Everton and zero money - Updated 17/11/23
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Soldato
Everton are really giving off Leeds mid 00’s vibes right now with them looking like being in some sort of financial death spiral. Though possibly on steroids what with a stadium to pay for as well!!
As much as I find Everton's plight amusing it's now bordering on ridiculous, how have they been able to be run so badly, FFP was supposed to prevent a Leeds situation but it's almost a carbon copy.
I would find relegation amusing however actually collapsing and ceasing to exist less so as they are still entertaining derbies against them and they are still a well supported club so if they were to get well run they could certainly be a very steady decent team
I would find relegation amusing however actually collapsing and ceasing to exist less so as they are still entertaining derbies against them and they are still a well supported club so if they were to get well run they could certainly be a very steady decent team
The obvious response to this is that Everton haven't complied with FFP. They've breached FFP rules for the past 5 seasons however due to it working on a rolling 3 year cycle (4 at the moment because the 2 covid seasons are taken as an average) and clubs accounts not being filed until many months after the end of the season, the **** only hit the fan in the last year or so.
Creating a set of rules and regulations that solves every problem is nigh on impossible. The only way you can remove the risk of what's happened to Everton is by banning any form of debt and owner funding. The moment you do that you'll have any number of supporters claiming it's "not fair" and what's really ****ing mad is that there will be loads of Everton fans claiming this too. As long as a club is relying on outside funding to pay their bills, they're at risk. Many don't believe it or even think about it until it happens but we've now seen multiple examples of clubs being on the brink because of owners that have come in, funding huge spending sprees and then either can't or won't fund those losses in future years.
Soldato
Bad reading for Everton fans, Currently spending £124 for every £100 brought in.
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Soldato
Honestly, why would anyone buy now if they could buy for pence in the pound post administration?
I saw a statement from John Textor the other day. He said he didn't want to wait until the club goes into administration before offering to buy it as that wouldn't be the right thing to do. The thing is he needs to sell his stake in Palace and I can't see that happening before Everton go into admin. It seems like he said that so he can point to the statement when he does offer to buy the club post admin.
I saw a statement from John Textor the other day. He said he didn't want to wait until the club goes into administration before offering to buy it as that wouldn't be the right thing to do. The thing is he needs to sell his stake in Palace and I can't see that happening before Everton go into admin. It seems like he said that so he can point to the statement when he does offer to buy the club post admin.
I dunno, if they go into administration they will get relegated. It might be a long while before they could get back out of the championship. I guess that will be the price vs any offer that anyone will be weighing up. I mean they are going to be selling anyone and everyone they can, so it might be worth waiting for them to go under.
The Everton situation is quite frankly bonkers. Just a couple of months ago, despite there being no real prospect of their takeover going through and with little to no security on their loans, 777 were still lending Everton money. It's absolutely crazy but 777 were pot committed - they've leant Everton so much money with no security meaning they can't afford for Everton to go into administration as they'd lose their trousers.
As Danny says you've also got the relegation issue. Administration makes relegation almost certain, remembering that Everton still face the prospect of a further penalty for their 22/23 PSR breach and potentially one for 23/24 if they don't sell big soon. The risk of relegation would obviously be reflected in the price any buyer would pay so it wouldn't be a major concern for them but it would be for all the lenders who stand to lose a big chunk of their money. Which leads to the question, who exactly pushes Everton into administration? It's not in any of the lenders interests for Everton to go into administration, supported by the fact MSP have extended deadlines on their loans (and not taken the option of taking control of the club) and 777 throwing good money after bad at Everton. Now obviously a point may come where there's no option but best guess is terms of these loans get renegotiated - Moshiri & 777 take a big hit on what they're owed, other lenders less so but terms are extended, Everton sell big this summer to raise the funds needed to complete the stadium and Everton have breathing space to find a buyer.
Caporegime
I think even if Everton did manage to stay solvent they are going to be selling all their players left right and centre this summer and basically playing kids the next. All the strong teams coming back up from the Championship it is going to be an interesting season as it must have felt quite positive from a results point being an Everton fan this season.
Following on from my post above, it's being widely reported that a couple of Everton's creditors are now in negotiations to buy the club from Moshiri. It is truly bonkers that Everton are in so much debt that it's cheaper for its creditors to buy the club than to allow the club to go into administration and lose x% of the money they lent them.
It's a massive mess. Everton borrowed around £200m from 777 (at approx 10% pa interest) but 777 themselves borrowed the money from elsewhere. With 777 essentially folding that debt has now been taken on by 777's main creditor A-Cap. It's being reported that Friedkin (and other interested parties) wanted to settle that debt at a massive discount (as much as 75% off the original debt) however, despite 777's loans to Everton having very little security, A-Cap want to be paid in full. And if that wasn't bad enough, there's also legal action from another of 777's creditors claiming the Everton debt (and other 777 assets) should now be controlled by them, preventing that debt being settled at a discounted rate even if they wanted to. It's alleged and seemingly accepted that 777 put up the same assets (and non existent assets) as security on multiple loans leading to this dispute.
So you've got potential buyers not willing to take on 100% of the money Everton owe, creditors not willing to accept a discount on the money they're owed and legal action preventing them from doing a deal even if they changed their mind and were willing to accept a discount.
Caporegime
I just saw on the news that he wrote off £450mil of loans he lent the club.
He is mad afterall.
Caporegime
Was he really that bad? He built a whole new stadium and invested hundreds of millions into the player squad. His heart was in the right place he just employed the wrong people to execute it.
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Yeh, the new stadium is fantastic and I'm grateful for that, but everything else to do with the club is a total dumpster fire. For the accountant of a billionaire, he made some really stupid financial decisions. He crashed us into PSR and points deductions with wasteful transfers and appointments, wanting to play at football manager and listening to his agent friend rather than getting in people who knew what they were doing. Then he very nearly sold us to a bunch of scammers and crooks which would probably have ended the club.
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Caporegime
It was a risk. When he took over Everton were in and around the top 6. They dumped money into the club on the hope that Everton would break into the top 4/6 and be European contenders and get funding that way. No different to championship clubs leveraging debt to break it into the Premier League failing then being up creek without a paddle. Everton was just doing it at the pointy end of the table and it went horribly wrong. He got Ancelotti so he clearly had ambition. He put close to 750 million into the club. Unlike say the Glazers who have been nothing but leeches.
Was it ran horribly? Absolutely but you cannot deny that he wanted good.
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Commissario
He wanted good, but that guy couldn't organise a wet dream.