• This is default featured slide 1 title

    Go to Blogger edit html and find these sentences.Now replace these sentences with your own descriptions.This theme is Bloggerized by Lasantha Bandara - Premiumbloggertemplates.com.

  • This is default featured slide 2 title

    Go to Blogger edit html and find these sentences.Now replace these sentences with your own descriptions.This theme is Bloggerized by Lasantha Bandara - Premiumbloggertemplates.com.

  • This is default featured slide 3 title

    Go to Blogger edit html and find these sentences.Now replace these sentences with your own descriptions.This theme is Bloggerized by Lasantha Bandara - Premiumbloggertemplates.com.

  • This is default featured slide 4 title

    Go to Blogger edit html and find these sentences.Now replace these sentences with your own descriptions.This theme is Bloggerized by Lasantha Bandara - Premiumbloggertemplates.com.

  • This is default featured slide 5 title

    Go to Blogger edit html and find these sentences.Now replace these sentences with your own descriptions.This theme is Bloggerized by Lasantha Bandara - Premiumbloggertemplates.com.

Thursday, September 15, 2011

Everton - No Blue Skies


Football fans are rarely happy. After all, there are only so many trophies that can be won, so the majority of teams will end the season empty handed. That said, Everton’s fans seem to be particularly despondent these days, so much so that a coalition of supporters’ groups known as the Blue Union initiated a protest march before last week’s home game against Aston Villa.

Their principal complaint is that the club is stagnating under the current ownership, but their objective is rather more sophisticated than the customary “sack the board” knee-jerk reaction to adversity of crowds the world over. Instead, this campaign is more about freeing up Everton’s executives to focus on operational issues, such as growing revenue and cutting costs, while a “fully autonomous group of professional individuals” is brought in to expedite the sale of the club to a buyer who can drive the club forward.

Everton have effectively been on the market for many years, but the chairman Bill Kenwright has so far failed to attract the new investment that the club so badly needs. Therefore, the Blue Union’s suggestion is that the club introduces a similar arrangement to the one that (eventually) worked at neighbours Liverpool, when independent chairman Martin Broughton identified John W. Henry as the Reds’ potential saviour.

"Phil Jagielka prays for investment"

Specifically, they are not seeking Kenwright’s departure, though this would not have come as a complete surprise after details of their extraordinary meeting with the chairman were published. Even if the release of a detailed transcript of a private meeting was ethically dubious, it was to a large extent justified by Kenwright’s admission that the club’s financial situation was every bit as bad as many fans had feared.

Although this was nothing new to seasoned observers of Everton’s finances, the explicit revelation that the bank had forced the club to reduce its overdraft facility and was effectively preventing manager David Moyes from signing new players was still shocking news. Indeed, Kenwright confirmed that the proceeds from the sale of players and the club’s old training ground at Bellefield had gone towards reducing the club’s £45 million debt.

Kenwright is clearly a genuine Everton fan, but at times he seemed completely out of his depth during the discussion. Not only was he vague about the long-standing issue of a new stadium, but he was essentially clueless about the club’s financials. OK, maybe that’s a bit too harsh, but he was clearly confused and really should know a great deal more after so many years as chairman.

"Tim Cahill - up for the fight"

In fairness to Kenwright, in the past he has appreciated the main issue facing Everton, which is how to keep the team challenging at the top end of the Premier League without new investment. However, his strategy, for want of a better word, has seemingly consisted of little more than relying on David Moyes to continue to work minor miracles on a shoestring budget.

With some justification, Kenwright calls Moyes “the most important figure at the club”, describing him as “a manager who will go down as one of our all time greats.” Moyes himself is proud of his achievements, pointing out that in the 10 years he has been at the club, Everton have finished in the top 10 seven times. In fact, they have done rather better than that under his guidance, as his record includes two fifth places and a memorable fourth place in 2004/05, when the team qualified for the Champions League.

However, although Moyes refuted the fans’ charge of stagnation, even he admitted that he was operating under severe financial constraints, “Of course we want to be top of the league and winning cups, but at our club, we have got a level of finances, wages we can pay and stuff that we can do. We try and then get the best team and the best performances we can out of the players we have got.” It is fair to say that Moyes has got the most out of his resources, consistently outperforming teams that have spent more.

"David Moyes - a lot on his mind"

However, these results are slim pickings to a “grand old team” with Everton’s fine tradition. Only Arsenal have a longer unbroken spell in the top flight than the Blues, who have won the old First Division nine times, the FA Cup (when it meant something) five times and the European Cup-Winners Cup once. Four of those trophies came during a memorable period between 1984 and 1987, but the problem is that even though this might seem like yesterday to Everton supporters, it is nearly 25 years ago.

Since the introduction of the Premier League in 1992, Everton have struggled to live up to their glorious past, only winning the FA Cup in 1995. After the death of former owner John Moores, the club began to struggle both on and off the pitch. The Moores family shareholding was bought in 1994 by Peter Johnson, whose tenure was fairly disastrous with the club frequently involved in a fight against relegation.

Five years later, leading theatrical producer Bill Kenwright headed a consortium named True Blue Holdings Limited that bought the club in a deal that valued it at £30 million, though the source of the funds has never been completely clear. A series of ugly boardroom disputes ensued between Kenwright and fellow directors, Paul and Anita Gregg. Both sides tried to win over the Everton fans with ambitious investment plans, Kenwright’s version entitled the Fortress Sports Fund, but neither of these came to fruition. Finally, in 2006 the Greggs sold their shares to the entrepreneur Robert Earl, a friend of Kenwright, but all the infighting took its toll.

While professing to provide Moyes with “every available penny”, the reality is that the level of funds available to the manager has been diminishing. Indeed, the net spend has been negative over the last three seasons, adding up to £20 million sales proceeds. During the meeting with the Blue Union, Kenwright said, “On average, we give him £5.6 million every year. Nine years – that's £45 million.” Leaving aside the appalling arithmetic, that’s palpably incorrect in recent times.

In fairness to Everton’s board, they did break the club’s transfer record three times between 2006 and 2008: first for speedy striker Andrew Johnson £8.6 million, then Nigerian international Yakubu £11.25 million and finally powerful Belgian midfielder Marouane Fellaini £15 million.

However, since then Moyes has had to sell to buy. Everton’s last major splurge came in the summer of 2009 as the £22 million proceeds from Joleon Lescott’s transfer to Manchester City was spent on Diniyar Bilyaletdinov £10 million, Johnny Heitinga £6 million and Sylvain Distin £4 million.

Everton’s chief executive, Robert Elstone, summed up the club’s approach, “We have to be astute in the transfer market and the manager and the chairman have a good record in doing that.” He’s not kidding, when you consider that Moyes managed to secure the services of Tim Cahill, Mikel Arteta, Phil Jagielka, Steven Pienaar and Seamus Coleman for less than £10 million in total.

