HALF WAY
By
Mickey Blue Eyes

Friday, 19th January, 2007, seven months on from the last interview, and another taped meeting with Keith Wyness. It was previously arranged for mid-December but postponed at my request.

At the time of writing we are seventh in the league table, a distinct improvement on last season’s playing disasters. And we would be much better off if we had not dropped at least eight points in near-ludicrous fashion. The game is as coquettish as ever.

In the meantime I suggest you pay attention to what the club actually says and does, as opposed to the cheap ale-house gossip you can hear in your local watering hole.
.
So here’s the latest interview transcript. Make up your own mind.

MBE: Seven months since our last meeting, Keith. Thanks for seeing me again to update where we stand as of 19th January 2007.

The David France Collection: How much is required now? Last time the total stood at about £450,00.

KW: We’re at about the same level. We have had a re-evaluation of the deal with David. This gives us till the end of this year to raise the money. There has been an increase in the value of the collection. So we’re looking for about the same amount of money, but the Lottery application goes in shortly, which a lot of fans have assisted with. My only concern there of course is the Olympics claiming money from Lottery funds. We remain hopeful for the application. Then again we have the Barcelona game and “Heritage Week” to focus activities in March.

MBE: What elements of the collection have been handed over to the club so far? Presumably a certain amount has been paid?

KW: Everything will be handed over when the full amount has been paid. Also, we should be clear the club has its own extensive collection which we will add in.

MBE: Where do we store the club’s collection?

KW: We have it at various safe locations.

MBE: What kind of floor space will be required overall when everything comes together?

KW: The intention is to keep it at the Public Records Office, which means it will be available for research. But we intend to do various exhibitions on particular themes and take those out to schools or exhibit at various times at the stadium. So we won’t have the entire collection on view at any one moment, we’ll be taking different parts out to show as much as possible to the fans.

MBE: The reason I ask that is because it would obviously require quite a lot of space to exhibit the entire combined collection.

KW: Getting into the museum business is something we don’t want to do. As I have said to you before, I was involved with the SFA and establishment of their football museum. After it opened to great expectation it became a huge white elephant. You never make money out of this kind of venture. The way we are doing it is the right way in the light of that experience. It also keeps it fresh by giving people the chance to see it bit by bit.

MBE: So you are getting suggestions from the fans for its use?

KW: Yes, very much so. The fans are getting behind it and giving it real momentum. But we really have to push that match with Barcelona and the “Heritage Week.” We’ve got to the end of the year only in the agreement with David……………..

MBE: ………….And no further?

KW: No further. That’s the reality of it.

MBE: What’s the value gone up to now? Previously it was about £800,000 wasn’t it?

KW: I haven’t had the most recent expert valuation yet. The last figure is two years old. So there’s been two years of inflation.

MBE: Okay.

The transfer of retail activities to JJB. You previously mentioned some teething problems. Have they all been solved? Has this question of the JJB city centre store display of Everton goods been addressed? Some of the fans are really upset about the level of display provided by JJB.

KW: First of all, the Christmas sales were excellent. We had fewer complaints from fans about shortage of supplies since I have been here. The city centre display is something we are looking at with JJB. It’s been a pretty big investment so it isn’t going to be a short term thing. We will be looking to resolve that issue before the start of next season.

MBE: Fans I have spoken to have said the display is not upfront in the window, that it is right at the back of the store. And it doesn’t make anywhere near the splash of our beloved cousins.

KW: Well, the fact is we have given JJB the right to trade and they have their own commercial imperatives too. But they recognise the advantages of giving Everton goods a big splash if they can. It’s still early days though. This is the first few months of dealing with them so both sides will be assessing the first impact of the deal.

MBE: What are the comparative sales levels now? Is it still running at about ten percent of turnover, the last figure you mentioned?

KW: We’re up about ten percent on merchandise sales but the proportion has altered because other parts of the business have enlarged. So we’re a little down in turnover percentage terms, but up on sales. Retail sales are growing. A lot of that is through the JJB stores throughout the country, which is where we have seen a bigger growth than anywhere else.

