The Blue Half of Merseyside
Review Part4: Finances
Welcome,
The most important part of the game is the club’s finances without a healthy bank balance the club will struggle to survive and get players. That is why is important to control the spending and increase the income generated.
Finance Summary
Over 2years we have gone from losing money to making money. We also have fewer clauses for transfers left that we owe other clubs.
Expenditure
The Board are spending £4.9m on an extra 3,593 seats to bring Goodison Park to 50,000 seats also they are spending £2.5m on improving our training facilities after they were downgrade for the 2nd year running. We have managed to control much of the outgoings by releasing or selling players on high wages and how much we spend on buying players. (There should be an option to allow us to do a “Starbucks” with our tax).
Income
Big increases in gate receipts, season ticket sales, TV revenue and prize money due to winning every competition in we were in. Next season will see more increases in ticket receipts and season ticket sales also merchandising and match day income will increase due the expansion of Goodison Park. In a couple of years we could see increases in our sponsorship deals which due to end in 2014 and 2015.
Budget for 2013/14 season have been set.
£34.61m for transfers is a lot considering the position I was in at the start of the 2011/12 season with no money and the club haemorrhaging money. I will now get 100% of transfer fees received to be used in the transfer budget. I have around £300k a week left for wages for which I will be offering players in their final year of their contract a new contract.
Transfer spend v League Position
| League Pos. | Club | Spent (m) |
| 1 | Everton | £ 8.75 |
| 2 | Arsenal | £ 24.50 |
| 3 | Tottenham Hotspur | £ 81.00 |
| 4 | Manchester United | £ 23.50 |
| 5 | Manchester City | £ 82.50 |
| 6 | Liverpool | £ 30.75 |
| 7 | Chelsea | £ 62.00 |
| 8 | Fulham | £ 37.50 |
| 9 | Swansea | £ 22.50 |
| 10 | Stoke City | £ 19.55 |
| 11 | West Bromwich Albion | £ 16.25 |
| 12 | Norwich City | £ 13.60 |
| 13 | Aston Villa | £ 19.05 |
| 14 | Newcastle United | £ 4.10 |
| 15 | Wolverhampton Wonderers | £ 27.40 |
| 16 | Sunderland | £ 6.25 |
| 17 | Bolton Wonderers | £ 12.60 |
| 18 | Birmingham City | £ 15.00 |
| 19 | Blackpool | £ 33.00 |
| 20 | Reading | £ 5.00 |
It is not how much you spend it is who sign and how they impact your team. Manchester City and Chelsea between them £140m to get Europa League football for the 2013/14 season where has Tottenham Hotspur spent £81m to get Champions League from being in the Europa League during 2012/13 season. Blackpool are now burden with a £15m striker on high wages in the Championship which will cause them some financial hardship. If I had not got the 10players for nothing then my transfer spend would have been £40m which the club could not afford back in the summer of 2012.
Until next time………
| Print article | This entry was posted by fmfan12 on 17/12/2012 at 22:04, and is filed under Everton, fm. Follow any responses to this post through RSS 2.0. Both comments and pings are currently closed. |
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about 5 months ago
Glad to see you have managed your finances so well. Doing so will undoubtedly help you in the long run.
And doing a starbucks shouldn’t be an option – that’s robbing people of the services they require (doctors, teachers etc).
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about 5 months ago
Thanks
Bit tongue in cheek about the starbucks thing. it is the 4th highest expenditure item.
Fellaini is the only high wage earner on £93k a week but will be offering him contract minus the 15% increase each year. I have about £300k a week left on wages with a budget of £900k a week. The wages are about £1m down from last season which is good. I think it will be down again this season. No else in the team has the % increase each year their contract.
I have clauses in young players contracts where after so many league games (20 or 30) their wages go to x amount, neither double or about £1k higher than what they are on.
One thing I have noticed money generated from matchdays (merchindising, gate receipts and match day income) generate the money to pay the wages which means the club are living within their means with money being generated from other sources to cover other costs hence the board spending £5m to bring the ground to 50,000.
I see finance just as important as the tatical side of the game maybe even greater.
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