However, the lack of activity has become really pronounced in the last two years with only Newcastle having a lower net spend than Everton in the Premier League over that period – and that was largely due to the extraordinary £35 million sale of Andy Carroll to Liverpool. No wonder that Elstone drily observed, “It is fair to say we have not got a big transfer war chest. I can’t see us smashing our record transfer fee on a regular basis.” Quite.

In fact, even the three sides just promoted from the Championship have comfortably outspent Everton. Closer to home, it must be especially galling that Liverpool have splashed out well over £100 million on new players in 2011. In stark contrast, Everton have seen the departures of Pienaar, Arteta, Yakubu, Jermaine Beckford and James Vaughan since the turn of the year, with only a couple of loan signings coming the other way: Dutch misfit Royston Drenthe and unheralded Argentine strike Denis Stracqualursi.

Moyes confessed his concerns after yet another frugal transfer window, “It will be really difficult to finish in the top 10. I think we are going to have a big struggle. Look at the spending of Stoke, Sunderland, Fulham and West Bromwich Albion.” The only positive to take was that they did not also lose Jagielka, Fellaini and coveted left-back Leighton Baines.

Although Everton’s financial problems may not have attracted the media coverage of some other clubs, the fact is that their business model is bust. Essentially, their strategy has been to run the club at a loss every year in a gamble to achieve success and to fund this by steadily increasing their debt, but now the banks have stopped extending them credit.

It is not too difficult to see why they have made this decision, as Everton’s profit and loss account looks simply awful. Even with healthy turnover of £79 million, they reported a loss of £3 million. In fact, they have only managed to record a profit once in the last eight years – and that was only due to Wayne Rooney’s big money transfer to Manchester United in 2004/05.

Since “Wazza” was sacrificed, the club has suffered £30 million of cumulative losses: 2006 £11 million, 2007 – £9 million, 2008 – zero, 2009 – £7 million, 2010 – £3 million. Over half of that has been due to interest payments, which have risen to £4.5 million in 2010. However, the fundamental problem is that cost growth is significantly outpacing revenue growth. The trend is clear with EBITDA (Earnings Before Interest, Taxation, Depreciation and Amortisation) declining from £12 million in 2005 to just £1 million in 2010.

Once non-cash items like player amortisation and depreciation are included, we can observe the deterioration in operating profits, which were at break-even in 2005, but are now showing a hefty loss of £18 million in 2010. In that period, revenue has grown by £19 million (32%) from £60 million to £79 million, while total expenses have shot up by £37 million (61%) from the same level of £60 million to £97 million. The situation is actually even worse than that, as revenue has hardly grown in the last two years, while the cost growth shows no sign of slowing down.

On the face of it, last season’s £3 million loss does not look too bad, but this would have been much worse without the benefit of £19 million profit on player sales, almost entirely due to Lescott’s departure. Without that once-off boost, the 2010 loss would have been a truly depressing £22 million.

Player sales have had a disproportionate impact on the club’s results for many years, contributing £59 million profit since 2005. In other words, the losses would have been even higher if the club had not been selling players. The impact was most obvious in 2005 when Rooney’s sale resulted in a net profit of £23m, but you can also see its importance the following year when the club reported an overall loss of £11 million, as there was no profit from player sales.

As operating losses have increased since then, the importance of player sales becomes even more evident. The key point is that if Everton do not repeat player sales at the same level as 2010, namely around £20 million, then it is extremely doubtful that they will break-even in future. This is unlikely to be music to the ears of Everton fans, but it’s a harsh reality.

Given the above, it might seem a little bizarre that chief executive Robert Elstone said that this was “a healthy set of accounts”, but in comparison with some other clubs, you can sort of see what he means. Everton are by no means the only football club that struggles to balance its books and their loss of £3 million in 2009/10 actually made them one of the better financial performers in the Premier League.

In fact, just four clubs were profitable that season (Arsenal £56 million, Wolverhampton Wanderers £9 million, WBA £0.5 million and Birmingham City £0.1 million), while only one club (Blackburn Rovers) made a smaller loss than Everton. Half of the Premier League made losses over £15 million, while the losses at the clubs that finished in the top three places in 2010/11 were stratospheric: Manchester City £121 million, Manchester United £80 million and Chelsea £70 million. However, the difference between those clubs and Everton is that their owners have largely covered these losses.

Everton’s revenue of £79 million places them in a slightly strange position. On the one hand, this is the eighth highest in England and only one position behind Aston Villa, who enjoy the 20th largest revenue in Europe, according to the Deloitte Money League.

On the other hand, the problem is that their revenue lags way behind other major clubs. It’s significantly behind the so-called “Sky Four” (Manchester United £286 million, Arsenal £224 million, Chelsea £201 million and Liverpool £185 million), who benefited from Champions League riches in 2009/10, but it’s also a fair bit below Everton’s natural challengers (Manchester City £125 million, Tottenham £120 million and Aston Villa £90 million) with the gap expected to grow still wider when the 2010/11 results are published.

This disparity is important, as money tends to equate to success in football. For example, in 2009/10 the seven clubs that finished ahead of Everton in the Premier League were exactly the same as those above them in the Money League. Arguably, Everton could be described as being the “best of the rest”, though their revenue was only £3 million higher than Fulham’s.

The other major issue with Everton’s revenue is that it is not really growing. Elstone recently boasted, “We have signed record sponsorship deals and hugely increased our income”, but the reality is that any growth is almost entirely due to broadcasting revenue. This has risen from £28 million in 2007 to £50 million in 2010, but this has little to do with the club, being almost entirely due to the distributions from the collective sale of Premier League TV rights.

Those revenue streams under the club’s control have essentially remained flat for the last three seasons with commercial income growing slightly from £9 million to £10 million and gate receipts actually falling from £20 million to £19 million. This means that Everton, like many of the clubs in the Premier League, have become very reliant on television money, which now represents 63% of their total income.

In 2010 Everton’s TV revenue of £50 million largely consisted of £43 million from the Premier League plus £4.2 million for reaching the last 32 in the Europa League. The Premier League distribution has risen every time a new three-year deal is signed, as can be seen by the substantial increase in 2008, and there will be a similar £7 million increase in 2011 to just under £50 million, mainly due to the substantial increase in overseas rights.

Given its importance to Everton’s revenue, it is worth understanding how the Premier League allocation works. Each club gets an equal share of 50% of the domestic rights (£13.8 million) and 100% of the overseas rights (£17.9 million). However, facility fees (25% of domestic rights) depend on how many times each club is broadcast live, which hurts Everton, as they were only shown 13 times, a lot less than other clubs. This meant that they received £7.3 million, compared to Manchester United’s £13.5 million. Finally, merit payments (25% of domestic rights) are worth £757,000 per place in the table, leading to £10.6 million for Everton’s seventh position.

