Cash flow, Moshiriâs capital injections & the potential placement of new shares
What factors influence cash flow, how do clubs deal with negative cash flow and what is the situation at Everton under Farhad Moshiri, particularly in view of the mooted issue of new shares?
Jack Welch, the former CEO and Chairman of General Electric (GE), had a favourite saying. âIf I had to run a company on three measures, they would be customer satisfaction, employee satisfaction and cash flow. Cash flow is the pulse, the vital sign of the company.â
If cash flow is so important, then what is it?
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Record losses, partly attributed to Covid, Moshiriâs funding plans & stadium finance update
An assessment of Everton s accounts for 2019-20
Record losses, partly attributed to Covid, Moshiriâs funding plans & stadium finance update
There are two headlines from todayâs release of the report and accounts to June 30 2020. One is a record loss of £139.9 million of which the club attribute £67.3 million directly to the impact of Covid-19. However, that fails to acknowledge underlying losses of £72.6 million resulting from expenditure remaining much higher than income.
The second item of note is the continued financial support from Farhad Moshiri, £350 million up to the end of the accounting period, a further £50 million in November 2020, and a commitment to further fund the club through a placement of new shares, more of which below