McCabe and Birch - PLEASE take note

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WeltonBlade

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The following is a copy of the programme notes from the Hull City v L**ds game last Tuesday written by Adam Pearson. It is in this format though because he also took the trouble to email all supporters on their database to ensure maximum publicity. I've met Adam Pearson previously on a business level and always been impressed by his straight talking.

There is so much in this that is interesting and you can't help but wonder what would come out of The Lane if Birch would either by brave enough to be honest or, as in Pearson's case, someone new could shed light on the behaviour of the old regime! My Tigger loving colleagues reckon that, post these dramatic wage cuts, they have better players. I also love the L**ds comments.


Adam Pearson’s programme notes from Hull City’s home match against Leeds
United at the KC Stadium on Tuesday 1st February, 2011


It’s the end of another transfer window and one of the busiest we have had for a
while with some major transfer ins and outs for the club.
The pace at which the team and squad have evolved this season is pretty
remarkable and I think only Andy Dawson will be in the team tonight of those that
started against Swansea City back in August. It is always difficult to build a new
young team during the season and certainly two windows is not enough time. It
generally takes at least eighteen months to build a new side that is successful
therefore I think to be competing in the top half at this stage of the season is a very
good achievement by the management team and of course the players, who have for
the last three months showed a real appetite for the battle that is so competitive
every week in the Championship.

I will try to cover all the player issues of this window as factually and in as much
detail as possible so that everyone concerned can see the thought process behind
the squad rebuilding. Firstly in the case of Jimmy Bullard I was really disappointed
with the Hull Daily Mail’s coverage of the deal. They claimed that Jimmy was allowed
to leave for a £10,000 contribution per week from Ipswich Town. I called the paper
and gave them the correct facts but they still persisted in saying that Ipswich were
stating it was around £10,000 per week. This is really disappointing because in over
eight years at Hull City I can’t ever remember giving them an incorrect figure or
statement, so for them to doubt our word publicly was disappointing.

So for the record the guaranteed loan contribution to Jimmy’s wages from Ipswich
between now and the end of the loan contract is £321,480 exactly, which by my
maths is nearly double the £10,000 per week quoted by the Mail. That is the factual
contribution and it’s a shame to have to discuss this in public, however the Mail
seemed to be implying that Ipswich had “nicked” him out and that we were being
foolish in releasing the player for this amount. Well in this economic climate that is an
awful lot of money for a Championship club to pay for any player let alone one who
has had serious long term injury problems, and remember they have to pay it
whether Jimmy is fit or not. We let Jimmy go because he needs games to reignite his
season and because he actually wanted to make the move to Ipswich! It’s a move
that is in the best interests of both parties. Jimmy is an undoubtedly talented player
who has two and half years left at this club. His contract alone is 21% of our total
playing wage budget for next season so we hope he comes back in the summer
match fit and that he’s ready to go as part of the squad for next year with a clean
start and some games behind him.

