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Too much West End not enough Park End?
Just why are increasing numbers of Evertonians becoming disenchanted with Bill Kenwright’s chairmanship?
Whilst some still believe in the media portrayal of a traditionally owned, well run club that has avoided the debt trap; others are realising that this image is perhaps just an allusion, based on nothing but spin and press manipulation and that Everton actually isn’t the bastion of fiscal prudence we’re led to believe but is a club facing the very real possibility of an extremely serious crisis, in the near future, due to the inability of their board to address difficult commercial issues.
For Evertonians it appeared to be a match made in heaven when in 1999 Kenwright, a locally born, successful West End theatre impresario, but most importantly, a true blue, one of their own, saved the club from the evil clutches of the devils spawn himself, Peter Johnson. Johnson, also locally born and a very successful businessman, was unfortunate to have a fatal and unforgivable flaw, he supported Liverpool!
Prior to Kenwright’s reign the business had a net worth of £10m, total debt of £20m and a positive balance sheet of £18m. Twelve years later, largely unreported by the media, things couldn’t be more different; the net worth of the business is now minus £75m, total debt has risen to £85m and the balance sheet is now minus £30m due to most of the assets being disposed of; yet, incredibly, this financial performance isn’t the worst aspect of Kenwright’s reign.
Also unreported in the press, fans and shareholders of Everton have had to endure many false promises, ineptitude and deception, arguably the worst involving a second proposal to relocate the club to a new stadium on a retail park.
Kenwright’s board promised a world class stadium that was effectively free, would deliver £10m to the manager every year and would be built with the aid of a £52m subsidy from the developers; unfortunately none of this was true.
In reality the stadium was a cheap championship grade construction which, ludicrously dependent on being filled past capacity, was only capable of delivering £6m in total to the club and, worst of all, it wasn’t going to be built with a £52m subsidy; Everton were paying for the lot!!
Kenwright, advised by others, disgracefully and impotently stood by as the club he professed to love was sold down the river for a dodgy property deal involving retail magnets and the most notoriously corrupt council in Merseyside who were happy to see their own planning policies exceeded by over 400%.
Thankfully the Government saw through what Liverpool Council had described as a con. At least on the pitch things were much better, but this was despite the board not because of it, and once again it was those fans opposed to Destination Kirkby that exposed the ticking time bomb that was masquerading as the business strategy adopted by Everton’s board.
During the Government inquiry into Kirkby, Everton’s CEO, Robert Elstone, was publicly cross-examined by the fans who challenged the club’s desire for the former landfill site. Had the directors invested a single penny in Everton? No, was the answer given by the CEO. Wasn’t the current business plan, heavily dependent on the sale of assets, unsustainable and wouldn’t it fail and lead to the club being overwhelmed by debt which would manifest itself through the club being unable to provide funds to the manager? The CEO agreed that the business model was unsustainable but stated that they wouldn’t allow the club to become overwhelmed by debt as they had a team of experts employed to prevent this.
A read of this director’s report confirms that, two years later, those fans fears have been realised. Proceeds from the sale of the remaining £8m asset, Bellefield, went straight to the bank as did the proceeds from the sale of Steven Pienaar and James Vaughan. David Moyes has been unable to buy a player for almost two years and fans of the fourth most successful club in English football have finally had enough.
The latest apparent failure, concerning a proposed commercial development on Goodison’s Park End, follows an all too predictably farcical path, as can be seen here where the masters of spin can’t even get their stories straight. Since then there’s been silence and fans fear that the current board can’t be trusted to not only solve the commercial dilemma but, probably more importantly, find competent new owners to take the club forward; I fear that they’re right, again!
Colin Fitzpatrick
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Colin,
Care to explain your assertion that the club is in fact 85 million in debt, despite the official club accounts citing 45m?
Thanks in advance.
Net debt?
Have the PC´s been safely moved over to Everton place yet??
Paul, it does say total debt, Billy’s right your figure is just the net debt. I think it’s been used as it’s part of the calculation for net worth. The explanatory link doesn’t appear to work, admin?
Er…I was taking the mick. You know, like net spend works in the kopites logic to make them look better, net debt works against us to make things look worse.
Great site lads!!1
Of course he uses total debt instead of net debt. It’s a bigger number.