Of course, Everton’s 2010/11 TV money will be adversely impacted by the lack of European competition, though it’s only Champions League teams that receive the big bucks, e.g. last season the four English entrants boosted their coffers by an average of £35 million. Although the money was not so high 20 years ago, the ban on English clubs following the Heysel tragedy has undoubtedly cost Everton dearly. In fact, in his own slightly chaotic fashion, Kenwright pinpointed this issue in his chat with the supporters, “You can see the problem in football. United, Arsenal, Chelsea, they get double our TV money, placement money plus Champions League.”

Of course, that’s not Everton’s only problem, as can easily be seen by looking at their mach day revenue of £20 million, which is about one-fifth of Manchester United and Arsenal. Fair enough, their stadiums are considerably larger than Goodison Park, whose capacity is only 40,600. However, Anfield is not that much larger and Liverpool still earn more than twice as much as Everton. Even more striking is that Spurs generate nearly double Everton’s gate receipts, though their ground is actually smaller.

Looked at another way, each home game at Everton produces less than £750,000, compared to more than £3.5 million at United and Arsenal, despite what Kenwright described as a “magnificent level of support.” Average attendances have indeed held reasonably steady, though they did fall to 36,039 in 2010/11, but it’s the lack of decent corporate facilities that has really hurt Everton’s match day income, which actually fell £3 million in 2010 to £19 million. Even though there were three more home games, the previous season included a fair bit of money for the run to the FA Cup Final.

Although Everton have improved their commercial operations in the last few years, the revenue remains fairly feeble at £10 million. To place that into perspective, this is less than a third of Tottenham’s £32 million. Although the club complained that it was difficult to compete commercially with clubs “regarded as having a greater international profile”, such as Manchester United, Liverpool and Arsenal, Everton are surely at least as attractive a proposition as clubs like Spurs and Villa.

To be fair, the club outsourced its merchandising and catering operations in 2006 and its retail business to Kitbag in 2009, which means that their reported income is around £7 million lower than it would be if these activities were still in-house, but the relatively small sponsorship deals should still be questioned.

Everton have enjoyed a long-term shirt sponsorship deal with Chang Beer, which has been extended no fewer than four times, the latest running until 2014. This increased the annual payment from £2.6 million to £4 million (partly performance-related), but this is still only half as much as Aston Villa’s new £8 million deal with Genting and a lot less than Tottenham’s £10 million deal with Auresma. Of course, Liverpool and Manchester United are in a different commercial league altogether with their deals worth £20 million per annum.

The 10-year Kitbag deal is expected to generate more than £30 million over the duration of the contract. As part of the agreement, Everton switched kit suppliers from Umbro to Le Coq Sportif, the brand worn by the team during one of its most successful season in 1984/85, which should generate a further £3 million. This also led to the refurbishment of the megastore opposite Goodison and the Everton Two store, which boasts the inspired address of “Everton Two, Liverpool One”, as the latter is the name of its shopping complex location.

Like all other football clubs, the main reason for the cost growth is the wage bill, which has surged 76% (£23 million) from £31 million in 2005 to £54 million in 2010. This has caused the crucial wages to turnover ratio to rise during this period from 51% to an uncomfortable 69%, which is only just below UEFA’s recommended upper limit of 70%, though it would come down to “only” 64% if the outsourced operations were included in the club’s turnover.

Elstone commented that this “simply serves to underline our commitment to both signing the best available players and to securing the long-term future of those already at the club.” In 2009/10 Everton effectively replaced one international player (Lescott) with three arrivals (Bilyaletdinov, Distin and Heitinga), so had to cover two new salaries plus the loan cost of Landon Donovan. In addition, there were new contracts for Louis Saha, Tim Howard, Jack Rodwell, Joseph Yobo and Phil Jagielka.

There’s no doubt that it would be difficult for any club to remain competitive without participating in the salary “arms’ race”, a point that Moyes stressed in the summer of 2010, when he warned the directors that Everton risked losing their key players unless they broke the wage structure. This led to more contract extensions for Mikel Arteta, Tim Cahill, Leighton Baines, Seamus Coleman and Victor Anichebe. Arteta’s salary alone was reported to have increased from £45,000 to £75,000 a week.

It is therefore likely that the wage bill for 2010/11 will show a further increase (the Blue Union is estimating £58 million), before falling the following season due to numerous player departures and loans.

In fairness, Everton’s wages of £54 million are nowhere near the highest in the Premier League with five teams having wage bills more than twice that level: Chelsea £173 million, Manchester City £133 million, Manchester United £132 million, Liverpool £114 million and Arsenal £111 million. Other teams challenging for Europa League places also pay a lot more, such as Aston Villa £80 million and Tottenham £67 million. In short, Everton’s wage bill could be described as mid-table, so any league placing higher than this should be considered a bonus.

The other aspect of player costs, namely amortisation, has also been rising – from £10 million in 2007 to £17 million in 2010. When a new players is bought, football clubs do not write-off the cost immediately, but instead book it onto the balance sheet as an intangible asset and write it off over the length of the contract, as the assumption is that the player would have no value after his contract expires, since he could then leave on a “free”.

As an example, John Heitinga was bought for £6 million in 2009 on a 5-year contract, so £1.2 million amortisation is booked to the accounts in each of the next five years. Over time amortisation costs can have a real impact, which is what has happened at Everton. The 2010 charge of £17 million might be low compared to a big spending club like Manchester City (£71 million), but it’s a lot in the context of Everton’s £79 million revenue, though it’s likely to fall following the lack of transfer activity.

Everton’s other operating costs of £24 million are a similar level to Tottenham £27 million and Aston Villa £25 million, but they seem very high in relation to the size of the club. They represent 25% of total costs, only surpassed by Arsenal (due to the Emirates effect) among the leading eight clubs, and 30% of revenue, only below Manchester City, whose ratio will fall following their certain revenue growth.

The massive increase from £12 million in 2007 to £21 million in 2008 is unexplained, though it should be noted that theses costs averaged £17 million in 2005 and 2006. Part of the rise is certainly due to higher expenses at the Finch Farm training facility compared to Bellefield, but the lease here is no higher than £1.5 million. Kenwright did not exactly clear up the ambiguity of what is included here, when the Blue Union put the question to him, “When you say other operating costs what do you mean? I don’t know, I have no idea.”

The chairman was equally vague last year when discussing the club’s debt, “I do not understand why football clubs have such big debts, it is a mystery. Our debt is a big debt and a worrying debt, but it is manageable because of our performance on the field… but it is too much debt that every year is going to be added to.” That part’s certainly true, as the net debt has more than doubled from £20 million in 2005 to £45 million in 2010. It rose £7 million last year alone.

The debt has been rising because the club has been spending money that it does not have on strengthening the team. As Elstone put it, “our pursuit of success has stretched our finances.” The result of this risky strategy is clear to see, as the club is burdened with a 25-year loan from Bear Sterns (now at £25 million), which has the advantage of being long-term, but carries a high interest-rate of 7.79%, leading to annual payments of £2.8 million. The only way that Everton can manage to pay this is by increasing its bank debt, so the club has built up bank loans of £17 million and an overdraft of £5 million.

