Wouldn't we all like to know! I don't think I have read anywhere anything that has disclosed everything. Plus there is the murky payday loans of BK taken against the sky money for about the next 20 years!

The borrowings against EPL revenue (which includes all revenue, BBC and overseas) is kept to 2 years in advance. Probably because if the unthinkable happened in a given season, we'd have year 1 of the Parachute payments (the 3 year payments are front-loaded) to get rid of it.

The other long term borrowings have been done to death by others on this site, however I think bank borrowings tend to be mainly on overdraft, and as such most expensive. They would also tend to be the most jittery about lending to an EPL club, and want to recover monies so they can (not) lend to other, more viable, businesses.

Where can I see the most recent accounts?

Shane, you really don't want to see the accounts, scary stuff....

Very interesting subject and I hope that responses remain on subject.

As I see it, the Company has two facilities, one the long term 30 millioner and the other an overdraft. The former secured by future ticket sales and the latter by various mortgages of parts of the Goodison footprint.

Debt overall is seen as too high and the Banks have no appetite for lending money to football clubs aside from those where the debt is guaranteed by a benefactor.

So, it seems there is Bank pressure from Barclays with whom the Company enjoys a relationship.

I may have got all this wrong, but as interest on debt, expensive debt in the case of overdraft, Is included within the annual losses of £5m we here of . However, during the past year there have been significant disposals, players on high wages leaving and I would have thought quite a significant dint in the debt could have been made. To my knowledge only Fella has had a big pay rise, and obviously Pienaars pay to sort. But Tim's wages Yobo's Yak's and other must surely square those costs.

How much has actually been paid for Jelly?

In conclusion, especially with Jack going, again saving wages, I can not believe that overall debt can not have been substantially reduced in the past year, with the knock on effect of reducing future Company losses and I hope that someone can either agree with me or explain factually how it all works. Thanks

I agree Ian. I would hope that the debt is reducing rather than just being serviced. I would ask anyone who has a bit of knowledge of this sort of thing to make an enlightening post.

Guy, I think a couple of seasons ago the debt was believed to be in the region of £50M-ish. The reason the banks are particularly desperate to demand cash from us is because a large chunk of that debt was secured on land that no longer belongs to us... which the banks found out about when we failed to obtain planning for the Park End development after work had already started and an external wall had been demolished.

It's not just overdraft that has to be considered, that's only the day to day running of the Club, it's total debt that has to be serviced / repayed and £24 million is due for repayment or refinancing this year.

The Club already know the state of our overdraft and debt as the accounts to the end of April will have been prepared already, although we don't get to see them until October.

So the board already know who has to be sold on the last day of the transfer window to pay off debt.

How much interest do we pay a season across all outstanding debt?

According to this Article here

http://www.toffeeweb.com/club/business/finances_11.pdf

Interest is around 4.1m down slightly on 4.5m of the previous year. We pay a higher rate of interest on overdrafts and the Vibrac loans as short term borrowings so it's probably important to clear them financially if we want to have a transfer kitty going forward. Going forward if we managed this it would make us slightly more profitable (as long as performance doesn't suffer).

One thing people complain about unfairly is that Everton pay on the 'drip'. All clubs purchase Players (non current assets) like this. Its no different than most of us getting a mortgage to buy a house - most of us could not afford it ptherwise. Some clubs may pay larger amounts up front to reduce the price overall for clubs desperate for cash (like us). How we got into this mess in the first place is another issue...

So......if Ian is right, and the annual deficit includes the interest accrued on loans, the club is losing something like 500000 a year excluding the interest payments?

Now if this is the case (and I have no idea so please shoot me down if it isn't) the cutting of wages this year should easily save half a million?

A dark side of me thought "What if we sold Felleni, Baines & Jags, raise 40 million. Pay off the debt. Struggle to stay in the prem for a couple of years and build back up ". Then I slapped myself and thought "Dont be a twat".

Jim, but that 'loss' hides the fact that we sold Bellefield for 10 million which is a fixed asset that cannot be sold again and without which our loss would have been £15 million.

I would imagine a decrease in debt because of extensive wage cuts. Cahill, saha, beckford, yobo, Billy, Rodwell, arteta, yakubu, vaughan, faddy, goalie number 3 have all left, and with minimal signings, I expect we are saving 5million a year at the very least. We also made a good net profit last summer, whilst the January business was largely facilitated by billy's exit. We also would have earnt money from the cup run, and the ticket agreement we made. I also think the purchase of pienarr, which went against the typical summer net profits of previous summers, indicates that we are improving our financial position. I think that, as a result, we will see between 8mil and 12mil of the rodwell sale spent on players. I expect the money coming from rodwell further down the line will be spent on pienarr's installments.

Jim (275) - I am sure I have read before that there are huge penalty clauses for paying off the debt early, it was something like the debt was 35M but to pay it off in one swoop would cost 50M. Banks don't want all their money back at once because they then have to lend it someone else, they prefer a constant stream coming in on an annual basis.

Yeah, I had that thought afterwards! Thats how they make their money.

Eric,315. Did the money from the sale of Bellefield go into the operation or get paid directly to the bank?

Tony, I know in the US there is a law that states that loans can be paid back before deadlines with no added fee. It might differ in the rest of the world. Banks want money back over the long term because they stand to gain more, especially if a compound interest rate is in place (which is likely the case with Everton).

If money is borrowed with a compound interest rate, the amount of interest owed grows over time at a set rate. In the end we would likely be paying about the same amount in penalty fees as we will be in interest.

In your £35M scenario, assuming the interest rate is compounded, over the next 10 years, or however long we are scheduled to make payments for, we would probably be paying somewhere in the range of £50M of combined interest and principle. We could pay a little more or we could pay a little less but the early payment fees are designed to make sure the bank gets roughly what it expected to get.