The sheer size and length of the contracts that the Premier League signings were on
have made it very difficult to realise any transfer fees, such is the sheer scale of the
players’ contractual wage value. It is going to be difficult to move say Kamel Ghilas
on a permanent deal even on a free, as the contract is so long and heavy. This is a
player who we paid £2.6m for and a £500,000 agent’s fee! Clubs are just too well run
these days to allow you to trade out of these kind of deals. The same on Kamil
Zayatte who was earning four times the normal rate for a Championship centre half,
so you just have to be delighted to lose the wage burden for the long term.
Ian Ashbee has also left the club this week which again is a major departure which I
am sure has been queried by some supporters. Ian has been a magnificent servant
to this club for over eight years and his role in the development of the club from what
was the old Division Three to the Premier League was very, very significant on and
off the pitch. He has had a fantastic journey with Hull City and has been very
influential in creating the modern successful Hull City. I remember signing him in the
portakabin at Boothferry Park on a free from Cambridge United and I’m quite sure
neither of us had any idea of the success the club would have under his
captaincy. When Nigel and I became aware of Preston’s pursuit of Ian it was no
surprise to us as they obviously need a leader on the pitch, however we thought Ash
would want to see it out here at Hull particularly when he was captain, playing well
and influencing the team. However when Ash handed his transfer request in on the
eve of the QPR game then it was clear he wanted to go. The timing on Preston’s part
was very poor for us giving us no time to replace Ian and disrupting our preparations
for the QPR game. We knew they’d been talking to Ian for a couple of weeks so we
can only guess why they left it to the last possible moment. The contract offered to
Ian and the length of contract offered is something that we could just not match at
this time. Ian needed that security and we understand that completely, however we
have to run the club on a proper business footing now and we can’t commit to
contracts on sentimentality or popularity stakes. Ian will always be welcome back
here and I’m sure we will have a fitting dinner at the stadium in due course to honour
his achievements here, but football waits for no one and it’s time to move on and
build a new team under Nigel now. The club though will miss Ian undoubtedly and
we wish him all the very best at his new club. I know it’s difficult for supporters to
lose favourite players who have been with the club a long time but we have to move
on. The two guys in the midfield frame tonight, James Harper and Corry Evans, need
your support now. Players respond to positive backing and those two could do with it
tonight for sure as they look to take over the mantle.

The squad is changing at a tremendous pace and we have to be patient. We are not
going to become a fluent and high scoring team overnight, it just does not work like
that. A team has to be created then allowed to evolve and find its own identity and
style. I would say we are about halfway through that process. Hopefully by sheer
willpower, desire and good management we can keep accumulating points and
challenging around the Play-Offs, however we won’t be the finished article overnight,
that takes at least three windows if not four. Over 30 players have left the club in
nine months reducing the wage bill from a ridiculous £39m to £13m and that is
probably unique player turnover, so please bear with us while the team finds its feet
and the Manager makes his mark on the style and format of the club.

We have brought in Corry Evans, Tijani Belaid and extended the loans of Cameron
Stewart and Brad Guzan over the last two weeks, as well as completing the £2.5m
purchases of Aaron Mclean, James Chester and Matty Fryatt earlier in the
window. We have also extended the contracts of Jamie Devitt, Tom Cairney and
Mark Cullen with an eye on the future makeup of the squad. These home grown
players along with Liam Cooper who is doing extremely well at Carlisle United have
an important future in the squad and their time will undoubtedly come.

We have, over the last two days, made offers for Cameron Stewart and Corry Evans
to join us on permanent deals. They are fine young footballers and, just as
importantly, they are good characters who want to work hard at their game to
progress to the top. All three young players from Manchester United have been
exemplary since they joined the club. Cameron has hopefully now joined us
permanently for £300,000 and we will be working hard to secure Corry permanently
just as soon as Manchester United give us the green light to do so. James Chester
alongside Anthony Gerrard was excellent against QPR and looks already to be great
long term value at £300,000 as a player for the future who will progress with the
club. It’s only 18 months ago that the old board spent £1.7m on loaning Ibrahaim
Sonko for a year, three days after selling Michael Turner for buttons so you can see
the different recruitment policy that Nigel is following. It’s one of building for the
future rather than just the now. These signings wouldn’t be possible without the
continual funding from the Allam family, and their financial support already has been
colossal and completely transformed the club from one in danger of oblivion only
three months ago to one with a very bright future today.

Obviously replacing experienced pros with youthful players starting out in their
careers is a risk and there will be highs and lows for sure, however if we can get the
mix right then the future will be strong for many years to come. We must on the
whole recruit our experienced players on Bosman’s and pay the fees for young and
upcoming players who can increase in value and underpin the financial well being of
the club for years to come. We must be patient both with the players and
management team because this is a medium term project and they must be given
time to get the balance and recruitment absolutely right. We have now got one of the
best management teams around and for the good of the club they must get the
appropriate time, support and patience. Those clubs who support the management
team over the long term are those that are subsequently successful, that is a fact.
One addition to the management team is Joe Corrigan who has joined us initially
until the end of the season as Goalkeeping Coach to replace Mark Prudhoe. I am
sure you will join me in welcoming Joe to the KC tonight.