MBE: Will you have figures for the rest of the country?

KW: Oh yes. Store-by-store and shirt-by-shirt, item-by-item.

MBE: You are happy sales are increasing?

KW: Definitely.

MBE: What was the last figure for shirt sales compared to the previous season?

KW: We are about ten percent up.

MBE: When we last spoke in August you said shirt sales were already at 16-17,000.

KW: Currently we are at about 20,000.

MBE: You also mentioned your hopes to increase international merchandise sales. Has there been any further movement in that area?

KW: Yes, very much. We’re working very closely with the Toronto group. They now have a travelling exhibition called “Play Soccer” which will visit eighteen different sites throughout Ontario. We are featured prominently in that.

We have also been working with them through the Academy to recruit new fans and players and to help with coaching. The whole motivation is to build up a fans base in Canada.

We are also about to launch a new on-line Academy product. This is a coaching programme to demonstrate youth coaching methods from six years old onward, the sort of methods which have given us such success in bringing through young players.

MBE: What is it, a game?

KW: No, no. It is actually an on-line teaching programme showing what you have to do on a daily basis in the Academy, a syllabus. This will be a world first. We will be marketing it with Canada to get it first up and running over there.

Every club has been struggling with new ideas to raise revenue from international activities. We think this is one way to convert Everton affiliation into a subscription-based service. It’s a great way to get people into it and raise interest in the game.

MBE: You also mentioned the USA last time, another tough market to crack.

KW: It is. Robert Earl’s been very helpful with his connections and we’re working with him on that and other already-established connections. He’s helping us to market the new teaching programme in the US.

MBE: Season ticket sales. What is the final plus or minus compared to last season?

KW: We’re about eight hundred down after half-season ticket sales.

MBE: Lounge membership?

KW: We’re down about one hundred.

MBE: Given the previous wretched season that isn’t too bad, nowhere near as bad as I was expecting. Nowhere near as bad as many people, me included, were expecting.

Robert Earl. He made it plain when he bought out Paul Gregg he was going to leave everything to the chairman, to Bill Kenwright. Does he attend board meetings and games?

KW: The first game he was at was last Sunday (V Reading). Being based in Orlando means it isn’t always easy for him to attend. He attended the only board meeting we’ve had since he bought in. But he’s already caught the bug and has been very helpful in marketing and wanting to take the club forward.

MBE: Obviously some fans have voiced the same concerns they had with Paul Gregg, that they don’t want the same circumstances to happen again.

Inward investment? Any further moves?

KW: Nothing at the moment we can discuss. Our main immediate aim was to get the board unified. We have achieved that. Now we are in a position to examine opportunities if and when they arise. Robert’s connections may prove useful in that area. But no, nothing to say at the moment.

MBE: The accounts for last season showed a ten millions loss. What were the main reasons for that?

KW: This included player amortisation, the one that always trips people up. The operating profit before player trading is just as crucial. In this case, three million profit. This season I have to say we’re looking at a worse year, definitely – if we were a public company we would have to put out a profits warning. That’s because we really pushed the envelope with signings in the Summer………….

MBE: ………That being the case, then, is this ten millions loss going to hold? What will we see next season?

KW: I think it will be around the same sort of numbers. Don’t forget that loss includes writing off the value of players. We now have about fifty million pounds worth of players on the pitch, which is the highest player value we have ever had at Everton.

MBE: So is it the case that one of the reasons that loss appeared is because you changed the method of delivering the accounts?

KW: No, no. The reason is because we spent so much money on the squad. We also have to write off part of the value of players, like depreciation of assets. So when we spend more on players the amortisation increases in proportion. If we weren’t active in the transfer market then it would show in the accounts.

MBE: I know this is an easy shot, Keith, but if some of the players were playing better their value wouldn’t depreciate would it? But moving rapidly on……….

The Academy. Is it still on time?

KW: On time, on budget.

MBE: Fans investment. You mentioned last August that this was being considered and there would be some news before the new year. We haven’t heard anything……

KW: I have always wanted to tie this in with the new Academy if possible. Also, the timing is important when you do this kind of thing. At present, having considered it, it is my judgement this is not the time to go to the fans.