Although Everton’s debt is by no means excessive compared to other football clubs, the problem is that they appear to have no realistic way of paying it off. That is why the bank has capped the club’s overdraft at £25 million, which has meant that the £8 million received for the sale of Bellefield last December and the proceeds from this year’s player sales have gone directly to the bank.

"Tim Howard - shout, shout, let it all out"

Furthermore, the loans are covered by the securitisation of future revenue (TV money and ticket sales). The accounts also note a potential sting in the tail with up to £12 million of contingent liabilities for transfers, which are payable dependent on future appearances and loyalty bonuses.

Everton’s total liabilities are actually £95 million, leading to net liabilities of £30 million, so £50 million of value has been lost in just over a decade, as the balance sheet had net assets of £19 million in 1999. Most of the club’s assets have been sold off, which also increases costs for higher rents, while Goodison’s value is declining.

The only substantial assets left are the players themselves with a book value of £45 million, though Elstone points out that accounting conventions mean that players are recorded in the balance sheet way below market value. This is certainly true, especially as nothing has been included for home grown players, and the respected Transfermarkt website lists a value of £120 million. However, the problem is that for the club to access that value, they would have to sell those players.

The cash flow statement underlines the fundamental problems with Everton’s business model, as the cash flow has been negative for the last five years. Take last year, when the club’s revenue was just about at record levels, they sold Lescott for an incredible £22 million, they took out net new loans of £6 million – and yet there was still a net cash outflow of £1 million.

So is there anything that Everton can do? Is there a blueprint for success?

I can see five possibilities: (a) be successful on the pitch; (b) cut costs; (c) build a new stadium; (d) find a wealthy benefactor; (e) focus on youth.

"Marouane Fellaini has a hair-raising experience"

(a) As we have seen, higher places in the Premier League produce higher merit payments, but to make a meaningful difference to the revenue, Everton would have to qualify for the Champions League on a regular basis. Although they have managed that once during Moyes’ tenure, thus proving that it’s not impossible, this objective seems further away than ever today with the traditional “Big Four” being supplemented by Manchester City and Spurs.

Furthermore, fourth place does not guarantee qualification to the lucrative group stages, but only to a qualifying match, where the luck of the draw plays a huge part. Everton would be only too aware of that, as they were (unluckily) eliminated by Villarreal in such a tie in 2005.

(b) All football clubs could cut costs, but this approach would almost certainly condemn Everton to a regular struggle against relegation. To achieve break-even, Everton would have to reduce the cost base by £15 million, assuming that £10 million profit is made on player sales each year.

Assuming that operating expenses are reasonably fixed, that would mean cutting the wage bill by nearly 30% to £39 million. Only three clubs had a lower wage bill that that in the 2009/10 Premier League – and two of those were relegated. If Moyes has been fighting with one arm tied behind his back up to now, this would be tantamount to also binding his legs together.

(c) A new stadium would help address the low match day income, but it appears no closer now than when the search first started 15 years ago. A proposal to build a stadium as part of the King’s Dock regeneration was scrapped in 2003 when the club failed to raise sufficient money, while the government rejected the planning application to build a new 55,000 capacity ground as part of a retail park in Kirkby, on the outskirts of Liverpool.

On the face of it, this was a real blow to the club, as they had been putting all their energies into this scheme with former chief executive Keith Wyness going so far as to describe it as “the deal of the century”, because Tesco were going to pay a proportion of the construction costs, leaving Everton to fund the remainder by selling Goodison Park and Bellefield and charging for naming rights at the new stadium.

However, the rejection might just have been a blessing in disguise, as many fans never warmed to the idea of moving to Kirkby, prompting the formation of the “Keep Everton In Our City” (KEIOC) campaign. In addition, the financials did not seem to add up, as the assumptions behind the funding looked optimistic, while a study performed by Deloitte on behalf of Everton estimated a paltry £6 million extra profit a year and that was based on the club almost filling the 50,000 stadium every match.

"A man of Distin-ction"

The focus appeared to have switched to improving Goodison, especially after the announcement of a £9 million office and retail development, funded by partners, that will free up space inside the stadium for profitable corporate facilities. Elstone admitted that it was unrealistic to expect the club to be inside a new stadium within five years, later adding, “there is a shortage of a viable funding model”, which had always been obvious to most rational analysts.

However, to the surprise of nobody, this viewpoint was contradicted by Kenwright, who recently said, “There are six sites we’re looking at, three of which we’re really keen on: Edge Lane, Speke and another one.” Even with the support of Liverpool Council, who have proposed using the rapid transit Merseyrail line to ease transport access, the only viable way forward for a new stadium would be if a new owner were prepared to fund the construction.

(d) Although Bill Kenwright might be a great bloke, as he admitted himself, he is “a pauper when it comes to other chairmen.” The harsh reality is that the current owners have not put any money into Everton football club, which is in stark contrast to other benevolent owners, e.g. £187 million at Fulham, £115 million at Sunderland, £85 million at Bolton, £52 million at Wigan and £43 million at Stoke.

"Bill Kenwright - True Blue"

In the last annual report, Kenwright stated, “I continue to work tirelessly to find that rich and generous benefactor”, but he has been looking to attract other investors for years without success. He maintains that “no-one can sell the club better than me”, despite all evidence to the contrary, such as the recent admission that Everton allowed one potential investor to conduct due diligence in the belief that he was the head of ICI in the Far East, even though that company was taken over three years ago.

Some have questioned whether Kenwright is actually serious about selling the club, but, in fairness, there are many clubs searching for a benefactor and the tough economic climate has not helped.

Even David Moyes has got involved, suggesting that Everton would be an attractive investment, as they “could be very close to being very good for not an awful lot of outlay. It might not be one of those clubs that needs £300-400 million to turn it around.”

"Seamus Coleman - he's mustard"

He might have a point, but to do the job properly would require investors with very deep pockets. First, they would have to buy out the directors’ shares, which an investment bank estimated would cost £75 million, but they would also have to repay the loans £45 million, fund a new stadium £250 million, buy new players £50 million and inject working capital to cover losses £50 million. That doesn’t leave much change from half a billion.

(e) Probably the most realistic policy would be to focus on developing young players at the technically advanced Finch Farm academy, counting on profitable sales at a later stage. Everton are renowned for having a brilliant youth system that has produced the likes of Rooney, Rodwell and Ross Barkley. As Moyes pointed out, the flip side of not spending money on buying new players is that youngsters will always get an opportunity at Goodison.

Clearly, a selling policy would not prove universally popular with the fans, but it is not necessarily a negative strategy, as plenty of clubs have flourished by adopting such a business model, e.g. Porto, Lyon and Udinese. The other advantage for Everton is that they are quite close to operating this way in any case. At least it would be more under their control, rather than crossing their fingers and hoping for a new owner and/or stadium.

"Ross Barkley - here's to future days"

For many years, Everton under Moyes have been punching above their weight, but even the manager has embraced a new sense of caution, suggesting that it would be “a struggle” for his team to finish in the top half of the table this season. He added, “We have to be careful in what we believe Everton are capable of achieving.”