In other news, Arteta actually commanded a transfer fee of £40m when you take in to account fee, wages, the cost of his kits and boots, etc.
Cheap, cheap number manipulation.
sorry Billy I don’t follow you, how does net debt makes us look worse? also, do we not owe £85m or not? If we only owe £45m then yes I agree he is wrong but if we do then aren’t you guilty of this cheap cheap number manipulation, how do you calculate net debt and total debt and net worth, is the answer in the link that doesn’t work?
We bought Vellios and Gueye in the past year, and also bought in the summer of o9 so your statement on players is incorrect and also ignores the various players contracts that got extended and the costs that are associated with them
Alex the club haven’t bought a first team player for two years, as in paid a transfer fee.
So both Gueye and Vellios playing in the 1st team was just a figment of my imagination?
And the players we bought from the sale of Lescott two years ago?
Seems to agree with Andy Hunter’s article in today’s Guardian, http://www.guardian.co.uk/football/blog/2011/aug/03/everton-premier-league-previews
Nit picking the odd figure doesn’t change from the thrust of what the writer is saying, basically we’ve been fucked and we will continue to be fucked until something changes at the top.In my book debt is debt. The real worrying thing is this net worth figure, maybe this is why nobody will buy us?
The reason no one will buy is is the amount of money that would need to be invested isnt worth the risk.
Its long term investment at high risk where there will be better options out there to invest in instead
Unfortunatley we need to be a billionares plaything
No, Alex, but they weren’t put straight in, neither of them are experienced players.
Alex: The club isn’t for sale, so lets not start that one.
‘fans fear…’ shouldn’t that be ‘some fans fear….’ ? You don’t speak for me in any way shape or form, neither do Blue Union (or the inept bunch of fools that call themselves a ‘board’).
Stop using absolutes unless you can prove you speak for everyone.
Me? I prefer to get behind the players on the pitch – a rare thing around here it seems, but all I see is two sets of spin and hyperbole and not one set of decent solutions from either BK & the board or BU.
So the club is up to its neck in debt yet isnt for sale, yeah makes total sense that
are we in this much debt or not?
BD: Thats a rather contemptible thing to say and rather ironic when your asking Colin not to use absolutes.
When are those who continue to see no wrong in Bills ways going to wake up? The bottom line is if ANY CEO in ANY business in any industry led their company to as many failures as Everton have been, the fact of the matter is he would be out on his ear-8 years ago! WAKE UP FFS! I have no issue with Bill personally, but really he cannot be allowed to continue driving this rudderless ship. We need a direction, a vision, transparency and most importantly unity of the fans. One thing nobody seems to mention is how under the current board, I have never known our fanbase to be so split. His corrosive “leadership” has torn this to shreds.
I wish this group would employ somebody to write these articles that can actually spell and has a basic grasp on English grammar. It is an embarrassment and it is exactly this type of unprofessional attitude that is holding the group back.
agree totally with daniel mullally,his ineptitude in running our club,from putting his mates on the board both of whom have no interest in investing in everton football club , so why are they there,the shambolic way he tried to uproot our famous club out of liverpool into kirby to be plonked next to a supermarket for “the deal of the century”,to “no plan b” and the frankly shambolic way we let the kings dock slip through our hands is unforgiveable”the money is ringfenced”, throw in dan gosling and 2 years since we paid a transfer fee and u have his ringing endorsement,so blue or not , its time for change,KENWRIGHT OUT
Peter, it’s the content that counts and I think Colin is very well known for being factually correct. Care to elucidate, hope that spelling is correct, on what spelling or grammar alters the overall message? I think it explains what many are thinking, or are you just attempting to DEFLECT DEFLECT DEFLECT because you can’t argue with these people. Isn’t this the keioc guy?
This bungling shithouse Kenwright must be removed by any means possible.
He is killing our club.
David – come up with any realistic solutions yet to solve the problems (other than BK out)?
Thought not……
BD – come up with any realistic solutions yet to solve the huge financial problem your hero Bill Kenwright has got us in?
Thought not………….
Now before i start, i am not in the peoples group or blue union or any other group. But to the fact is that the friction between the fans comes from the people who support him.
All these lines, ‘you don’t represent me’ ‘I support the team’ etc
Noone has ever claimed to represent you as an individual and as for you support the team…..Erm so do I and so do they they! On the pitch and off it are two separate things.
