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Colm's Corner
Columnist: Colm Kavanagh


Ever Decreasing Circles
21 May 2006

The Megastore

 

These are worrying times to be an Evertonian.  It’s eleven years since we last lifted a trophy – the FA Cup – and it’s longer still since we competed for the Championship title itself.  Our immediate future doesn’t offer much hope of challenging once more for those titles – the goalposts have shifted – and those highly successful years in the mid-‘80s are nothing more than a distant happy memory for most; a chapter in our history for a younger generation.

Mr Wyness, at his first AGM, presented a PowerPoint presentation to the shareholders, explaining the Club’s financial standing — a bubble (Everton crest within) denoting our standing against fellow Premiership occupants.  What constituted the size of bubble was annual turnover, and general financial good health of that club.  Our aim?  To match the bubbles of clubs like Tottenham Hotspur, Aston Villa and Newcastle United.  Quite a challenge, no doubt, when you consider that in 2003-04 their turnovers were £66M, £55M and £90M respectively.  Our turnover, by comparison, was £44M.  In reality we were drifting along, in the middle of the pack, not upwardly mobile, our turnover was actually less than both Southampton’s and Birmingham City’s, but marginally greater than the figures attributed to both Middlesbrough and Charlton Athletic.

The Godsend that was a season of over-achievement, finishing in fourth place, earning an opportunity to qualify for the Champions League, papered over the cracks after a summer of turmoil in the Boardroom and the farce surrounding the never to be seen Fortress Sports Fund millions.  The inevitable departure of the finest talent to come through the ranks in many years also financially loosened the noose.  To say the least, it was an eventful season and, no matter what your opinion on the detail may be, our annual turnover rose to its highest yet — £60M.  Some may champion those figures but the reality, once again, is that we’re light years behind these clubs we’ve identified as targets.  Spurs increased their turnover to £71M, their highly visible policy of speculating on young talent seemingly finding reward.  Their ground at White Hart Lane is also well-equipped to cater for the corporate sector – and no doubt those facilities go a long way to swelling their annual turnover.  Newcastle United are in a similar position, though suffering a slight drop with a turnover of £87M, their facilities will forever put them well ahead of Everton.

With a finish this season in the bottom half of the Premiership, and possessing a small squad in serious need of strengthening, it is pretty much case closed at the next AGM for Mr Wyness in his attempt to increase the size of that Everton bubble.  Spurs, though narrowly missing out on Champions League football, have a vibrant squad anticipating European football next season at a modernised ground, their outlook bright.  Similarly Newcastle, who finished the season strongly, earning a possible route into the Uefa Cup via the Intertoto Cup, appear to be on an upward spiral again now that Glenn Roeder has been installed as their manager.

“Goodison has so many flaws that a new stadium is crucial,” said Mr Wyness back in October 2004.  Twenty months on, those flaws appear widespread and never more evident than earlier this year when the floor collapsed one evening in the tent behind the Park End — a reminder, as if needed, to highlight the chasm that lies between our corporate facilities and our rivals.  Both Tottenham and Newcastle redeveloped their own grounds, to attract and facilitate the modern corporate client.  It appears as though Everton are extremely reluctant to consider a similar plan of action at Goodison and are waiting for that gift horse to make itself present in the form of a new stadium.  Whatever you may think of Goodison Park, whether it has a future or not, it remains one of a decreasing number of assets we actually own.

The recent closure of the city centre megastore in Ranelagh Street and other Everton retail stores throughout the region might make sense on the balance sheet — but the downside is a removal of our very being, a presence in the city centre.  It cannot be overstated just how important it is to retain an identity in the city centre.  As it stands today, we’ve nothing in town bar ‘three-foot square’ in some JJB stores.  Liverpool FC?  Handed to them on a plate, the only club in town with a city centre presence. 

I liked the Ranelagh Street store; its location was excellent – within walking distance for any city centre shopper in Liverpool.  With the city bracing itself for the City of Culture festivities in 2008, and Mr Wyness desiring a greater sized bubble representing increased turnover, I will be amazed if Everton do not relocate elsewhere in the city centre, be that a short-term lease or the purchasing of a site.  The club cannot take it for granted that all Evertonians are match-going Blues who will be in the vicinity of Goodison Park and therefore able to frequent the megastore by the ground.  The club cannot overlook the fact that a percentage of customers, in town, or simply visiting Liverpool, act on impulse, crossing the door.  Any business that doesn’t allow or cater for this kind of customer deserves shooting! 

How many of you have walked into the Ranelagh Street store and departed having purchased more than you initially intended?  Without a footprint in the city centre, Everton Football Club stand to lose out massively, a further erosion of our identity.  All well and good saying our relationship with JJB will benefit the Club but I find it hard to believe that most shoppers, if specifically wanting to support the Club, will make their way out to Goodison Park on a non-match day to buy in the megastore there. 

I recall when the city centre store first opened, the Club were eager to appear ambitious.  “Expanding the store portfolio” was one statement in usage at the time.  Sounds good.  “We want to drive the commercial operation forward.  There has been no cannibalisation of sales from the Goodison Park site,” said Alastair Saverimutto, then commercial manager at Everton.  “We are happy they are new sales at Ranelagh Street and we have exceeded our proposed sales targets. We are hoping for great things from the two new shops and I am hoping to open more.  The environment is right and the setting is right,” he added. 

So where did it all go wrong?  It’s not that far back in time we were championing the expanded store portfolio, making shopping at Everton, supporting Everton more accessible.  That has now been removed with the recent closures.  And for what little it may be worth, how many Evertonians after a game have given up on queuing outside the megastore waiting patiently to get into the store to make a purchase?  Shopping in town was so much easier, a leisurely pursuit you could call it.  The one remaining store, by Goodison Park, owned now by JJB but carrying an extended range of EFC merchandise, is anything but that.  Might as well open up the old souvenir shop on Goodison Road and deal out of cardboard boxes as before!

Mr Wyness, if you realistically want to push up that annual turnover figure over the coming seasons, hopefully inching closer to those we seek to catch, then you must surely provide Evertonians with a city centre location otherwise many might come to view the city thus:

Liverpool, European Capital of Culture 2008 – Home of Liverpool FC and The Beatles?

I’m sure that a guaranteed £28M per season television revenue courtesy of BSkyB and Setanta  over three seasons commencing 2007-08 (that’s £84M!) should be enough to ensure Everton FC can get a loan from at least one financial institution in order to re-establish a city centre store we Evertonians would indeed support.


The ball’s in your court, as is the bubble.  “How big’s yer bubble gonna be this year, Sir…..”

Colm Kavanagh

 


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