No matter how much Everton’s passionate following wants the club to return to its former glories, this will be virtually impossible unless there is a dramatic improvement in the financial position. The fans really do deserve better from the board: a clear, coherent strategy would be a step in the right direction.

Share:

Tuesday, September 13, 2011

Can you see the REAL reason behind today's economy crisis ?

Sub Prime crisis is not new now, most people would know why it happens, this is just another video about it.  But I am just curious how many of us can answer this question ...

First watch this video if you don't know why sub prime crisis happen ( the reason that triggers today world economy collapse ! )



In short, it says ...

  • home owner buy a $100k house but has no money
  • home owner borrow money from lender by mortgaging the house to the lender
  • home owner has to pay $200k to the lender in 30 years
  • investment banker get loan and buy the mortgage from the lender for $220k
  • investment banker turns the mortgages into another finance tool
  • investment banker sell this finance tool to investors
  • investors get good returns
  • investment banker receive money from investors and home owner, pay his loan and still earn
  • if home owner default in payment, investment banker take the house, resell to another home owner
  • cycle continues, almost everyone earns except the defaulters, which is really their own faults.
Now, the video says the turning point is when we start to sell the house to the sub-prime home owners, which are the people who are less rich and most likely unable to repay their debts.  But what do you think ? What has really gone wrong in this cycle ?

Understand this truly may open our eyes to recognize the fact that not only properties, but almost everywhere in today's finance ecology, similar 'time bombs' are being created and rebuilt every single day.

What do you think has really gone wrong in above point by point list of narration ?
Share:

Saturday, September 10, 2011

GST : What can we do ?

Some said GST is good, some not.  The myth how we pay less tax and yet government can earn more money has already been answered.  But GST is coming regardless, so what can we do ?  If you haven't related the answer from "the prefect world" article yet, then may be this article may help ...




Everyone who wants to adapt to GST need to produce REAL values to the people by large around his society.

In business we will need to sell something that people really need instead of just manipulating and deceiving the market.  When you provide what people really need, GST actually helps you reduce cost, hence your profit goes up without even raising your selling price.  If you are too creative in what you are selling, you will have to increase your price to keep what you are earning now when GST comes.  You will have to harvest more money from the public without giving them any extra values.  You just provide value with the few parties you make deal with, just like the primary school friend of the fisherman story.

In addition to that, you should create your own merchandise or at least shorten the distribution channel as much as possible ie. import the goods yourself.  Before GST, importing the goods yourself may mean extra profits but with GST in place, importing directly is essential for survival.  The best is to 'produce' your own goods.  For example, I buy seeds and soil to grow my own papaya which is extra juicy naturally.  The seeds and soil may be the same as all my competitors but 'the way' I grow my papaya is unique.  If general public like that, I have created value directly.  GST will be in favour of me in this case.  This is significantly different than the typical trading business ie. I bought a papaya from central market and sell it in my village.

If you are just having a job, then there is less you can do to combat with GST.  In short, GST will still drive inflation up and your 'saving' will have a higher return target (saving return should be higher than inflation).  If you don't think your next few years job earning can increase 4-6% annually, then this is the time you seriously think what real values you can produce for the people around you;  be it still within the job market or starting your own business.

If all of us are creating values for each other, implementation of GST will be in favour of us.  We should all seriously think about that and start making something of our own be it making cloth, growing food, making shelters or transport.

Creating a self sustain eco system within yourself will seal yourself from any negative effect of GST.  This can be done in a small way, ie, within your families, friends or just neighbours and villages.


Consuming wise, if you see price hike due to GST without any additional values, you should now very well aware that it is because that business is NOT well managed or there are some cronyism within that business.

So what value are you going to add to your community to seal yourself from GST ?  Or will you just sit through complaining about this one as well ?

This article was suppose to be read in this sequence.




Share:

Friday, September 9, 2011

Interview : Self


Questions
  1. Tell us a bit about your childhood and how it affects your today's practice on personal finance ?
    There was once I was slapped real hard until my whole body fly toward the wall, so till now one of my ears is half deaf.  I learned that not everything can be undone.  We have to be careful not to let our emotion/feeling drive us over the edge.  Which turns out to be a very valuable blue print in my stock investment.
    Since teenage I was influenced to save in mutual fund.  That has helped me survive through my varies business cycles 20+ years later.  DCA does work especially when we just get started.
    During the first year of my high school, a classmate helped save a fire.  Then a broken electric cable fell upon his body and he died.  I learned that sometimes life is bigger than ourselves.  So I knew since young personal finance is never about the money, its about what we want in life.
    His father was an illegal immigrant but we never felt any indifference.  I also learn that all being in universe always share some similarities while each one of us is unique.  Same goes to PF, you can think and do whatever you want but at the end, we are most probably going through a similar path.
  2. Answer this question without checking or asking for references : If you can remember, what is your Zodiac and Astrology signs ?
    Rat Aquarius.
  3. What are the things you like to do during your free time, ie. your hobbies ? And what do you most dislike about ?
    I like to find those impossible to solve challenges and then think, strategies and plan around them during my silent time.  I used to jog, basketball and badminton a lot.  But now I just walk wherever less than 5km and cycle wherever within 25km.
    I don't like myself when I think I am prefect - there is nothing else to live for !?
  4. What is your favorite colors and numbers ? Any most dislikes ?
    red, black, white.  I like 7.  I like dull color less, like my 10 years old over worn shirts.
  5. What is your favorite food ? What do you hate most ?
    tomyam, laksa, curry, salmon shashimi, beef noodle, lamb shank ... OMG !  Why did you get me started ?
    I don't like monkey brain may be !?  Never try before . . .
  6. If you can meet a person dead or alive, who would that be ? What would you ask him ?
    Mahathir : Deep down inside, do you really think current corruption status has absolutely nothing to do with what you have done or not done in the past ?
  7. What is the best and worst feeling you have ever had ?
    I feel excellent when the person I love most trust me fully without any doubt, appreciate my existence and companion.
    I am in hell when she felt the other way.
  8. What is the last thing you do before go to sleep ?
    I structure an unsolved question of the day to my mind and let my dream solve it.
  9. What is the first thing you do when you wake up ?
    What do I have to do today ?
  10. If you were to build a personal finance portfolio for a young man who has similar life path as yours, what will it be ?
    Build a portfolio according to malpf.com and then assign the right person to manage it.
  11. You met someone in a social party, describe what you do in 2 to 3 sentences.
    I turn your money from 1 to 2 in a way that you can accept it, personally or business wise.
  12. If you are not doing what you are doing now, what would you be doing ?
    A philosopher, a monk, robin hood, a cruel or loving king . . . all seems possible.
  13. How much time do you spend on your personal finance blog ?
    Averagely a couple hours a week I suppose except recently less active.
  14. What is the main objective of your blog, is it initially profit oriented and who are your targeted blog readers ?
    My objective is to share a side of personal finance story that I haven't found else where within the same blogsphere.  It is still NOT profit oriented.  I target to those who has the time to read through the whole article which is tough because most internet browsers just spend minutes on one article.  I don't know any other more suitable venue or medium yet.
  15. What is the biggest achievement your blog so far ?
    I left it for 2 years and it is still running ?  That is a big wow to me despite the low readership.  I guess at the end, content decides how far to drive a site !?
  16. Tell us one URL other than your own that your readers should read about ?
  17. How many more years do you think your blog will exist for and how do you plan to finance your blog forever if planned to at all ?
    malpf.com may die when I forget to renew the domain.
    malaysiaPersonalFinance.blogspot.com should live as long as Google lives which should be at least another 10 years ?  :)
    A trust deed (self growing fund) has been setup to keep it running but the mechanism of how to keep it running forever has not be exactly determined yet.  Eventually I also need to change the trustee to someone who really care about the topics I wrote about.
  18. The world is big, many people have different point of views and emotions. If you met someone who called you geek, liar, cheaters because you yourself didn't do what you preach, how would you handle them ?
    Sit down and listen to what his view point is.  Understand the true cause and motive behind it.  Then acknowledge him and assure him there are other people who think and feel like him too despite most of my readers are on the other side of the fence.  At last ask him how he would improve the situation if he were me.
    There is always something we can learn from, even the worst enemy ever or an ass hole.
  19. What do you think about these interview questions and how this interview session can be improved ?
    Nothing can replace a face to face interview.
  20. Would you be interested to meet other finance bloggers in person ? If yes
  • Do you smoke ?  No
  • Do you drink liquor socially ? Yes
  • Are you a coffee lover ? Yes
  • Where do you stay and work ? ( Country, State, Region etc.)  Malaysia KL
Share:

Thursday, September 8, 2011

Interview : Kris - knowthymoney.com


1.    Tell us a bit about your childhood and how it affects your today's practice on personal finance ?
I lead a moderate lifestyle during my childhood. My family is quite frugal and we don’t splurge on branded goods.(nowadays a lot of young people fell into this consumerism trap) Come to think of it, I guess I am fortunate that I did not suffer from any peer pressure during my school days as most of my classmates are quite moderate also even though some of them come from very wealthy families. Until now I don’t really get all the hype of wearing or using highly expensive branded goods just to feel “confident”. Confidence comes from within.
On personal finance perspective, I managed to save quite a high percentage of my salary over my working years. But one thing that my parents never thought me about is the importance of investing to make your money work for you. They are quite conservative investors. Nevertheless, they stressed the importance of education and hard-work to ensure an easy life in the future when I was growing up. One thing to note is that like most old traditional Chinese thinking, they discourages debt taking ,borrowing money to take advantage of the leverage when doing investments or even buying property. Of course too much leverage is hazardous but a good ratio of leverage really does wonders to your total net worth.
2.    Answer this question without checking or asking for references : If you can remember, what is your Zodiac and Astrology signs ?
Aries the so-called fiery ram. LOL..Although I don’t believe in astrological signs.
3.    What are the things you like to do during your free time, ie. your hobbies ? And what do you most dislike about ?
I like to read a lot during my spare time and listening to music while doing so. I dislike cutting my hair as I need to wait there doing nothing.
4.    What is your favorite colors and numbers ? Any most dislikes ?
Favorite color is blue.
5.    What is your favorite food ? What do you hate most ?
I like to eat noodles more than rice dishes.
6.    If you can meet a person dead or alive, who would that be ? What would you ask him ?
I would like to meet my paternal grandfather which I never had the chance to do so. My grandfather who came from China on a boat, without any family members, a few dollars in the pocket and no education manage to become one of the richest businessmen in a small town.(The first family to own a black & white television which is really a luxury item at that time in a small town) He started as an ordinary hawker selling goods on a floating boat to owning a grocery store business, a few shop-lots and plantations. But alas, the wealth preservation did not happen as he sold all the properties and business (no one wanted to continue the family business) when he reached old age and moved to a bigger town; leaving no wealth preservation plan & investments for the next generation. And with no investment, time erodes the family wealth. But luckily, all his children manage to receive good education because our family was one of the few that can afford it.
So if I were able to “go back to the future”, I want to hear his rags to riches story from his own mouth.
7.    What is the best and worst feeling you have ever had ?
Best feeling is to get good academic results in public examination after years of study. Worst feeling is getting diarrhea and food poisoning.
8.    What is the last thing you do before go to sleep ?
Read one of my books.
9.    What is the first thing you do when you wake up ?
Brush my teeth, refresh and get ready for work.
10. If you were to build a personal finance portfolio for a young man who has similar life path as yours, what will it be ?
Generate more passive income while you are still young and have mixed income portfolio consisting of property investments, dividend stocks and mutual funds. And have sufficient insurance and medical coverage to ensure your wealth will be preserved if anything happens. While young, a person must be brave enough to take a lot of calculated risks. (high risk high return kind of game, because you can afford to make mistakes. It is still okay to stumbled on small mistakes, just make sure you learn from it to avoid the big and grave personal finance mistakes) While in old age, one must be concerned on wealth preservation and guaranteed returns.  
At lastly the most important one is to invest oneself in terms of knowledge. Knowledge is power!!!
11. You met someone in a social party, describe what you do in 2 to 3 sentences.
Just say hi and see where we go from there.
12. If you are not doing what you are doing now, what would you be doing ?
I will probably become an academician. A professor perhaps?
13. How much time do you spend on your personal finance blog ?
I read a lot of financial articles online and will blog on related topics that comes into my mind.
14. What is the main objective of your blog, is it initially profit oriented and who are your targeted blog readers ?
The objective of my blog is to encourage more people to share their experiences and knowledge in the personal finance field. There is a lot of more “niche” information that is only available to a small selected group of people. I wish to exposed and share these “niches” to empower the average people through knowledge sharing. There is a lot of hidden pro & cons on certain investment instruments that non-finance related industry people might not know off. (I am from an engineering background myself) . Hence the name of my blog, KnowThyMoney. Know = Knowledge is Power , Thy = Empower yourself through knowledge, Money = Earning more moolah to achieve financial freedom :P
Hence, I always encourage readers to comment on my blog to spur more discussions. Not really sure how to spur this , as I noticed that in general Malaysian readers are only interested to comment on stock pick related posts. (Whether it is a good time to buy stock xyz or not, what is the target price, etc)
Although my blog has Google ads, I don’t make much from it unlike some Malaysian bloggers. I consider it as pocket money if I earn any.
15. What is the biggest achievement your blog so far ?
When I started blogging around 2006, I never expected that I have so much stuff & ideas to blog about on personal finance. (Somehow, I managed to reach around 580 posts as of today.)  
16. Tell us one URL other than your own that your readers should read about ?
http://whereiszemoola.blogspot.com/à Sometimes, I really wonder where he finds the time to do some much research and follow-ups to expose the shenanigans in the stock market. I am curious on his background.
17. How many more years do you think your blog will exist for and how do you plan to finance your blog forever if planned to at all ?
I planned to continue as long as I can. Maybe the number of posts will reduced in the future if I no longer have much time to do so.
18. The world is big, many people have different point of views and emotions. If you met someone who called you geek, liar, cheaters because you yourself didn't do what you preach, how would you handle them ?
I just shrug them off. In this world, there are always people that try to find fault with you regardless of circumstances. So why bother to care their negative opinions.
19. What do you think about these interview questions and how this interview session can be improved ?
I think it is good enough for a starter.
Share:

Interview request

Hi,

My name is Michael Tsen. I am a fanatic on personal finance topics. I have been learning and reading personal finance stories since young. In recent years I feel very excited that quite a handful of Personal Finance blog writers are promoting rather interesting and unique point of view that I feel more people should know about. So I thought of an idea to interview the person behind the site. As I like your site a lot, I hope you are kind enough to accept my request to conduct an interview with you.