QPR on Saturday was a very tough game against an experienced and expensive
team brought together over two years, but I thought we richly deserved a point and
could have nicked it in the last ten minutes for sure. We will need to show the same
level of desire, work rate and intensity tonight against Leeds United that is for sure
as they are a very good side with good individuals and a very fine manager, however
if we do we can keep our run going of that I’m sure.

Unfortunately tonight Leeds will have the entire North Stand and this has to be the
last time that happens if at all possible. We get tucked away in the corner with a
couple of thousand tickets at Elland Road and it can’t be right that we have to give
the whole stand to Leeds when they come to the KC. They are entitled to 10% under
Football League rules, however because of segregation requirements we can’t get
Hull City fans in that end as well, so we have had to give the whole stand to Leeds,
although the capacity is cut due to the visiting supporters having a tendency to stand
all game!! Next season we are, if at all possible, going to attempt to relocate away
supporters for every game so that we can have a North Stand full of season ticket
holding Hull City supporters. We feel sure this will improve the atmosphere at the KC
and give the home supporters their right to be behind both goals with decent facilities
below. Obviously there are health and safety issues to overcome but where there’s a
will there’s a way and it’s time to turn the KC into a ground that is laid out to benefit
our team and our supporters.

We need your support at its best tonight to try and get the gap between us and
Leeds down to four points. With the effort and commitment the team showed on
Saturday it should prove to be a cracking derby match to savour.
Adam Pearson
 

"There is so much in this that is interesting and you can't help but wonder what would come out of The Lane if Birch would either by brave enough to be honest or, as in Pearson's case, someone new could shed light on the behaviour of the old regime"

A very interesting read but the obvious difference with us is that we don't have an 'OLD regime' to blame for our financial problems. Birch can hardly blame Terry Robinson for everything when McCabe has been in overall charge all the time.
 
Very interesting stuff.

Agree that we aint got an old regime but the clarity and willingness to communicate with the fans says it all really.

Instead we get this in our matchday offering from Blackie II

'Obviously I have great affection for the Foxes because I joined them when they were probably at their lowest ebb in terms of being in administration, but we managed to achieve promotion to the Premier League.'
 
"There is so much in this that is interesting and you can't help but wonder what would come out of The Lane if Birch would either by brave enough to be honest or, as in Pearson's case, someone new could shed light on the behaviour of the old regime"

A very interesting read but the obvious difference with us is that we don't have an 'OLD regime' to blame for our financial problems. Birch can hardly blame Terry Robinson for everything when McCabe has been in overall charge all the time.

What I meant was - if there was a change, new owners for instance, I wonder what truths we would learn about the McCabe era.
 
What I meant was - if there was a change, new owners for instance, I wonder what truths we would learn about the McCabe era.

Some stuff like this has already come out through McCabe (the cost of Andrew Davies for eg), like Pearson it's done to justify his own position rather than for any great desire to be open with the fans.

Wonder what Hull's players make of having their wages made common knowledge?
 
Some stuff like this has already come out through McCabe (the cost of Andrew Davies for eg), like Pearson it's done to justify his own position rather than for any great desire to be open with the fans.

Wonder what Hull's players make of having their wages made common knowledge?

I think he's pretty clever in not actually stating the salaries? The contribution from Hull doesn't give away his precise salary? Not sure.

I agree that he is justifying his acvhievements in reducing wage bill etc but it's pretty good stuff imo.
 
Fair point Coops - the impression is that its issued because of a frustration with inaccuracies of coverage in the media.