A question I will put to all the blues in the blue camp…
Are you happy with consistently being best of the rest?
Because I’m not. I want to see us win leagues and cups and see Messi etc at Goodison.
Tell me you don’t…under bill that will never happen
We Evertonians need to protest and protest really hard…..even if it means not attending games, i know its very difficult to stop supporting but if we do this for a few games the board must take notice, we have to do whats best for club long term and i will not attend for a few weeks, but that doesnt mean i have turned my back on club. Lets hit the streets and get the banners out.
Kenwright is the cancer in this club.
Get him out and send this prick back to Coranation Street.
Lee – obviously you can’t read. Or refuse to understand what you read. Now, lets take this slowly for you as you’re obviously too simple to understand what’s written:
“a rare thing around here it seems, but all I see is two sets of spin and hyperbole and not one set of decent solutions from either BK & the board or BU.”
Hardly supportive of BK now is it??????
Get a grip, go back to reading Peter & Jane books and leave the understanding to adults.
Talk about massaging the figures to suit your aims
Fair play to these groups for taking a stand, they really need to get real re the finances though. Whilst Im sure mistakes have been made, its clear that Everton have been run far better than other sides, who have far greater debts, or have ever gone into administration following take overs from people, who these groups would no doubt laud as out saviours, following 30 million pounds worth of player spending, before an inevitable descent into financial oblivion.
No football clubs of Everton’s stature are making money at the moment, far better the tight ship we’re on now to weather the storm, than some flash Harrys gambling away, hoping that big wave will never turn up
Ben say you get your way and the current custodians are allowed to run their tight ship and weather the storm for the next ten years where do you imagine that would leave us.Even Robert Elstone acknowledged their plan was not sustainable and Bill Kenwright famously said it is going to get worse and worse.”I can’t go on” was the phrase he used.
Robert Elstone’s proof of evidence to the Public Inquiry states:
12
WHAT IF THE PROJECT FAILS?
12.1 In this section I summarise the implications for the Club if the Project fails.
12.2 Given the severe deficiencies of Goodison Park, the Club would continue its search for an alternative new stadium site. However, given the comprehensive search undertaken over the last 10 years prior to Kirkby, specifically the paucity of viable options identified, the chances of successfully finding a suitable site that fulfils the requirements set out in Section 7 are considered extremely low, certainly in the short to medium term.
12.3 Hence, while the search would continue, we would look to invest in Goodison Park as best we could. For the reasons I set out in Section 7.2 meaningful redevelopment of Goodison Park would not be possible with only marginal improvements to the ground viable. In substance, these “improvements” would enable to Club to at best stand still, hence would be more akin to maintenance spend than facility improvements.
12.4 Maintenance spending would need to increase markedly as the stadium ages further, in order to ensure the Premier League licence and stadium safety certificates are protected.
12.5 While the Club would continue to maximise our matchday and commercial revenues to the extent possible given Goodison Park’s inadequacies, we would almost certainly fall further behind our rivals and indeed face the risk of real significant decreases in some of our
key revenue streams.
12.6 The combination of higher costs and at best stagnant commercial and matchday revenues would place increasing pressure on the sustainable level of player budget (wages and transfers), such that the Club would find it increasingly our difficult to compete with its Premier League rivals to attract and retain the best players.
12.7 The continued erosion of the Club’s financial and on-pitch competitive position would harm performance against the Competitor Clubs I discussed in Section 6, but also against emerging progressive Premier League clubs with the advantage of higher quality facilities and/or benefactor support. Further stadia developments at these Premier League clubs would further exacerbate the situation.
12.8 If this Project fails, the Club’s on-pitch performance is therefore highly unlikely to remain at the current levels, and indeed risks deteriorating significantly.
12.9 A deterioration in on-pitch performance leads in turn to a probable further reduction in total revenue, particularly in valuable broadcasting revenue, which in turn leads to further on-pitch declines – the Club would effectively enter a “vicious circle”.
12.10 Expectations of Premier League fans have been increasing with the increasing level of investment in stadia. These expectations have included factors such as comfort, sightlines and hospitality. All of which Everton fans do not currently enjoy at Goodison Park, in comparison to other Premier League clubs, and will not continue to until the Club are able to provide fans with a new stadium with modern facilities.
