Everton under threat of administration

Bannor

Everton under threat of administration
Aug 6 2004
Exclusive by Bill Gleeson, Daily Post

EVERTON Football Club could be placed into administration by the end of the new season.

Barclays Bank has told Everton it will not extend its overdraft beyond the current £5m facility and has warned it could face administration if it oversteps its limit.

The club had the latest in a series of meetings with Barclays yesterday, as millionaire director Paul Gregg launched a charm offensive among fans' groups in the latest round of his power struggle with chairman Bill Kenwright.

Gregg wants Kenwright to dissolve True Blue Holdings, which owns 72% of Everton, and says he can bring in £15m of new investment.

Having just banked the summer's season ticket sales and TV money, the club is unlikely to face immediate difficulties, but, with a £30m mortgage to service, a crippling wage bill, and transfer debts to other clubs, the problems will deepen as the season wears on.

If Everton is placed into administration, it would have nine league points deducted and be prevented from buying players.

Big Nelly

Everton are a shambles...this has been going on all of the summer and still nothing has been cleared up! How many players are they left with now in the first team squad? Rooney could be sold to clear the depts!

The Muppet

They'll sell Rooney in January and that will sort out their finances. If He hadn,t got injured in Euro 2004 he would be gone already IMO.

midget lord

neilbrady79 wrote:

Rooney could be sold to clear the depts!

dept of debt?

Villain

The Muppet wrote:

They'll sell Rooney in January and that will sort out their finances. If He hadn,t got injured in Euro 2004 he would be gone already IMO.

Who go's paying to pay their valuation??

Chelsea and Real are the only 2 that could afford him, or Utd if they sold RVN. Wanting to sell and finding a buyer at your price at 2 very different things.

Washout

As an Everton fan it has been an extremly frustrating summer.

Especially to see all the disputes going on in the boardroom.

The only thing that can save Everton is if Kenwright gets bought out by some1 who actually has alot of money. Its not good enough to be just an everton fan and then spend all your money in buying a big stake in the club if you dont have much left over to invest and sustain the club.

We need a Roman Abronovich!

jesus_thats_gre

In my opionion, Everton are bordering on gettiing into the same position that Leeds were in. Once the big clubs get sniff of this and Everton actively go out and try to sell Rooney, the interested clubs will offer then no where near Everton's valuation..

emertoff

Agreed Everton are a shambles but this story from the Daily Post (an LFC journal) makes no sense. They may not get what they would hope for Rooney but he will still bring in £20 M min when he goes. Added to that Ferguson and Campbell are in final year of their contracts which saves the club £60 K a week in wages. Everton's debt of £30 M is secured against season-ticket sales. They have a problem with the overdraft of £13 M and climbing but their is a proposal on the table to inject £15 M straight away and a further £15 M from a share issue once the ownership issue is eventually sorted out.
In addition the training complex at Belfield can be sold (value approx £8 M real estate) because the cluba re almost finished biulding the new complex at Netherton.

Yes, as an Everton fan, they are a shambles. Yes, we might be relegated.
But comparisions with Leeds are well wide of the mark. I just hope we can avoid the trap door.

jesus_thats_gre

emertoff wrote:

Agreed Everton are a shambles but this story from the Daily Post (an LFC journal) makes no sense. They may not get what they would hope for Rooney but he will still bring in £20 M min when he goes. Added to that Ferguson and Campbell are in final year of their contracts which saves the club £60 K a week in wages. Everton's debt of £30 M is secured against season-ticket sales. They have a problem with the overdraft of £13 M and climbing but their is a proposal on the table to inject £15 M straight away and a further £15 M from a share issue once the ownership issue is eventually sorted out.
In addition the training complex at Belfield can be sold (value approx £8 M real estate) because the cluba re almost finished biulding the new complex at Netherton.

Yes, as an Everton fan, they are a shambles. Yes, we might be relegated.
But comparisions with Leeds are well wide of the mark. I just hope we can avoid the trap door.

While I admit I was being a bit sensationalist, they are certainly looking like a club in trouble... The squad is extremely loose and its does not seem to look like it is going to get any better. They are an established club in same way that Leeds were. Fair enough they are not in the same sort of debt nor do they have the same wage bill, but Leeds a list of big names that they were able to sell off while Everton have 2 or 3 players of any worth..

emertoff

JTG, I agree with all you said.
But Leeds were something like £100 M in debt and even Chelsea had debts of £92 M before Abramovich came out of nowhere. There are about 10 Prem clubs with a financial status worse than Everton's, it's just that Everton's problems get highlighted because it adds spice to the current boardroom circus. Compared to that £30 M is not bad, especially when you consider we have had only 2 top half finishes in the Premiership.

jesus_thats_gre

Fair enough.. Which clubs are worse off.. I wasnt aware of them tbh..