Everton Losses Hit £10m In 2006

[KillaGTiR]

Everton Football Club made a £10m loss in 2005-6, compared with a profit of more than £23m the previous year before.

 

But the club also recorded its second-best turnover in history, despite the cost of paying its top players rising by 20%.

 

It was also a bumper year for chief executive Keith Wyness who thanks to bonuses took home £466,000, more than doubling the £177,000 of the year before.

 

The revelations come in the club's annual report and accounts, which will be discussed at its shareholders' AGM at Goodison on Monday.

 

 

 

 

 

 

Last year, Everton's record-breaking £60m turnover propelled it into the top 20 of football's "rich list" for the first time.

 

 

But this year's drop may mean the club doesn't make it into the Deloitte money league for a second year running.

 

 

The loss has largely been put down to Everton slipping to 11th place in the Premier League, the subsequent loss of television income, and the fact 2005's figures included the hugely profitable sale of Wayne Rooney to Manchester United.

 

 

In his annual statement, chairman Bill Kenwright said the fact turnover had only fallen by £1.9m represented a "very strong result".

 

 

Last year, the club paid its players and staff £37m, compared with £30.8m in 2004-5, representing a 20% increase in the club's wage bill.

 

 

That stark rise means wages now swallow up 64% of the club's turnover, compared with just 51% last season.

 

 

The departure of big earners such as former talisman Duncan Ferguson will help address the wages issue in next year's books but other big earners, like striker Andrew Johnson, have already arrived.

 

 

The club's report, written by its directors, said the increase was necessary to support the investment in the playing squad during the year.

 

 

The directors continued: "We will, of course, continue to monitor this trend closely and take appropriate action as required."

[GoldfishMemory]

It was also a bumper year for chief executive Keith Wyness who thanks to bonuses took home £466,000, more than doubling the £177,000 of the year before.

 

Isnt his job to increase turnover?

 

If so how can turnover decrease but he can be paid bonus payments of £300,000?

[MikeO]

This may be a completely stupid point...don't really understand economics but..

 

If last years turnover was £60m including the Rooney money and this years turnover is £58m without it then probably the trend is toward an increase...or am I reading something wrong?

Edited December 6, 2006 by mikeo

[Guest fozzie]

Wow i wish i could do Wyness his job..the club plunges back into the red and he takes home a bumper pay rise..but then again he must offset some of that for tissues for wpiing BK's arse..he seem to spend an awful lot of time up it

[Ola]

Wow i wish i could do Wyness his job..the club plunges back into the red and he takes home a bumper pay rise..but then again he must offset some of that for tissues for wpiing BK's arse..he seem to spend an awful lot of time up it

no hloes bared a foz

[Louis]

mikeo - You have it in a nutshell. The club are still improving!

 

Bare in mind this season we have signed Lescott and Johnson for big money. If we didn't sign any new players we would have made a profit.

[L_Blue]

Plus on top of that I agree Wyness is a dick but last year we had a load of income from the Rooney sale that we didn't have last year plus wages have gone up, to keep players like Arteta and Cahill we have to offer them bigger salaries. I think it sucks tbh you signed a contract so accept the wages you are on and if you are performing well at the end of that contract we will offer you a better one. It's not like hey Andy Van you have done f*** all so we are gonna lower your wages until you actually play some games. But my point is unfortunately if your players perform well you have to offer them more money or they f*** off so the players we had last year are often costing us more this year.

[Louis]

I think your being unfair on Wyness. The reason he has cost 400k is because he has steered the club towards operating profits.

 

The season before he came in we made a lost of aproximately 4m on the business side only, he is paid a tenth of that and the club has just announced a profit of 3.5million. Thats a 7.5million improvement thanks to Wyness alone.

[GoldfishMemory]

I could make that difference for less than half the wages!

 

His basic is 177,000 or sumat like that.

[Guest fozzie]

If the playing staff where paid by the hour they would owe us

 

mikeo - You have it in a nutshell. The club are still improving!