At least they get coverage in the media - this morning's Look North on Breakfast News reported the fact that pigs have no news about a new manager.
 
I think he's pretty clever in not actually stating the salaries? The contribution from Hull doesn't give away his precise salary? Not sure.

I agree that he is justifying his acvhievements in reducing wage bill etc but it's pretty good stuff imo.

He's says that Bullard accounts for 21% of a £13m wage bill and even where he doesn't give numbers, Hull fans are hardly likely to be chuffed that Zayatte earns 4 x the average NPC centre half (how does Pearson know what that is?) although maybe that's his aim?

Very interesting stuff though and would've been fascinating to see what the reaction had been if we'd put something similar out when Britton left.
 
I think this is a good idea, obviously we have a number of ways to communicate with fans. The programme notes are one of these ways, but it only works if people buy the programme.

So good on Hull for distributing this on email as well for added impact.

Foxy/ Linz, how about this suggestion for the club at the next Batho meeting.

The club could run some sort of competition to encourage people to register their emails with the club, so that they can extend the distribution.

Perhaps a competition to win one of 100 season tickets (in a stand and seat of your choice) just by registering your email would be a good start ;)
 
What he means is that Ipswich have got Bullard plus £25k per week off Hull if you look at it another way. As they have secured a £45k per week player for £20k per week.

Which numpty gave him such a long deal on those terms with no relegation clause when they were clearly a team who could go down in that period?
 
I think this is a good idea, obviously we have a number of ways to communicate with fans. The programme notes are one of these ways, but it only works if people buy the programme.

So good on Hull for distributing this on email as well for added impact.

Foxy/ Linz, how about this suggestion for the club at the next Batho meeting.

The club could run some sort of competition to encourage people to register their emails with the club, so that they can extend the distribution.

Perhaps a competition to win one of 100 season tickets (in a stand and seat of your choice) just by registering your email would be a good start ;)

To be fair they do send out a "weekly newsletter" type e-mail, to people who are registered as having bought tickets on-line (I presume that's where they've got my e-mail address from).

It's a bit shit and the sort of content above (or even some of interesting articles from the program) would be better.

I suspect they don't want to give away free content at the expense of program sales though.
 
To be fair they do send out a "weekly newsletter" type e-mail, to people who are registered as having bought tickets on-line (I presume that's where they've got my e-mail address from).

It's a bit shit and the sort of content above (or even some of interesting articles from the program) would be better.

I suspect they don't want to give away free content at the expense of program sales though.

Weekly? I haven't had one of those for a long time and I used to get regular emails from the club, albeit crap, marketing ones

I see your point on the free content, but i'm not saying to reproduce the full programme, just Birch's comments.
 
It's all well and good Pearson playing the victim card now, but he offered a 31-year old with a known knee-problem (Hodgson didn't even offer him a new deal at Fulham because of it) £40,000 a week for 4 years with no relly clause.
 
The only ever bit of ITK stuff I've ever been given was that he failed a medical twice and they still signed him.
 

What he means is that Ipswich have got Bullard plus £25k per week off Hull if you look at it another way. As they have secured a £45k per week player for £20k per week.

Which numpty gave him such a long deal on those terms with no relegation clause when they were clearly a team who could go down in that period?

That depends whether you see Bullard and his glass knees as a £45k per week player. Maybe in his prime, certainly not now. You could argue that Ipswich have got a £10k per week player off Hull for £20k per week.
 
Another thing which needs pointing out here is that despite all the cost cutting, Hull would be boned had the benefactors not come along. Things are a lot less clear at BDTBL because until McCabe actually cuts his ties, we'll never know quite how much he's put in and taken out.
 
Weekly? I haven't had one of those for a long time and I used to get regular emails from the club, albeit crap, marketing ones

I see your point on the free content, but i'm not saying to reproduce the full programme, just Birch's comments.

Looks like I get yours cus I get two!!
 