12.11 If consent is not granted and this unique opportunity is missed, the Club’s ability to improve facilities, generate additional revenues and secure long term success will be severly impaired.
WHAT PART OF THIS EVIDENCE NOT GIVEN BY A FANS GROUP BUT SUBMITTED AS AN OFFICIAL DOCUMENT BY EVERTON FOOTBALL CLUB’S CEO GIVES YOU THE CONFIDENCE IN THEM TO FEEL THEY WILL WEATHER THE STORM.
Then there is this extract taken from Colin Fitz’s Breaking Down The Barriers article:
Enquiring if the business plan, based on asset utilisation, was sustainable, Robert answered that it wasn’t; my suggestion that it was in fact inherently unsustainable, that the loans would overwhelm the club’s ability to provide the manager with funds, was answered with “We have a highly qualified finance team and a good relationship with the bank. That wouldn’t be allowed to happen.” But this scenario has happened.
YOU BEN HAVE PROVIDED NO EVIDENCE NOR ARE YOU ABLE TO IN ORDER TO BACK UP YOUR OWN VIEWS.LIKE OTHERS ON HERE YOU ARE AN EMPTY VESSEL AND LIKE BILL WOULD BE FUCKING USELESS IN A STORM.WE DON’T EXPECT A SHEIK OR AN ABRAMOVICH BEN JUST SOMEBODY WHO IS NOT FUCKING USELESS.
So we have £85m total debt and £45m Net debt. Sounds suspicious to me. Keeping it simple:
Net debt=Total debt – (Cash + Cash Equivalents)
So Everton have a massive £40m in cash hiding somewhere??? I wish.
Another empty vessel
The shows over Bill. Now fuck off
@Andy
“YOU BEN HAVE PROVIDED NO EVIDENCE NOR ARE YOU ABLE TO IN ORDER TO BACK UP YOUR OWN VIEWS.LIKE OTHERS ON HERE YOU ARE AN EMPTY VESSEL AND LIKE BILL WOULD BE FUCKING USELESS IN A STORM.WE DON’T EXPECT A SHEIK OR AN ABRAMOVICH BEN JUST SOMEBODY WHO IS NOT FUCKING USELESS.”
Unfortunately, I think you’ll find that anyone with a clue will steer well clear, as there is currently no money whatsoever to be made at a mid tier premier league football club, so why would anyone want to get involved?
We’re stuck with what we’ve got and whilst its not ideal, the fact we’re not sinking faster than a Leeds/ Portsmouthesque stone is a good thing in my eyes
You can bitch and moan all you like but who is going to buy into a loss making operation, with no obvious light of it making any money in the near future?!
Our only hope is a free (shared no doubt) stadium off the council, this isn’t going to happen in the current economic climate and no doubt SOS, KEIOC or whatever movement is around at the time will no doubt bitch and moan about having to sit in a purple seat and share with them lot.
If you borrow £45m from various sources with a promise to repay that debt over varying amounts of time ie from 6 months to 25 years you do not end up repaying only £45m . Interest payments will nearly double the amount repaid .. Also if you repay that loan by borrowing from another source in a shorter period than first agreed then there will be penalty clauses added meaning you will still repay more than you first borrowed .That’s one reason why a nett debt of £45m is far less than you actually owe
I love the way that a load of plasterers from Speke who can barely spell are suddenly experts on the fine points of accounting with respect to £multi-million concerns in the sports industry.
BD- Stop dodging the question…………how does Bill Kenwright get us out of this massive mess his clueless,inept Chairmanship has got us in?
Ben, care to explain why Bernie Eccleston may be on the verge of selling his 69% shareholding in QPR for £100m using your analogy they aren’t even a mid tier premier league club yet but have attracted a buyer, so who is it without a clue?
Lee – stop dodging the question – how does Blue Union or whoever else get us out of the financial mess the clueless inept board have got us in?
What you fail to see is they are both the same thing – full of hot air and hyperbole but nothing to offer. Why don’t I go shouting about it all? Because I don’t have the answer – so I’m not going to stick my chest out and say ‘Kenwright Out’ until I see anyone else that has a better, more practical idea of how to run this club we all love.