 

Bare in mind this season we have signed Lescott and Johnson for big money. If we didn't sign any new players we would have made a profit.

I'll disagree with you there boss man..both players where signed on the drip..buy now pay later..DFS deals..buy one get VDM free..

[Willo]

I said last year when we made the 24 million pound profit that we wouldnt see anywhere near the likes of that again unless we had another shrek to sell for a large ( if very under-valued , thank BK for that one ) fee .

 

Slow is not great these days when half of all the other premiership teams have people falling over themselves to buy them out or are able to secure large investment without letting the club go .

 

For some strange reason Everton are never mentioned with a buyout from a multi millionairre ( i mean i'am not even asking for a billionarre cos thats just plain greedy ) and in all the time BK has been in charge and has told us we're constantly looking for investment we've only been linked with the '' fantasy sports fund '' and we all know what happened ( or didn <_< t ) there .

 

I mean why is BK fining it so hard for people to invest in a club of our stature and with the massive fan base we currently have ? I'll give you 2 reasons .....

 

1. Cos BK doesn't want to take his grubby little hands off the reigns and wants to be the big man at the club , where as potential investors dont want a buffoon like BK at the helm and thus will not invest .

 

2. Or we're completely bolloxed financially and when the investors look at the books they think '' fook that '' turn tail and head for the hills as fast as their little legs will carry them .

 

Maybe we are slowly going the right way but things are still not rosy behind the Goodison financial scenes and i blame not 1 but 2 big fat grubby handed ba5tards for that .

 

I'll leave it to your imaginations who the other one is .

[Guest fozzie]

I said last year when we made the 24 million pound profit that we wouldnt see anywhere near the likes of that again unless we had another shrek to sell for a large ( if very under-valued , thank BK for that one ) fee .

 

Slow is not great these days when half of all the other premiership teams have people falling over themselves to buy them out or are able to secure large investment without letting the club go .

 

For some strange reason Everton are never mentioned with a buyout from a multi millionairre ( i mean i'am not even asking for a billionarre cos thats just plain greedy ) and in all the time BK has been in charge and has told us we're constantly looking for investment we've only been linked with the '' fantasy sports fund '' and we all know what happened ( or didn <_< t ) there .

 

I mean why is BK fining it so hard for people to invest in a club of our stature and with the massive fan base we currently have ? I'll give you 2 reasons .....

 

1. Cos BK doesn't want to take his grubby little hands off the reigns and wants to be the big man at the club , where as potential investors dont want a buffoon like BK at the helm and thus will not invest .

 

2. Or we're completely bolloxed financially and when the investors look at the books they think '' fook that '' turn tail and head for the hills as fast as their little legs will carry them .

 

Maybe we are slowly going the right way but things are still not rosy behind the Goodison financial scenes and i blame not 1 but 2 big fat grubby handed ba5tards for that .

 

I'll leave it to your imaginations who the other one is .

 

 

This is a damn fine post Willo me old mate

 

Oh and the reason we cant find a backer..BK..he wants his toy and fuck the rest of us

[john_webby]

since wyness has come in i think he has done well but 500k well i'm not sure dont get me wrong he is steering us in the right direction but i think a bonus of 500k is excessive

[Guest fozzie]

since wyness has come in i think he has done well but 500k well i'm not sure dont get me wrong he is steering us in the right direction but i think a bonus of 500k is excessive

The fat cats get rich on the backs of our loyalty and after the dross we've been served up over the last few season i really dont know how Wyness can live with himself taking that sort of money home.

 

Regardless of anything else its the product that happens on a saturday afternoon and frankly over the last years bar the odd occasion its been rank bad..dull unattrcative football.

[Zed]

since wyness has come in i think he has done well but 500k well i'm not sure dont get me wrong he is steering us in the right direction but i think a bonus of 500k is excessive

 

 

Not if his bonus was a percentage of the increases he is making, which he did do

 

Being involved in sales I see this a lot. The company give a sales person a salary and a bonus structure, which grows on an exponential scale, the highest bonuses being almost impossible to acheive, but it does happen.

