Topic: Everton - The 777 Unflushables

[No666]

According to another report, it's not just that they're asking for an extension of the deadline to repay the 160m but a 'more manageable' repayment plan, which sounds as if they want to pay it off in instalments.

[DonkeyWan]

Have a little respect?

Always

[DonkeyWan]

This is interesting, though I wish your one would shut up and stop interrupting. Question is, if MSP takeover, surely they also take on all debt as well?
https://www.bbc.co.uk/sounds/play/p0hq1b46

[TepidT2O]

Always

Wild

[rafathegaffa83]

'Everton FC bidder 777 seeks extra time amid race for funding':-

When this thing inevitably goes awry, I don't want to see pieces from major journalists lamenting poor Everton and blaming the PL. This entire story is a massive open goal for any journalist worth that salt. Look at how well Josimar have taken to it. And yet few of the British media want to report on it with any sort of criticism. Probably because reporting on this - rather than say transfer bullshit -  won't see you binned from the pre-match buffet.

[Bennett]

Innocent victims, corrupt PL etc.

https://twitter.com/slbsn/status/1778319255379017769

The story of a £100m training ground sponsor you've never heard of

In latest Everton case, there was some discussion of the £20m per annum USM Finch Farm training ground sponsorship deal. USM is Usmanov's business. £20m pa just for a training ground sponsorship is unheard of even for leading teams/sports. It is double what Everton or Inter Milan even get for their front of shirt.

Since 2017, Everton's USM Finch Farm deal has been worth at least £60m (possibly £68m to the end of FY22 before the sanctions).

It started as a £6m pa deal, became a £12m pa in 2019 and appears to have been upgraded to £20m pa before the new Associated Party Rules were introduced in December 2021 (more later).

Before 2020, it was disclosed as a related party transaction in Everton's accounts. Then it disappeared from the back end. Not sure why.

On top of that, USM paid £30m for a non-refundable naming rights option for the new stadium in FY20. Pure profit. All of this is public and in Everton's audited accounts.

This means that in the first breach period, the breach was after including £66m to £74m of USM sponsor revenue. The PL never sought to disallow or adjust any of those amounts.

The latest IC decision tells us that sanctions meant that for FY23, Everton weren't able to recognise any of the £20m training ground revenue (fortunately the FY22 amounts had all been paid and recognised before sanctions in FY22).

It is this £20m that Everton claimed, and received some mitigation for (between 0.1 and 0.9 of a point).

But there was no mention of the main reason it couldn't be replaced by anything close.

The PL had changed the rules in Dec 2021 bringing in the Associated Party Rules - the Newcastle amendments (https://theathletic.com/3686629/2021/12/22/premier-league-sponsorship-deals-over-1m-will-have-to-be-verified-after-rule-change/). 

Those changes would probably cap a training ground sponsorship deal for a mid-table team at a tenth to a fifth of the £20m USM deal.

This real reason was not an easy argument for the PL or Everton to make without highlighting the excessive nature of the £20m pa Finch Farm deal. So nobody did.

But it certainly means that any mitigation for USM was really quite generous. Everton will and should focus their appeal elsewhere...

[12C]

For all the sound and fury about being picked on, the case seems to be that Everton were treated very leniently by the PL.
The £228m allowed for covid losses was crazy.
And simply posting the table from Swiss ramble showing the losses of all other clubs tends to shut down even the likes of Andy Burnham. Because anyone with an iota of sense knows that their match day revenue was the  largest loss in that period, which is a fraction of the amount Arsenal or United lost.

[DonkeyWan]

For all the sound and fury about being picked on, the case seems to be that Everton were treated very leniently by the PL.
The £228m allowed for covid losses was crazy.
And simply posting the table from Swiss ramble showing the losses of all other clubs tends to shut down even the likes of Andy Burnham. Because anyone with an iota of sense knows that their match day revenue was the  largest loss in that period, which is a fraction of the amount Arsenal or United lost.

Even the allegations about persecution make no sense, the biggest complaint I have heard is that other clubs have also committed crimes, why are they not being punished? They are, just not on the same timeline. A bit like shouting out that your friend is also guilty as you are dragged to the gallows.

[David in Edinburgh]

Maybe they should just come out and admit they are a bunch of bitter and jealous bastards. You never know the EPL might show them leniency for being honest for once. 

[Son of Spion]

Maybe they should just come out and admit they are a bunch of bitter and jealous bastards. You never know the EPL might show them leniency for being honest for once. 

If only they had those levels of self-awareness.

[Peabee]

For all the sound and fury about being picked on, the case seems to be that Everton were treated very leniently by the PL.
The £228m allowed for covid losses was crazy.
And simply posting the table from Swiss ramble showing the losses of all other clubs tends to shut down even the likes of Andy Burnham. Because anyone with an iota of sense knows that their match day revenue was the  largest loss in that period, which is a fraction of the amount Arsenal or United lost.

It's quite apt that Everton claimed "ifithadnthavebeenfor..." losses.