The board have no manifesto other than to avoid the issues and keep quiet hoping everything goes away and Moyes can turn into Jesus F*g Christ and perform more miracles.
As for Blue Union or whatever – it’s all ‘KENWRIGHT OUT!!’ and then….err…………………err……….err……….
You see my point lad ? Don’t open your mouth shouting the odds unless you’ve got odds that are better than the current ones on offer.
For the sake of EFC I hope BU or someone else comes along and HAS the answers. Those answers being workable and practical and move us forward.
Don’t mistake not agreeing with you lot as accepting what the current lot are doing. I want nothing more than EFC to be successful and solvent and well run and transparent with it’s fans – but so far no one who is shouting the odds has offered anything at all in the way of an alternative.
Ben, you make a fair observation tbh, “there is currently no money whatsoever to be made at a mid-tier premier league football club” I can’t disagree, but this isn’t the point of this piece. The figures show that if we continue to follow these policies, the only policies this current board is capable of producing, ten years has shown this, it is inevitable that a crisis will occur on the pitch.
The same fans that warned Kirkby wouldn’t happen, and were ignored, and warned about this current crisis happening, and were ignored again, are once again concerned that if you extrapolate these figures the consequence will be far from positive, they will be negative; assessing the performance using the standard metrics, turnover, staff costs, EBITDA, cash flows and capital expenditure [cough], will lead any normal person to the conclusion that, ironically, the people you fear, those that brought down Birmingham, Portsmouth, Leeds etc are already here due to their inability to address the stadium and commercial issues at the club.
Nobody I know wants the club to spend money they haven’t got or particularly dreams of being City or Chelsea, most just want a board with a plan that can support the manager with funds not words.
Just to address those others who feel that nitpicking the odd figure is the basis of ignoring the elephant in the room, the debt figure I used is indeed the total debt figure not the smaller net debt. It’s an accepted metric and furthermore I’m at least comparing it with the identical figure from the past, the disparity would be the same no matter what figures are used; the fact is we’re in a worse position now than we were over a decade ago. It certainly would be disingenuous to interchange two figures, cost and value for example; now that would be terrible!
The fact is you can fiddle around with figures all day long, I don’t actually completely agree with how other companies have assessed Everton’s position but, ultimately, the message is the same, continuing along the route we’re taking will inevitably lead to real problems.
Obviously no lover of LFC but in their accounts they always outline their strategy, it’s “to deliver the plans for growth and football success. The immediate elements are to continue to strengthen the football squad and to implement plans for a new stadium.” Our strategy on the other hand isn’t stated in our accounts but it was outlined by the chairman the other week, apparently “we’re keeping our fingers crossed.”
Keep supporting the board; like Ian McDonald once said, “you’ll get the club you deserve.” One day you’ll wake up to the fact that the shit has hit the fan because a gang of plasterers from Speke understood what was wrong but the clubs highly paid experts didn’t and all along you were asking the plasterers for a solution whilst ignoring those responsible. Well done.
One day you’ll wake up to the fact that the shit has hit the fan because a gang of plasterers from Speke understood what was wrong but the clubs highly paid experts didn’t and all along you were asking the plasterers for a solution whilst ignoring those responsible. Well done.
——————————————————
But some believe the plasterers have all the answers despite not seeing anything other than them offering a point of view they agree with.
Agreeing with a point of view (either way) will solve nothing. Practical working solutions offered by soemone who has them and is prepared to prove they can impliment them successfuly is what is needed.
Whoever you are please come forward soon…………
So BD, as things stand, your position is those that have exposed what really is going on should remain quiet unless they have a solution?
Easy to shout about things – what did shouting ever do except give people a sore throat Colin?
The loudest mouth doesn’t necessarily have the answers – they’re just the loudest.
What have they exposed? What they believe to be ‘the truth’? A theory which is challenged by another faction who say they’re ‘telling the truth’?
It’s all ‘my d*cks bigger than yours’ and nothing more. Until the person turns up with the real solution it’s all just hit air and crap by BOTH sides.
BD, Personally I’ve never shouted once as it happens. You’re seriously unaware of what they’ve exposed? Fair enough. I believe a government inquiry exposed the truth and confirmed what the fans said all along was correct.I see you’ve ignored my question; you want people, ordinary football fans, to keep quiet about the boards performance, spin and deception that has blighted the club because they don’t have the solution to this problem? Fair enough, it’s a novel opinion I must admit, some would say bizarre for someone posting on a fans forum, but like everyone else you’re entitled to it.