MBE: But do you have a format in mind? Have you narrowed it down?

KW: Yes. We’re working on one format, the youth development side.

MBE: The new stadium, or the prospects of a new stadium. Last August you described four options under consideration. At that time, one of them was a site in Kirkby, that you were locked into an “exclusivity agreement” with Knowsley Council. When does that agreement expire?

KW: It doesn’t have a particular deadline. What we have done is tie it into certain milestones with their own time constraints. If the project doesn’t develop as we hope it will do then we can pull out at any time.

MBE: How many milestones does the agreement contain?

KW: There are quite a number, quite a few “trigger points” en route. The agreement could lapse at any moment along the way if they aren’t mutually satisfactory.

MBE: Does that mean that the other three options you described – you mentioned Switch Island, one with Liverpool City Council and (your words) a “dark horse” – have been discounted entirely?

KW: The decision we took at that time was that the Knowsley one was the best prospect of being deliverable. “Deliverable” is the key word here. It isn’t just about finding a site, it’s about financial and construction viability, existing and proposed transport, critical planning issues, in terms of the fans being happy with it. There are a lot of different factors. We felt Knowsley was the most deliverable so we set out to see whether it is or not. The City Council were very helpful in the 18 months before we decided to take up the exclusivity period. During that time they worked with us to explore possible sites in the city and we are aware of the options that were available.

MBE: Does that mean, then, that during the life of the exclusivity agreement that you will not be speaking to anybody about any other prospect.

KW: That’s correct.

MBE: The reason I ask that is because there have been some rumours that Liverpool City Council will be holding talks with you this month about a stadium option.

KW: No, nothing to do with a new stadium. We have a good relationship with the Council and speak to them all the time about a whole range of issues. Our next discussions will concern things like Bellefield, disabled programmes, community programmes, but there’s nothing about an actual stadium site we will be discussing.

MBE: Have there been any other proposals made to you to the point where you could say they were of interest?

KW: No.

MBE: Is the shared stadium still discounted? I do know the Stanley Park stadium has now gone to Stage 2 tender, and with the proposed takeover I believe this means it is odds on to go ahead. (This was before the latest news of a rival takeover bid – MBE.)

KW: We have had no contact from across the park at all.

MBE: Design of stadia. Obviously everyone is agog about the whole idea, even though you aren’t really at design stage. Is there any preference in the boardroom for the shape of a new stadium, for rectangular in plan as opposed to bowl-shaped? I don’t have a problem with either.

KW: Well, we are working on concept designs because we have to…………….

MBE: ………….so you are going through that exercise already?

KW: Yes, we’re in the process right now. It doesn’t mean to say it’s the final design though. But we have to get to a broad costing to see how feasible the whole financial package is, which is obviously THE key element. So we have got some designs we’re working with right now.

MBE: There’s no preference expressed for the plan shape of it?

KW: I’m not going to get into that detail of it. All I will say is that bowl-shapes are probably not favourite at the moment.

MBE: As I’m sure you know, Keith, a few of the new World Cup stadia in Germany are rectangular. The Borussia Dortmund stadium, the so-called “Magic Square,” the largest in the Bundesliga, is a particularly good example. I think the architect for it achieved a really excellent solution

KW: We have been across to Germany, and the working design, if we get that far, will be taken from one of those stadia.

MBE: Sodexho outsourced catering, now on the go for seven months. Have you had any complaints?

KW: Every catering operation that feeds a large number of people every two weeks is going to attract some complaints. But they are way down to where they were last year, significantly down. The vast majority of lounges feedback has been good. But we are also trying our best to rectify issues received through complaints.

MBE: So are you reasonably happy with their performance?

KW: So far they have upped the game for us, yes.

MBE: Everton TV. How many subscribers have you got at the moment?

KW: It’s about six and a half thousand, when we initially aimed for five thousand. We got to five when we only aimed for two-and-a-half thousand. It’s been a huge success for us. The content is continually fresh and good. Again, big kudos to Mark Rowan.