[Son of Spion]

Never, in the history of English football, has a fanbase complained so wildly about getting let off so lightly. 

[Anthony]

Innocent victims, corrupt PL etc.

https://twitter.com/slbsn/status/1778319255379017769

That is surprisingly aware from a fan with AD115 on their profile screen...

[Black Bull Nova]

That is surprisingly aware from a fan with AD115 on their profile screen...

Sponsoring a training ground or, as it is sometimes called, money laundering

[12C]

Sponsoring a training ground or, as it is sometimes called, money laundering

Unless Uncle Uzzy was behind the payday loans and was getting his money back as part of the interest payments,  it is difficult to see how he benefitted from those sponsorships in terms of money laundering

[Garlicbread]

https://twitter.com/iPaperSport/status/1778449176172355667


Everton are now on "life support", insiders say as 777 Partners struggle to complete their takeover in time

@MsiDouglas

[jacobs chains]

I think if the 777 deal crashes and MSP end up taking over the club, Everton will end up in a better position. They will never own BMD but at least they will still exist in a couple of years time.

[newterp]

https://twitter.com/iPaperSport/status/1778449176172355667


Everton are now on "life support", insiders say as 777 Partners struggle to complete their takeover in time

@MsiDouglas

Nothing to see here.

(I mean - what is the Premier League doing even considering 777 - let Everton go into admin and build themselves back up - someone will come in for sure and start over)

[4pool]

I think if the 777 deal crashes and MSP end up taking over the club, Everton will end up in a better position. They will never own BMD but at least they will still exist in a couple of years time.

MSP had the chance, before 777 Partners, to get the club. Looked at the books and said no Ta.

They don't want EFC. MSP might just strip the assets to get their money back with interest.

[jacobs chains]

MSP had the chance, before 777 Partners, to get the club. Looked at the books and said no Ta.

They don't want EFC. MSP might just strip the assets to get their money back with interest.

It was funny when Andy Bell, a life long blue, was lending his money and chose to ring fence it as a loan to the stadium vehicle rather than the club. Maybe that's a clue to where he'll want to take his pound of flesh from.

[jacobs chains]

This is horrific and worth reading.

https://www.theguardian.com/football/2024/apr/12/everton-paid-30m-interest-lender-rights-media-funding-links-with-tax-exile-documents-suggest

Everton has paid about £30m in interest charges to an opaque lender associated with a tax exile, corporate records suggest.

The charges appear to have reached about £438,000 a week, according to the troubled Premier League club’s most recent set of accounts, a figure more than three times the reported wages of the Everton and England goalkeeper Jordan Pickford.

However, most of that cash outflow has now been excluded from Everton’s most recent profit and loss account after a controversial change in accounting policy by the club that has allowed it to report lower losses – and which may give rise to a further points deduction by the Premier League.

The change in how the club accounts for debt interest comes amid intense scrutiny of its finances by the Premier League. On Monday, Everton was deducted points for the second time in the season for breaches of profitability and sustainability (PSR) rules.

Sounds possible that the two points deduction was because the Premier League think Everton are due more point for fixing their accounts. Oh dear..

[TepidT2O]

10% interest a year. Probably similar for MSP and possibly even more for 777.  Probably up to around £60m a year in debt repayments.

[TomDcs]

This is horrific and worth reading.

https://www.theguardian.com/football/2024/apr/12/everton-paid-30m-interest-lender-rights-media-funding-links-with-tax-exile-documents-suggest

Sounds possible that the two points deduction was because the Premier League think Everton are due more point for fixing their accounts. Oh dear..

That’s insane.

The absolute irony that all their fans are blaming the league for punishments about how unsustainably their club is being run, while the club is burning down around them. I understand that fans don’t want to get bogged down in all this financial and legal stuff, but you have to wonder what Burnham was doing going into battle in public and leading this whole ‘It’s the establishment out to get Everton’ agenda. If he’s a ‘true blue’ surely he should be more concerned about the state of how the clubs being run than crowing about this shit to score points. Baffling the lot of them.

[jacobs chains]

That’s insane.

The absolute irony that all their fans are blaming the league for punishments about how unsustainably their club is being run, while the club is burning down around them. I understand that fans don’t want to get bogged down in all this financial and legal stuff, but you have to wonder what Burnham was doing going into battle in public and leading this whole ‘It’s the establishment out to get Everton’ agenda. If he’s a ‘true blue’ surely he should be more concerned about the state of how the clubs being run than crowing about this shit to score points. Baffling the lot of them.

Their finances are screwed. If players wages are 90% of their revenue and debt repayments are about 35% of revenue you don't have to be an accountant to spot the problem.

[rafathegaffa83]

Has there been any suggestion of what happens if 777 can't repay the MSP loan by Monday (assuming they don't get an extension)?

They can't even properly fund a women's basketball team they own
https://www.bbc.com/sport/basketball/68789128

[Terry de Niro]

Has there been any suggestion of what happens if 777 can't repay the MSP loan by Monday (assuming they don't get an extension)?

