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Everton Financial Report 2010

please stay StevieP! <3
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Got sent this today in an email floating around the ESC. Even though a lot of it's dribble it just highlights what grave danger we're in at this moment in time.

"The biggest thing to jump out of the Everton balance sheet for 2010 is that for the fifth consecutive year it has negative net worth.
In pure accounting terms, the business owes more than it owns. In layman’s terms, it has a mortgage for £95 million and a house
worth £65 million (see net liabilities of £29.8 million for 2010). However, remember that there is no guarantee that the house
would sell for 65 million as market forces are at play – although the debt will definitely stay at £95m)
Everton show that they have fixed assets (a stadium) worth £8m and players worth £45m. In addition to this it has £11m current
assets (money owed to them) resulting in overall assets of £65m.
Everton also however owes money and pays interest on this money. The accounts show that £52m is due to be repaid to creditors
within a year and that a further £41m is due after one year. This shows that £95m is owed in total and results in the net liabilities
figure of £30m (to be exact £29.774m)
The club defines borrowings however as £47.6m and points out that £21m isn’t due for 5 years. It defines it’s net debt position as
£44.9m but the reader should note that none of these numbers show on the balance sheet.
In effect, the club is saying that of the £95m it owes, £45m is in a formalised loan agreement and the rest in bank overdraft,
money owed to suppliers and short term loans etc. However, by law the balance sheet cannot lie and the auditors have published
a balance sheet which clearly show £95m of liabilities and only £65m of assets.
Whilst it is important to note that the players are on the balance sheet at £45m and that home grown players show no value, the
counter argument is that any credible Premier League squad should be at least £50m and this is simply the cost of being in the
game. In other words, it’s an asset which must be replaced to continue trading.

• Creditors due long term has risen from £25m to £41m since 2006
• Creditors due within the year has risen from £26m to £52m since 2006
• Total assets less current liabilities has dropped from £19m to £13m since 2006
• Tangible assets (ground, training facilities etc) have dropped from £11.3m to £8m in the last 5 years.
The Profit

The Profit and Loss Account shows a trading loss of £17.7m for the year to May 2010 and that loan interest has increased to
£4.5m per annum. This combined loss of £22.2m was compensated by a gain of £19m, which was the profit on the sale of
players – namely Joleon Lescott to Manchester City. The cash income from this transaction shows to be the most important
factor in the P&L performance and resulted in an overall loss of £3m. Last year the loss was £7m despite making only £4m on
player sales so this suggests that underlying costs are rising way ahead of income."

Just to sum up.

We have negative equity of £30 mill.

We have a trading loss of £19 mill last year.

But

We received £19 mill up front last season from City but only forked out initial part payments of some £9 mill ( max ) for the purchases of Johnny H, Distain and Billy.

Our trading loss if we had not managed to stitch City up would be nearer £30 mill.

We also received a one off payment for Bellefield of £8 mill which it is believed was massaged into debt repayment within the latest accounts.

Without that, our trading loss zooms to £38 mill.

It is understood that gate receipts are down for this trading period.

Nobody will pay 100% upfront (except maybe City again ) for any of our players in the next transfer window.

The trading loss will accelerate .................. our credit score is a lowly 12 which is defined as "Cash transactions only".

We have no hiding place..............no respite from the increase in debt.

Unless we can find another £20 mill worth of upfront cash from player sales we are doomed.

Without a buyer. the club will cease to exist in two years.
 
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knew things were dire, but man alive...
 

Ben

I am a biased ****.
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Hope to God Everton sort this out, Kenwright really needs to get off his **** and find someone with a bit of cash to invest. Hate Everton and all but this has really made me worry about Everton's future. Y.N.W.A bluenoses :'(
 
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I literally have no idea what I will do with myself if Everton are made to fold. My life will never be the same. Might start a charity...
 
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ooh my god :'(
if everton dissapear i will move out from merseyside and hide in a cave :(
 
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somebody out ther must want to take them over
there're a good club.
they dont need billionaires to pump money in like city
 
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I can't believe their total tangible assets are just £8 million. I mean I know Goodison Park is pretty ***** but I would have expected the stadium alone to be worth more than £8 million, let alone training facilities and all that good stuff.
 
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Im waiting for a Sugar Daddy to buy the club
We need a Arabian Billionaire with Tons of Money and nowhere to spend it
an Russian is good too :D
 
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Had a look at those figures and they're horribly watertight... terrible stuff. Hope you can find an investor, CPFC was in this situation the other year, thank god we got investors to stop us folding.
 
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somebody out ther must want to take them over
there're a good club.
they dont need billionaires to pump money in like city
You are totally right we never needed tons of money and we dont need it now

we just need to get out of the debt :mad:
 
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I can't believe their total tangible assets are just £8 million. I mean I know Goodison Park is pretty ***** but I would have expected the stadium alone to be worth more than £8 million, let alone training facilities and all that good stuff.
You say *****, I say traditional, homely, unique, atmospheric.
 
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No wonder Moyes is broken, thing can only get much much worse. Sadly, guess i was right about any potential relegation virtually killing the club
 
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Had a look at those figures and they're horribly watertight... terrible stuff. Hope you can find an investor, CPFC was in this situation the other year, thank god we got investors to stop us folding.
Thing is fella, we've been in the same situation for years, looking for investment. But nothing ever comes of it, Kenwright seriously needs to wake the **** up.
 
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Im waiting for a Sugar Daddy to buy the club
We need a Arabian Billionaire with Tons of Money and nowhere to spend it
an Russian is good too :D
That's not what we need at all, we simply need a stable, solid backing.
 
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That's not what we need at all, we simply need a stable, solid backing.
I was joking we just need to get out of debt we never needed money to win things and we dont need now
 
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Well, not much more I can say really, thats not already been said. And to be honest, I don't know what to say.
 
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