 

take the shrek factor out and the clubs finances have massively (DRAMATICALLY is what BK would say)improved

 

Its only a loss on paper

 

The club continues to move in the right direction

[Guest fozzie]

Not if we keep on losing 10 mill a season we wont move forward..

 

Its not just a loss on paper..far from it the money still has to be accounted for so in real terms its a very real loss.

[GoldfishMemory]

Not if we keep on losing 10 mill a season we wont move forward..

 

Its not just a loss on paper..far from it the money still has to be accounted for so in real terms its a very real loss.

 

Fozzie I was having a dig at the start but even I can see a couple of million profit with 30 million of rooney money is a smaller improvement than a couple of million loss without the rooney money.

 

If you take the rooney money out the equation then last years accounts proberbly read -20 million compared to -1.5 this year!!

[Romey 1878]

If you look on icLiverpool you'll find that Wyness explains his wage rise

[Guest fozzie]

If you look on icLiverpool you'll find that Wyness explains his wage rise

how to explain the unexplainable...

[Bluetrip]

Despite his old promise of 'stepping aside for an investor' who could take Everton to the next level, Kenwright is never going to let go of the club unless there's an unequivacle fans revolt. He's a dreamer and thinks that somehow Moyes can work magic with no money. Look at the Shrek sale, that's the money we've been using to 'build' up the squad since. Kenright hasn't invested a thing for years apart from a vested interest in keeping complete control over his ego trip - efc.

 

With the Shrek money gone it won't be until we are struggling down the bottom that Kenright will start taking serious heat again and rightfully so, Moyes is just buying him time.

[Guest fozzie]

With the Shrek money gone it won't be until we are struggling down the bottom that Kenright will start taking serious heat again and rightfully so, Moyes is just buying him time.

 

Wise words...

[StevO]

the hardest thing is; there is no way, with all the money going around the prem, Everton have had no offers.

 

i was told in the middle of last season there had been at least 3 phone calls to BK regarding the sale of his shares, he returned not 1 call.

[Bluetrip]

We are due for a bumper £27 million TV payout next year and the following 2 years. The problem is all the other teams will receive it also and invest a lot more on top of that. The only advantage it will give us is over the promoted Championship sides. Kenwright will no doubt come out in the press and say we are financially stable and what a good job Moyes is doing while the likes of West Ham and Villa push for top 6.

[Willo]

Too many people are still blinded my BK's '' blind loyalty '' to the club , i think otherwise .

 

BK cannot love the club if he's having a detrimental effect on it , ok so the finances are better now than when he took over but thats only because of the shrek cash nothing else .

 

Everyone else seems to be zooming light years ahead of us financially whilst we are told that we should be pleased with fianancial stability , well that '' stability '' will go tats up if we dont start catching up with your West Hams and Man Citeh's .

 

Like previously said there is a shed load of money floating round in the game these days but BK's blue tinted specs cant seem to see it .

 

I am gonna take a banner to the next game with '' BK get some cash or pi55 off '' written on it cos the whole thing is getting fookin silly now .

[Guest fozzie]

It is thats for sure as we've been saying BK needs to retire from the club,life president whatever just fuck off out of the day to day running of the club and get someone in with the money to back us in the right way.

[Pat]

Time to print some T-shirts - Chris Samuelson on front..>Saviour on back..............

[Guest fozzie]

We are due for a bumper £27 million TV payout next year and the following 2 years. The problem is all the other teams will receive it also and invest a lot more on top of that. The only advantage it will give us is over the promoted Championship sides. Kenwright will no doubt come out in the press and say we are financially stable and what a good job Moyes is doing while the likes of West Ham and Villa push for top 6.

Great post hits the nail right on the head..we're becoming the new coventry always there or there abouts come the top 10 but no ambition to go any further.