Everton FC's strong financial results thanks to TV cash and "impressive" leadership of Robert Elstone, says Professor Tom Cannon
Football business expert praises Goodison outfit's bumper turnover and record profits
Professor Tom Cannon, head of strategic development at The University of Liverpool Management School
Everton's strong financial results might have been super-charged by the bumper TV rights deal but still reflect a well-run club, insists football business expert professor Tom Cannon.
The Blues released their annual accounts late last night - figures which revealed turnover has passed £100m for the first time in the club’s history, and a record profit of £28.2m during Roberto Martinez’s first season in charge.
University of Liverpool expert Professor Cannon, who is a Goodison shareholder, believes the club have benefited from their share of the £5.5billion broadcasting windfall and the impressive stewardship of chief executive Robert Elstone.
He said: “It’s clear that Premiership clubs across the board have been significantly boosted by the broadcasting deal. It has transformed finances, particularly for a club like Everton which runs a tight ship anyway.
“Robert (Elstone) is a very highly regarded chief executive. I hope he stays at the club for a long while; he oversees consistent awards for the club’s marketing operations and other aspects of the business away from the pitch.
“I can’t see the club going any way but forwards now. The profit alone from the 2013/14 figures would effectively have paid for Lukaku. Then these numbers also include the sale of Marouane Fellaini for £27.5m and Nikica Jelavic for an initial £5.5m.
“There were some quite chunky deals going through and the boat .”
Prof Cannon predicts that the Blues next financial results will also portray progress off the field.
“Even if you factor in the large transfer fee for Lukaku, from what I know of that deal his wages were sensible and the boat is never pushed out beyond the club’s means.
“I was at the recent International Festival of Business in Liverpool where Robert spoke. He was talking about all the club’s wider initiatives such as Everton In The Community, the free school and so on. These things might not effect what happens on the pitch but they form an impressive overall package nonetheless.”
Next month, officials from the Premier League will present their plans for the next auction of lucrative broadcasting rights to Britain’s top clubs.
BT are set to be major players again, following their ambush of BSkyB last time, and some analysts are predicting 60% inflation, which would deliver £1.6bn a year to be shared between the clubs.
While Prof Cannon believes the power of the Premier League brand is unrivalled, he said that Everton continue to help themselves along the way with their strong academy among many positives.
“Everton have a conveyor belt at Finch Farm producing excellent young talent,” he added. “You could be looking at Ross Barkley becoming an asset worth £40-£50m, and then John Stones will also add a big, big number in their asset list.
“They are producing a plater a season at the moment. With Liverpool also strengthening their academy I see the future being rosy for both clubs on Merseyside in terms of young talent.”
View accounts here:
www.scribd.com/doc/245088515/Everton-FC-2014-Annual-Report-AccountsSource: Echo