The other TV thing we’re doing is the Everton Block Programme. This is a weekly three hour TV programme that we have now sold to forty countries. It will be shown on cable or free-to-air. We are adding countries every day – today we sold to Poland. So that puts us with four other clubs who have the same sort of programme. Again, it puts our profile up around the world.

MBE: It’s going to be a long battle isn’t it to get to the level you want to get it to?

KW: Yes, but we’re making big strides.

MBE: The Stevens Inquiry into football corruption. What evidence or statements did the club provide to the Inquiry? Was the club approached?

KW: Yes, every Premiership club was approached. The Inquiry looked at about three hundred and fifty transfers over a set period of time. Every club had two transfers singled out. The Inquiry went into a fair level of detail in each. We gave all the information we were required to do. After that, they then chose certain transfers to go into in greater detail. I think there are now seventeen outstanding. We have heard no more since we provided the information requested so we can only presume there will be no further requests.

MBE: What happens now?

KW: The information has now been given to the Premier League, who requested the Inquiry in the first place. They have gone to the FA and together they will decide if the information gleaned is serious enough to take it to the authorities. I believe there is additional information to this which may receive other consideration.

So we co-operated fully at all times, as you would expect.

MBE: Agents fees. Any changes? You last commented that the club had lobbied to have fees paid by the players.

KW: That will come into force this Summer. There was some talk whether it would be introduced in the January window, but we felt that would be too soon and the transition period too short so we settled for the Summer. It’s a big step to getting transfer fees down, I think.

MBE: That’s encouraging. Has there been any move to ban players’ betting on the outcome of games?

KW: There’s been no discussion of that to my knowledge since we last spoke. It hasn’t been brought up as an issue. I’ll have to get up to speed on that, Mike.

MBE: Any more news on the TV deal? How long is it for?

KW: It’s for three years. All the news is now out. It was complete as of yesterday. The international money came out yesterday.

MBE: What will that mean to Everton Football Club?

KW: It will mean we average about £35-£38million, where previously we averaged £24-£25million. Given that all the clubs will get a big increase the struggle will be to make sure it doesn’t go straight through to the players’ car park!

MBE: Surely that’s all that’s going to happen isn’t it? It’s just inflationary isn’t it, nothing more? At the moment I don’t see how the game can change unless there’s a ceiling on players’ salaries.

KW: I wonder if we can look at greater performance-related payments as opposed to large basic salaries.

MBE: Well, a salaries cap was applied in Rugby League wasn’t it?

KW: I read an article this morning which asked why football clubs didn’t operate like, for instance, Goldman-Sachs and give big bonuses at the end of the year. It all seems great in theory until you get to the reality of three or four clubs competing for the same player. Then I’m afraid all the good intentions evaporate. Only legislation will change it, but we’re a long way from that yet.

MBE: One of the things that has concerned fans this season is the number of home games where we have seen large empty tracts in the away section. Is there ANY way of reducing that?

KW: The away fans decrease is right across the Premiership. It’s a real problem. It isn’t just a case of seat prices. I believe one of the root causes is the intercity transport system in the UK. Trains are inefficient and expensive, motorways jammed. It’s a big problem for away fans. You know yourself a trip to London can be a nightmare. Add in TV (and illegal pub TV), and a lot of people are now deciding not to make the effort.

MBE: I think it’s also tied into the “peaking” of the Premier League.

But that’s not the thrust of this question. In terms of the empty spaces, generally it has been predictable. Somebody like Reading, no disrespect, simply doesn’t have the following of, say, Manchester United. If that’s the case, their ticket take up is reasonably predictable. Sure enough, they didn’t even half fill their allocated area. In which case, surely the Upper Bullens area could have been sold to our fans?

KW: Well, the problem is the demand isn’t there with our fans. In the Reading match for instance we had a thousand kids free with an adult. We did several other promotions and worked very hard on them, and that was the end result.

I still think a big factor is illegal TV showing in pubs. Under the new TV contract there’s going to be a much stronger effort to clamp down on it next season.

