Too big to fail? Everton appear to be in some real financial trouble

[Piethagoram]

 

[Robbie]

The Premier League is an absolute mess, Football in this Country is in a mess for a variety of reasons, the power of the top six, out of control finance in the Premier League, Clubs going out of business down the Football pyramid.

Things are only going to get worse as clubs outside the top six try to compete and go into further and further debt.

Something drastic needs to be done, such as a whole new restructuring of the game. There needs to be financial caps put on all clubs to limit the spending in the Premier League and EFL.

The recent proposals that look like being adopted by the PL don't go far enough and will not address the massive disparity between the top six PL Clubs and the bottom six.

There has to be a financial cap that is the same for all Clubs in the PL and each league in the EFL. All 20 Clubs in the PL should have the same cap, not based on total revenue, but based on the limit a club can spend on transfer fees and wages. 

The transfer/wages cap could be for example, be based on the average turnover of the bottom 10 clubs of the PL. That would equal things up somewhat by cutting transfer fees & wages, of the top 10, making the PL more interesting for the fan.

There could be a levy put on the profits of the top clubs that could be used to help clubs all the way down the football pyramid.

[Wheelbarrow repair man]

This Might Be A Bit Over The Top. But if Everton Did Go Bust would that make the FA Realise that the current state of English Football is all wrong and Do Something About It. Do You Think?

[Robbie]

It may be a bit over the top @Wheelbarrow repair man but just look at the new proposal which will go to a full meeting of PL clubs later in the year. It just doesn't go far enough.

The FA would take the budget for the club that is seen to be the smallest, so for this season it would be Burnley or Bournemouth, so the amount of money that could be spent by the richest club would be linked to Burnley’s budget by a multiple.

“So far, what has been discussed is a multiple of 4.5, so if Burnley spent £100m on player costs,  (that's transfers and wages), the richest club would then get a budget of £450m.”

That is still grossly unfair for a smaller PL club or a club getting promoted  to the PL in my book.

Many of the owners lend money to the clubs they own, rather than give the money. Lending the money instead of just giving it could possibly be a way of offsetting tax.

Everton was lent money, but what happens when the loan is called back and the club cannot pay, Insolvency?

[DangerousSausage]

The mismanagement must be pretty epic to be threatened with administration despite all the money PL clubs get. If they really are delaying going into administration to avoid a points penalty, isn't that a bit problematic? Delaying insolvency proceedings is a criminal offence in some countries.

All the same, if they do go into admin, they'll certainly get bought by someone. They're a huge club with a brand new stadium ready to move into. Perfect for a glorious new era.

[Piethagoram]

 

[KB1862]

I can't see the 777 takeover going ahead. There's something not sitting right with the whole thing. I feel like the inevitable will happen and Everton will enter administration.

You'd have thought that a club like Everton would have a queue of buyers lining up to take them out of this mess. 

[Piethagoram]

On 03/05/2024 at 20:18, DangerousSausage said:

The mismanagement must be pretty epic to be threatened with administration despite all the money PL clubs get. If they really are delaying going into administration to avoid a points penalty, isn't that a bit problematic? Delaying insolvency proceedings is a criminal offence in some countries.

All the same, if they do go into admin, they'll certainly get bought by someone. They're a huge club with a brand new stadium ready to move into. Perfect for a glorious new era.

Timing of this scenario is a real issue to me. A further points deduction this season could see them relegated but delaying it to next season, they then just hope to remain in the PL and make up the lost points

[Piethagoram]