What he means is that Ipswich have got Bullard plus £25k per week off Hull if you look at it another way. As they have secured a £45k per week player for £20k per week.

Which numpty gave him such a long deal on those terms with no relegation clause when they were clearly a team who could go down in that period?

Was it Turry?
 
Interesting article from Everton's chief exec - taken from o/s

A Club in Meltdown?

The past fortnight has seen much speculation on the financial state of our Club. Our Accounts are later than usual, and although not late in any legal sense, I hate to say it, being later than prior years suits the agenda of a small minority of fans who seem intent on painting only the bleakest picture. According to the minority, it seems that late accounts can only mean one thing; Everton must be in ‘financial meltdown?' The Blues are set to go bust? Of course, it's simply not true. A couple of conversations I've had recently have highlighted some of the things being said.

A week last Saturday, before the Cup tie, I spoke to a couple of passionate and committed fans who asked me if I'd heard there was a demonstration planned. They offered to show me the texts going round to rally the fans. When I asked why there was a protest, the response was that fans think our Directors have sold all our assets and have pocketed the money. They then said the Chairman was guilty of repeatedly turning billionaires way. I sensed a degree of embarrassment in their voices. Both points are clearly crazy. Truly, the billionaire is yet to knock on the front door at Goodison. Truly, our longed-for Russian, sheik or our media mogul has NOT been put off by a ridiculous selling price. Further, as for ‘asset stripping', there are many club directors out there who pay themselves generous salaries and enjoy plenty of perks. Ours don't, not a penny in any salaries or expenses; not even the Chairman's record-breaking mobile phone bill!

After the Blackpool game on Saturday, I spoke to fans in the Joe Mercer lounge who questioned the lack of investment in players. Four players have left - Yakubu, Yobo, Vaughan and Piennar and, as I kept being reminded, no one has arrived. Of course, the first three have been loaned out with the blessing of the Manager and will either be back in the summer, or will generate us substantial transfer income. And I can assure you, we worked incredibly hard, for almost two years, to keep Pienaar, offering a lucrative new contract that in the end was rejected. My response was to pull out the team sheet; to look at the Manager's starting line-up, to look at the depth and quality on the bench. No one could deny it was an enviable team sheet. We had and we still have a great squad of players. A squad tied down for the long term. A squad enhanced by the acquisition and development of some great youngsters. Following long and considered discussion last summer with the Manager, a squad that the Board was prepared to commit to, and invest in. A squad, as we've all seen, that's capable of competing with the best.

Where the Money Goes

Whether we like it or not, it really is all about money. So where does our money go? The £50 million we get from Sky, or the £20 million we earn through gate receipts, or the new Kitbag deal? The simple facts are approaching 85p in every £1 we bring in, ends up one way or another at our training ground. From young prospects, to scouts, to medical support, to coaches and, of course to our first team squad, almost £70 million, out of our £80 million of income ends up at the Finch Farm complex. And quite right too. We wouldn't want it any other way.

Of course, we've plenty to show for our money. We have a great Academy and, according to almost every Evertonian, as I said above, the best Blues' squad in years; a squad we all believe will see us in Europe next season. That investment, and most specifically a player wage bill that's increased significantly over the past three seasons demonstrates one thing above all else and that's ambition. It shows Everton has a Board of Directors that wants, and pushes hard for success on the pitch. Surviving on what's left? Well that's quite a challenge. The remaining 15p has to go a very long way, supporting the ground, the pitch, our matchday operation, our ticket office etc., etc., etc.

Ambitious or Foolhardy?