But a combination of all these factors means getting people to live matches is going to be a battle.

MBE: That brings us full circle to the discussion we’ve had several times about the affect of TV broadcasts and the excessive amount of it. For instance one thing that increasingly irritates traditionalist fans like myself is the way the weekly fixture list is spread out over Saturday-Sunday-Monday, thus defocusing the appeal and diluting the spontaneity. It doesn’t widen the appeal, it weakens it.

KW: I’m caught between two stools on this issue. Few people would doubt the advantages of the TV money. It has helped attract better players and promote the Premier League profile around the world…………..

MBE: ……but surely, Keith, there will come a moment when a decision will have to be made as to the best method of controlling it in the interests of the game. My view on that is – so what if the TV money dropped? All that would happen is a proportional drop in players earnings, and the players would HAVE to take a drop or kill the goose that lays the golden eggs. They won’t do that in a hurry.

KW: That may be, but we’re set up for the next three years……………..

MBE: ………..sure, I’m talking generally about some time in the future. I know too it is very easy to talk rhetorically about this. When you’re sitting in the hot seat and need the money it is a totally different matter.

KW: Well, it’s not even that. We’re part of a league that is a very sought after commodity. It is that which generates the money, and that’s “the deal you make with the devil.”

MBE: Do we know what percentage of the turnover is contributed to by live matches broadcast?

KW: The international TV money announced yesterday has gone up one hundred and five percent. It brings in about £625million from overseas broadcast rights. Everton will make about £10million per season from those international rights.

MBE: Fans meetings. Have you had any requests for meetings since last August?

KW: Just the shareholders groups.

MBE: And that’s all?

KW: There was one supporters club who requested a meeting but it had to be postponed at the last minute because we had a board meeting. It will be rescheduled for early this year. Apart from that, no requests.

MBE: I find that absolutely amazing. I presume the offer is still open?

KW: Oh yes, definitely.

MBE: Racism. What is the current level of complaints?

KW: I’m sorry to say there has been a slight increase. Ray Foy is our new safety officer and he has initiated a very strong campaign. We’ll be taking very strong action on this matter.

MBE: I had an absolutely appalling experience at Fulham, Keith. There were five young men sitting behind me in the away section and one of them kicked off with some racism. He’d had a little to drink, though he wasn’t out of control. In the end I turned to him and told him I would have him ejected if he continued. To his great credit, he stopped and apologised. But in front of me was a collection of racist thugs – including some women – who started to do the same thing as match fortunes turned against us. Even by racist standards I haven’t heard anything like it. And for some unfathomable reason it always seems to happen at Fulham. I haven’t a clue why this should be.

KW: We had the coin throwing there as well.

MBE: So it has increased slightly? Do you feel this is because Ray Foy has identified it and zeroed in on it more?

KW: Possibly. But we have also decided enough is enough. Severe action will be taken against the culprits.

MBE: Do you know what the complaints figures are?

KW: I don’t have the figures to hand.

MBE: Okay. I do think it would help if you could post those on the official website, Keith, so the fans could see where we stand. That way there’s no excuse to stand by and listen to this filth as though it was a one off. Concerned fans would be more inclined to keep an eye out and report it.

Transfer window. Are we fresh out of money?

KW: It was always going to be very tight given what we spent in the Summer. But there must be about twenty deals we have worked on that haven’t borne fruit.

MBE: Is that the average number of deals you would expect to run on the basis of perecentage success? Obviously if we had more money you would be doing more deals.

KW: There’s no average in a transfer window. It’s bizarre. It is like a property chain as well. If you want to buy or sell somebody you need a replacement, and the whole chain is linked for everybody. It can get quite complex. All I will say is that we are actively working at present. I’m not saying we haven’t tried yet, just that nothing has transpired.

MBE: Okay, Keith. Thank you very much indeed for seeing me again and my best wishes in the New Year……………..For all of us!

KW: You’re welcome. Here’s to the New Year. (27/01/07)

What Do You Think? e-mail bluekipper.com              M.B.E. Index