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SBD Global/January 4, 2013/FinancePrint All
EPL Everton FC announced losses of £9.1M ($14.8M) for the '11-12 season, which were "worse than had been expected," according to Scott Rutherford of the LONDON TIMES. The club's wage bill "soared by more than £5M ($8M) to a record £63.4M ($103M)." With Manager David Moyes trying to keep Everton in Champions League qualification contention after taking 36 points from its first 21 games of the season, "the club’s latest financial figures illustrates how the manager is handicapped when it comes to strengthening his squad." The club’s overall debt increased from £44.9M ($73M) to £46M ($75M), but Goodison Park officials are "positive about the results," which included "lower-than-anticipated revenues from TV and gate receipts" as turnover fell by £1.5M ($2.4M) to £80.5M ($131M), 75% of which was spent on player wages (LONDON TIMES, 1/3).
POOR START HURTS CLUB: The PA reported Everton's poor start to last season "played its part in contributing to a fall in gate receipts and season ticket sales," while the club was also picked for fewer live TV games. The new TV deal, which comes into effect this summer, "should ease the financial pressure" on Everton. Chair Bill Kenwright "continues to search for investors to help the club compete financially" with its Premier League rivals. Kenwright: "My desire to find a person, or institution, with the finance to move us forward has not diminished" (PA, 1/3).
SOME SAVINGS: In Liverpool, Greg O'Keeffe reported the results also show "savings in other operating expenses" such as running Goodison Park, and the club's training ground, Finch Farm. Those expenses fell for the second successive season from £23.6M in '10-11 to £22.7M ($37M) last season. Sponsorship revenue "showed signs of growth," from £6.8M to £7.1M ($11.5M). This "did not include" new partnerships made with kit supplier Nike and secondary online ticketing marketplace StubHub, which did not fall into the '11-12 financial year (LIVERPOOL DAILY POST, 1/3).
French sports goods giant Decathlon "is planning to enter the Indian market as a single-brand retail chain," according to Nivedita Mookerji of the Indian BUSINESS STANDARD. Decathlon "has written to the government proposing to open retail stores in India, similar to the 20 other countries" in which it conducts business. The move marks the first time that a cash-and-carry player has formally sought to do retail in India. Single-brand retail, which until a year ago had a Foreign Direct Investment cap of 51%, can now be fully foreign-owned, "thereby encouraging int'l chains to foray into India." In multi-brand retail, 51% FDI "was allowed recently." So far, "many int'l retail chains operated only in the cash-and-carry category, as it did not impose any FDI limit on companies." Decathlon is "among the largest sports goods retailers of the world," with its annual revenue estimated at more than €6.5B ($8.5B) (BUSINESS STANDARD, 1/3).