BD – Who is saying the Blue Union has or has not the answers to has to get us out of this huge financial mess the Kenwright and co have got us in?
Notice you’ve started throwing insults around. Backed into a corner and losing are you lad?
I’ll ask you for a thrid time. What’s your suggestions and solutions for how Kenwright and his cronies in the boardroom get us out of this massive financial mess THEY’VE got this club in?
Lee – already answered the question. Do keep up.
‘Losing’? Didn’t realise the problems were a game to win or lose? Nice you see it so superficialy.
Colin – it’s one thing complaining and having a voice etc…it’s another to use it to do anything but complain. I wouldn’t have thought that was so hard to grasp? See, I answered your question already. You seriously think I or anyone else is happy with the financial situation? However if I was going to ‘get up stand up’ then I’d at least have something to say other than ‘He’s a liar!!’ and ‘Kenwright out!’. I’d be offering an alternative that hopefully people would buy in to.
If BU or anyone else comes up with something that I see as a practical and sensible way forward other than just removing Kenwright& his monkeys then I’ll happily back them 100%.
As I said earlier – don’t mistake passivity for agreement with the current regime. But you have to have something to put in place once the old regime is gone, or all you’ve done is for nothing.
“” Snaff
August 4, 2011 at 10:55 am
I love the way that a load of plasterers from Speke who can barely spell are suddenly experts on the fine points of accounting with respect to £multi-million concerns in the sports industry.”"
Just out of interest , I’m not a plasterer but my last employment before I retired was an accounts manager for the UK’s largest credit card company , Prior to that I was part of the team in the accounts department for a P&O company who’s turnover was more than Everton’s . I consider myself able to comment on ‘ multi million pound concerns ‘ … If there are any typos you’ll have to excuse me , my secretary used to correct all my correspondence .
Nobody wants to buy us because we are from the same city as LFC, who are a much bigger, much more famous and much more successful club.
But that’s okay, because with Our Davey and Blue Bill at the helm we are in safe hands. Another top half finish this season would be brilliant, for a club of our size this should be our aim.
IMABITFEM (In Moyesey and Bill I trust For Ever More)
BD, well done you for understanding that the financial situation is dire and will eventually become the disaster being predicted; predicted by the same people who were so wrong over everything they’ve warned about in the past but should have kept quiet.
Your solution still remains quite novel; say nothing and do nothing as you have no solution ergo the masses won’t become informed, save through the usual outlets of the OS and the media, and therefore there won’t develop a groundswell of opinion against the current policies. Are you from North Korea by any chance?
Claiming there’s mindless Kenwright out chanting is an obvious attempt to dumb down the issue. The problems at Goodison are complex, as will be their solution, and understanding these issues is compounded by the veil of secrecy that has descended there during Kenwright’s reign.
It’s unlikely there’s going to be a billionaire solution and, given the track record of the current board, the fear is they’ll sell to an unsuitable owner, just like Moores did across the park.
Your solution remains say nothing; others believe that the simplest and proven solution is often the best solution but the first step to achieving this is discovering the truth concerning what has been going on at Goodison, otherwise, without all the facts, any solution is born to fail. It appears to me that some people are somewhat anxious to avoid people becoming too well informed thereby preventing them asking uncomfortable questions of the board.
Jarty,
Absolutely disgraceful speeling and misuse of apostrophe’s therefore your opinion is null and void; don’t dare darken the doorway of Goodison Park, as you have done for over 40 years, ever again, I know where you sit and I’ll be checking!!!
Johnny Faglet, what the fuck are you on about lad? I smell Redshite.
We’re EVERTON FOOTBALL CLUB FFS, an absolute behemoth in the game and with a history only a handful of clubs in the world can match. We should be winning leagues and European Cups every fucking year, as our glorious history dictates.
In fact, if it hadn’t been for Heysel and those filthy wall pushing cunts we;d undoubtedly be the biggest club in Europe now and people would be asking ‘Liverwho’ instead.
We know our ‘istory and we don’t CARE what the Redshite say, NSNO, 1=20.