m for the year to June 2019
But spending on players has taken wages to £160m, with Everton's wage-to-revenue ratio increasing from 77% in 2018 to 85% for last season.
[/article]
https://www.bbc.co.uk/sport/football/51114007
Yeah - but that £100million loss appears to have been made up of paying off debt (£50m) and some other one-off investments.
Their biggest revenue stream - like 65% of revenue, is the the Premier League - which in terms of £££’s isn’t significantly different between teams regardless of where they finish in the league.
If their wages are £160m and they’re guaranteed £125m+ a year Vs us with wages of £260m and £150m guaranteed from the Premier League it shows a different picture.
Our Match Day revenue and other commercial income is higher - and it needs to be to fund the higher wages - but these revenue streams are also likely to be the ones that are more volatile and impacted by COVID.
We lost, probably, £20m by going out of the Champions League against AM - and lose £3m, apparently, whenever we have a home game with no crowd.
Anyone that’s spending now is either doing so because they are less reliant on Commercial & Match Day revenues, have lower outgoings that they can offset against the more guaranteed Premier League revenue, or simple don’t care about the risks.
Apart from the ground, the new training facilities, improved contracts for players that until a year ago would have fucked off to Spain at the drop of a hat, and the signings we will make before the transfer windows shuts in over a month.
That doesn't sound right - you can't generate losses by repaying debt and making investments. They're balance sheet movements.
That's correct. They did pay off some debt but that isn't part of the loss. They're in a mess.
They took on just under £150m new debt from Moshiri in the year (although it's treated as equity in the accounts), paid off £75m of other debt - so they needed £75m cash injection to balance the books. Moshiri is funding their spending.
Most of that spending looks like it will be recurring so they're going to need topping up again.
You’re probably right - I’ve already spent too long reading about football club finance & the effect of COVID.
Needless to say - any team that increases their expenditure at a time when their income is getting slashed will likely cause themselves some problems.
I’m basing the fact that Everton may get away with doing it by assuming the most significant part of their income comes from the relatively fixed sums they get from the Premier League.
So - in theory it should be easier for them to balance their books if they cut their costs.
Few things on their last accounts.
- The accounts are for a thirteen month period so the loss will look worse as they'll have an extra month of costs (June 2019) with little income coming in to offset them.
- I can easily see them making a similar operating loss in 2019-20, but they should have a higher profit on player sales to offset this. Should still be a big net loss though.
- They'll have the costs of sacking Silva to add in - likely to be an extra £10m+.
- I think their cumulative losses over three years could breach the Premier League FFP rules (maximum losses of £105m). They would be more highly scrutinised by the league and could be given a transfer ban (although if Moshiri continues to bail them out they could probably get away with that).
- The key for them is going to be keeping a handle on their wage bill as that's the only real area where they could make meaningful savings.
- Alternatively, they're going to need to sell anyone they can get decent money for, and that's not going to be easy.
Not sure if that's sound tbh - a much larger fraction of their income will be from gates, so that's going to cut closer to the bone than it does for other more 'commercially leveraged' 'brands' like us.
It's really about how the margin can absorb a loss of revenue before you wipe out profits. Obviously with them making huge losses already that's not ideal!
They only took £14m from matchday income in 2018-19 - that's less than 8% of their total income. Loss of match revenue won't hit them like it hits us, largely because they don't do much corporate hospitality (which is part of their rationale for leaving Goodison) and because they don't have as many fixtures with not being in Europe.
Ah fair enough, I stand corrected.
They should be worried if Tom Davies starts for them next season. He’s fucking shit.
It seems you've just answered your own question.
Remember that summer when they bought Rooney Klasson Siggurdson and about another 10 players spanking over £100m and everyone including Richard Keys was wanking over them saying they'd won the transfer window and would challenge for the title... And what happened next and has continuing to happen is the same old shite. They've got a director of football there in Brands who's letting the manager or chairmalen dictate which players to sign. Walcott Rooney Klasson Bolasie. And now Allan and James. This is going to end spectacularly bad when they lose a few games early on and there's pressure on Ancelotti and his signings. The only saving grace is no fans in the ground on his back but it'll happen. I'm convinced. They just seem to be repeating the same stupid mistakes over and over again.
Allan is a good player, Doucoure is an improvement on the shite that currently gets a game, and James Rodriguez looks destined to be a bad signing. Who knows though. At least they've got some money to spend.
doucoure is a great signing
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