Of course, fans want and deserve ambition. But, fans who are quick to criticise and look for failings are also quick to conveniently interpret ambition as financial mismanagement. If we don't invest, we lack ambition. When we do invest, we're putting the Club at risk! Not one we are going to win. It is fair to say however, that our pursuit of success has stretched our finances, something our Chairman hasn't shied away from saying on a regular basis. Spending every last penny strengthening the team has meant that we spend every day of every week looking to drive revenues and raise funds. It means financially, no one could ever describe us as cosy. But then again, very few clubs are particularly comfortable. In football, if you're not pushing finances hard, why aren't you? And, when you push hard in today's financial climate, auditors want more assurances and lenders want more comfort. Over the past two or three weeks, that's exactly where we've been. But that's also where many Clubs are, indeed that's where many businesses are; in a financial world with a very different outlook and with a new set of rules.

What the Accounts Say

I'm pleased to say our accounts are now signed off, with a clean audit report. They have been published this week and show total income, in tough times, that has remained at £80m. However, away from income driven by on field performances -by league position and cup progress, other revenues increased. Matchday revenue per game held-up well with increased season ticket numbers and higher average attendances, albeit in 2009/10 we missed out on a Cup run which saw a small decrease in total receipts, and our sponsorship money improved with the new Kitbag deal. Costs also increased, and rose more rapidly than income. With further investment in player wages, - specifically, Heitinga, Distin and Bilyaletdinov replacing Lescott, our wage to turnover ratio increased. It's still under 70% and if we included our shop turnover and our catering revenues (neither is included in our accounts as they are both operated by third parties), the wage/turnover ratio remains under 65%. And did we make a profit? taking total costs from total revenues, we made a small operating loss - the measure of how we're performing before player trading.

Football balance sheets are unusual and unlike most other businesses. In our case, as a result of accounting convention, Jack Rodwell, Tim Cahill, Mikel Arteta, Seamus Coleman and many more players are recorded at or near to nil value and certainly way below market value. As far as our published balance sheet goes, our assets are hugely undervalued. Our debts, however, are recorded in full. I think we'd all agree the most important number on the balance sheet is total debt and at May 2010, our accounting period end, total debt was £48m (£41m in 2009), an increase explained by the continued investment in players and a rising player wage bill.

Debt needs to be managed and ultimately repaid and it should be recognised and acknowledged that Everton has a strong finance team and the long term support of our bankers and lenders. Specifically, the Club has built and benefited from an eight year relationship with our bank, a partnership which is founded on the strength of the management team at Goodison, the stability in our Boardroom and two decades of top flight experience ‘racked up' by a Chairman and Manager envied across the Game.

Changes to Auto Cup

To finish, some evidence of how we do listen to our fans and make changes that are right for the Club and its supporters. After trying again to satisfy too many fans with too few tickets for our Third Round tie at Scunthorpe United, you asked us to review our Auto Cup scheme. Whilst there are merits to the scheme, and it was very easy to join, it is clear to us that the scheme allowed fans to jump the loyalty queue. As I said at the time, our aim on every occasion when tickets are scarce is that tickets go to fans who, ‘rain or shine', don't miss games. Fans who'd been to Brentford were missing out to fans who'd simply ticked a box. As a result, next season Auto Cup will be dropped for away Cup games.

As I hope you all know, our doors are always open to suggestions which will improve the Club and allow us to ‘do the right thing'. Our Fans Forum is now bigger, has wider representation, and meets on a regular basis. Our recent Supporters' Clubs visits have included Wrexham and Southport, with Netherton, Milton Keynes and Dublin around the corner. I have a meeting with the Shareholders' Association in a fortnight's time and I'm meeting a couple of fans on an individual basis who want to discuss away game issues. Fans, quite rightly, shape our decisions. The door is always open.

And Forward as One Team

I am a firm believer that anyone who buys a ticket has the right to voice his or her opinions and should be listened to. Everton respects the views of its fans and has demonstrated time and time again that we listen, we ‘front up' and we tell it straight. We don't want sterile debate, we don't wish to muffle our critics and we do want to be kept on our toes. But, I hope you'd agree with me, criticism should be positive, it should be fair and above all, should be for the long term good of Everton Football Club.
 

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