They can't even properly fund a women's basketball team they own
https://www.bbc.com/sport/basketball/68789128

Worrying times ™

[DelTrotter]

Innocent victims, corrupt PL etc.

https://twitter.com/slbsn/status/1778319255379017769

Yeah it's pretty disgusting these have managed to get so much sympathy, if this was us I'd imagine there'd be protests from every other fanbase to get us kicked out of English football completely.

Burnham has made a complete show of himself backing these.

[Eeyore]

Yeah it's pretty disgusting these have managed to get so much sympathy, if this was us I'd imagine there'd be protests from every other fanbase to get us kicked out of English football completely.

Burnham has made a complete show of himself backing these.

Burnham is a career politician who just panders to his electorate.

[Lisan Al Gaib]

https://twitter.com/iPaperSport/status/1778449176172355667


Everton are now on "life support", insiders say as 777 Partners struggle to complete their takeover in time

@MsiDouglas

Honestly I'm amazed they've managed to last this long without going into administration! Genuinely no idea how they haven't yet.

[Red Beret]

Everton are a black hole for money. Even if 777 are able to beg, borrow and steal enough money to complete a takeover, then what?

Everton still have a £20m per month hole in their finances, at least. Buying the club doesn't change that. The transfer window doesn't open for another 10 weeks or so. They need to cut costs, hard and fast if they want to stand half a chance of remaining solvent.

And now we hear they could face a third points deduction for their "creative accounting"?? Why has the Premier League allowed this shower to set the media narrative of poor little Everton being picked on?

[rob1966]

Burnham is a career politician who just panders to his electorate.

?  His Electorate are Mancs. (Or people like me who are trying to improve their gene pool)

[DonkeyWan]

Honestly I'm amazed they've managed to last this long without going into administration! Genuinely no idea how they haven't yet.

They are currently borrowing to pay off their interest on borrowing. There are suggestions they are £500m in debt, but that doesn't include the 'equity' loaned to them by Moshiri. The only way they can saved now is if a  new owner comes in and wipes out 1/2 a billion in debt and Moshirio accepts a pittance for his share of the club and they get another £100m or so to finish the stadium.

[Dougle]

They are currently borrowing to pay off their interest on borrowing. There are suggestions they are £500m in debt, but that doesn't include the 'equity' loaned to them by Moshiri. The only way they can saved now is if a  new owner comes in and wipes out 1/2 a billion in debt and Moshirio accepts a pittance for his share of the club and they get another £100m or so to finish the stadium.

I know this is a simplistic question but, as an investor, is it worth anyone's money ? Is owning Everton (possibly relegated) and a new stadium a good deal for 600M quid ? I'd get it (maybe) if they managed to stay up. You could just focus on getting the house in order (sell saleable assets, buy cheap, cut costs etc etc and hope you stay up for a couple of seasons). Or has that version of reality sailed a long time ago ?

[Irishred1]

Sounds like the shite need a new Boo(keeper)

[DonkeyWan]

I wouldn't be able to say, but an educated guess would say, unlikely. The fact they are struggling to get investment would suggest not. Generally clubs don't make profit, so dividends would be minimal.  The value would be in getting a PL club on the cheap (FSG got LFC for a comparative pittance and would likely sell it for £3billion if they put it up for sale tomorrow). The problem for Everton is there entire existence is dependent on Sky money. Strip that out and they make £56m revenue a year.  Staff costs last year were nearly 3 times that (£159m). TV  money is about 5-10 million per club in the championship, so a huge drop. So, if relegation came along they would need to offload most of their playing staff.

So, an investor would have to consider

1. A team that has been hovering over relegation for 3 seasons running
2. Has piss poor revenue streams
3. Is dependent on TV money
4. Has an expensive and ineffective squad
5. A 'relegation specialist' in charge
6. Massive debts
7. An incomplete stadium
8. Is embroiled with dubious lenders
9. Is in direct competition with a behemoth of the game
10. Is awaiting more point deductions next season
11. Has failed FFP (P&S) 3 seasons running and looking good for a 4th.
12. Hasn't made a profit in 8 years

It would be a lousy investor who looked at that and thought 'bargain!'. It just requires one bad season to completely wipe the value of the club out and incur massive, massive, loses.

[lfc_col]

Why has the Premier League allowed this shower to set the media narrative of poor little Everton being picked on?

Why are they allowing them to carry on as normal when its clear there in deep trouble its bizarre

[Red Beret]

Why are they allowing them to carry on as normal when its clear there in deep trouble its bizarre

Well I guess the PL can't force them into administration

[Black Bull Nova]

Why are they allowing them to carry on as normal when its clear there in deep trouble its bizarre

Maybe give them a points deduction to make them sit up and notice?

[Samie]

They are how we put it in the business "Royally Fucked".

[Sheer Magnetism]

They're absolutely prime to be snapped up by sportswashers. Big name, new stadium on the way, and if they've already been relegated they'll treat virtually anyone solvent as saviours. Plus, let's be honest, it wouldn't be hard to run the club more competently and sustainably than Moshiri and Kenwright.