The interview questions will be slightly uncommon than those 'hello how are you' type of questions. At some instance, some questions may make some people feel uneasy but all questions are strictly professional to bring out the objective - ' to know the person behind the blog '. No personal identification will be sourced other than the blog URL we are interviewing you about. You may choose to 'skip' any question that you do not want to answer and your decision to skip will not be made known.

We will share the joint ownership of this interview script so both parties can publish the content in our respective venues. If you do accept this invitation, please let us know WHEN to send you the list of questionnaires ( 20 questions, free form writing ). We also track the time of the scripts to come back to us as to simulate the actual interview session although it usually take days or weeks.

Thanks and look forward to your favor reply,

Regards,
Michael Tsen
MalPF.com
Share:

Interview : Alan Tan


Tell us a bit about your childhood and how it affects your today's practice on personal finance ?
I would say the my personal finance practice is mostly influence by after reading these 2 book i,e  Rich Dad Poor Dad  by Robert Kiyosaki and Sharon Lechter and Millionaires are from a different Planet by Azizi Ali. It’s a must read book for those who want to take control of their financial life. Ever since, I continue my education via attend investment seminars
Answer this question without checking or asking for references : If you can remember, what is your Zodiac and Astrology signs ?
Pisces & Ox
What are the things you like to do during your free time, ie. your hobbies ? And what do you most dislike about ?
Reading & hiking
What is your favorite colors and numbers ? Any most dislikes ?
I don’t any much preference on this
What is your favorite food ? What do you hate most ?
I do love Spicy foods 
If you can meet a person dead or alive, who would that be ? What would you ask him ?
Abraham Lincoln. What’s your secret of not giving up and to be a great person?

What is the best and worst feeling you have ever had ?
Best feeling-Seeing my CPA Book at MPH Book stores and library. All these while I’ve been buying so many books until have a mini library at home, now others can read and learn what I shared. 
What is the last thing you do before go to sleep ?
Nothing in specify
What is the first thing you do when you wake up ?
Drink a glass of Apple cider juice

If you were to build a personal finance portfolio for a young man who has similar life path as yours, what will it be ?
First invest in yourself by reading books, attending seminar & networking. Seek out for a mentor or role model. Ask help if need to. Always remember that what works for others may not suit you. Even there’s a saying “One man's meat is another man's poison.”. Therefore  you must be able to adapt it in order to apply what you have learned. 
You met someone in a social party, describe what you do in 2 to 3 sentences.
I’m Helping business to close more deals
If you are not doing what you are doing now, what would you be doing ?
Working for others
How much time do you spend on your personal finance blog ?
Average 6 hours a week
What is the main objective of your blog, is it initially profit oriented and who are your targeted blog readers ?
I like to learn about Investing, Making money and personal finance. In another words it’s my passion as well. Every time when I visit a book stores, the first section to be visited is on Finance/Investment. 
The main objective of my blog is to share about what I have learned, share and educate other about importance of personal finance. All this thing is sadly not taught at school even it’s very important in life.
My targeted blog readers are those who share similar interest like me and who is new in personal finance
What is the biggest achievement your blog so far ?
I’m the first Malaysian best selling author that wrote a Wordpress blogging book that teaches people how to blog and make money online in Malaysia. This book expected to hit the bookstores early 2012 . 
Instead of just making friends on Facebook or watching videos on YouTube, wouldn't it be better to spend that time generating online income for yourself, your love ones and your family?
Tell us one URL other than your own that your readers should read about ?
http://kclau.com/ It has a lot of useful information about  personal finance and investment. It also has an interest guest post
How many more years do you think your blog will exist for and how do you plan to finance your blog forever if planned to at all ?
As long as my passion don’t die off. 
Even I don’t have to update my blog so often, it still get constant SEO traffic(from search engine esp Google) daily. Average about 1,000 unique blog visitors daily
The world is big, many people have different point of views and emotions. If you met someone who called you geek, liar, cheaters because you yourself didn't do what you preach, how would you handle them ? 
We can’t control what other want to say. I don’t think can do much. 
What do you think about these interview questions and how this interview session can be improved ? 
fine
Would you be interested to meet other finance bloggers in person ? 
yes
If yes
Do you smoke ? - no
Do you drink liquor socially ? -yes
Are you a coffee lover ? - no
Where do you stay and work ? ( Country, State, Region etc.)- Kuala Lumpur

Share:

Interview : Gabe maysfinancial.com


  1. Tell us a bit about your childhood and how it affects your today's practice on personal finance?
My family wasn’t quite poor, but money was tight growing up.  Through those struggles I’ve learned to save and manage money well.  I’ve learned that while money may not necessarily bring happiness, it is important to be able to afford the basics and opportunities for children to help enrich their lives.
  1. Answer this question without checking or asking for references : If you can remember, what is your Zodiac and Astrology signs ?
I’m not really into that stuff, but I think I’m a Libra.
  1. What are the things you like to do during your free time, ie. your hobbies ? And what do you most dislike about?
I enjoy programming, writing, weight lifting, running and hanging out with my wife.
  1. What is your favorite food ? What do you hate most ?
My favorite food is pizza…definitely pizza.
  1. What is the last thing you do before go to sleep ?
Kiss my wife.
  1. What is the first thing you do when you wake up ?
Brush my teeth.
  1. If you were to build a personal finance portfolio for a young man who has similar life path as yours, what will it be ?
For a young guy I’d recommend index funds in a Roth IRA.  Easy to manage, but still has control over fund choice and allocation.
  1. You met someone in a social party, describe what you do in 2 to 3 sentences.
I’d talk to them, ask them what they do, tell a few jokes…the usual.
  1. If you are not doing what you are doing now, what would you be doing ?
I’m doing exactly what I want to do, I love my career.
  1. How much time do you spend on your personal finance blog ?
It really depends, anywhere from 5-30hrs per week depending on my schedule and what I’m working on for the site.
  1. What is the main objective of your blog, is it initially profit oriented and who are your targeted blog readers ?
It is not profit oriented, I have no ads on the site and I do not sell anything.  The purpose is to provide useful, unbiased information to readers and help them improve their financial decision making.  Eventually I’d like to at least offset the operational costs of running the site, but I haven’t looked into it much yet and would not want to compromise the value the site provides to readers.
  1. What is the biggest achievement your blog so far ?
I think it’s well designed, intuitive and very easy to use.  Usability is huge.
  1. Tell us one URL other than your own that your readers should read about ?
Ted.com is a great site.  It’s not personal finance related, but it’s about people doing big things to make our world a better place.
  1. How many more years do you think your blog will exist for and how do you plan to finance your blog forever if planned to at all?
I plan on keeping the site going indefinitely.  I currently fund the site myself since I do not sell anything or have any ads up.  I assume I’d keep doing that, though I wouldn’t mind turning it into a career after I retire from my current line of work.
  1. The world is big, many people have different point of views and emotions. If you met someone who called you geek, liar, cheaters because you yourself didn't do what you preach, how would you handle them ?
Things like that don’t bother me much, I’d keep doing whatever I was doing.  You can never make everyone happy.
  1. Would you be interested to meet other finance bloggers in person ?
Possibly, it depends on my schedule, though I don’t consider my personal finance site much of a blog in the typical sense.
  • Do you smoke ? I don’t smoke.
  • Do you drink liquor socially ? I don’t drink alcohol..
  • Are you a coffee lover ? I don’t drink coffee.
  • Where do you stay and work ? ( Country, State, Region etc.) United States, California, San Diego
Share:

Interview : Chong - askchong.com


  1.  Tell us a bit about your childhood and how it affects your today's practice on personal finance ?
Nothing special and I don't remember most of my childhood time, like lost of memory.
  1. Answer this question without checking or asking for references : If you can remember, what is your Zodiac and Astrology signs ?
No need to check with anything or anyone. Born in year of Dragon and my star is Sagittarius.
  1. What are the things you like to do during your free time, ie. your hobbies ? And what do you most dislike about ?
Computer related, now extended to smart phones and iPad or surf the web for information regarding latest technology and investment in share.

I don't have anything specifically "dislike" but if any... would be "in a pub full of second hand smoke" and disturbing noise. I also don't like to waste money.
  1. What is your favorite colors and numbers ? Any most dislikes ?
 Blue. I have no favorite "Numbers"... Emm... dislike? No.
  1. What is your favorite food ? What do you hate most ?
Nothing in particular. I can eat bread from morning to night. Nothing specifically favorite but if I don't know what to eat in a restaurant, perhaps I will just order "Nasi Lemak" if they do serve. As income improve over last few years, the quality matters instead of what type of food.

I hate nothing but I will say North India food is considered an acquired-taste.
  1. If you can meet a person dead or alive, who would that be ? What would you ask him ?
Never come across my mind, yet.
  1. What is the best and worst feeling you have ever had ?
 Best feeling is not about spending money but watching it grows. Beside money, best feeling is watching my children grow, enjoy their laugh and naughtiness.

Worst feeling... ha ha... quarrel with wife. On monetary side, losing money on share investment.
  1. What is the last thing you do before go to sleep ?
Normally.... not watching movie, not music but work. I have few side income jobs so most of the time I will do my work. That is the good thing about freelance. I can work at home at the best time available for me, including before go to sleep.
  1. What is the first thing you do when you wake up ?
 Now, probably read email and some news, not local news but business news.
  1. If you were to build a personal finance portfolio for a young man who has similar life path as yours, what will it be ?
Building a portfolio means how to spend the money earned or acquired. First thing is to buy insurance and next is to invest and reinvest.

What to invest is entirely depends on the knowledge and risk appetite.
  1. You met someone in a social party, describe what you do in 2 to 3 sentences.
The problem I am facing now is the multi-hats I am wearing now. For certain people, I will say "Hi, my name is Chong Kong Hui, I am Chartered Accountant by profession now working in a listed company".

For my own career, "Hi, my name is Chong Kong Hui, I am Accoutant by profession and now providing financial service and solution for individual and SME"
  1. If you are not doing what you are doing now, what would you be doing ?
Wow, I just can't imagine that.
  1. How much time do you spend on your personal finance blog ?
Not much time. Probably few hours within a month only.
  1. What is the main objective of your blog, is it initially profit oriented and who are your targeted blog readers ?
Even I put in some advertisement but the initial purpose of this blog is to share the information and to support my own career in financial service as well as to improve my knowledge.

Nothing great about income from the blog and not worth to mention.

I don't have specific marketing or target group of readers but I believe anyone who have an interest in personal finance may "find" my blog from the search engine.
  1. What is the biggest achievement your blog so far ?
Huh hah... i do not regard having any sort of achievement so far but gladful the monthly hit stay above 1,000 for past few months.
  1. Tell us one URL other than your own that your readers should read about ?
There are more than one I would recommend but it depends on the reader's specific interest at that time of reading. The few I like already linked within my blog.
  1. How many more years do you think your blog will exist for and how do you plan to finance your blog forever if planned to at all ?
I noticed some blog almost ceased to be active after a while..... as my blog is intertwine with my career and my personal interest.... i believe it will exist for a long time and the best thing for me is if anyone would like to be the co-author or to do some guest-post.

My blog cost me almost nothing beside the USD10 for the domain name and my free time. Therefore, I do not foresee any requirement to get paid for dong it. Advertisement revenue, if anything better than RM10 a month will be a BIG BIG bonus.
  1. The world is big, many people have different point of views and emotions. If you met someone who called you geek, liar, cheaters because you yourself didn't do what you preach, how would you handle them ?
If it ever happens... things get changed along the time. I do believe it last year doesn't mean I will continue to believe it now. Life goes on....
  1. What do you think about these interview questions and how this interview session can be improved ?
I am not an expert in designing questions other than those lead to a close (closing sale). Question is, what is your objective or data to be collected? May be the book "the Millionaire next door"  can give you hints.
  1. Would you be interested to meet other finance bloggers in person ? If yes
  • Do you smoke ? NO
  • Do you drink liquor socially ? NO, beer is ok.
  • Are you a coffee lover ? YES
  • Where do you stay and work ? ( Country, State, Region etc.) Sg Buloh... I am ok with KL/PJ 
Share:

Interview : KC Lau


  1.  Tell us a bit about your childhood and how it affects your today's practice on personal finance ?
My parents are frugal. So I think I learnt a lot about saving money from them. Since money is scarce during that time, I learn to make money since primary school.
The first time I made money is through selling rubber tree seed to some seniors. That time, I was only standard 3 and some standard 4-5 seniors bought some special rubber tree seed that I found near my place.
The seed has really hard and solid shell which is advantageous at some games we used to play. The seeds cost them RM0.20 a piece. The smaller ones cost even more.
I also start teaching piano at the age of 16 and this part time job pays through my exam fees and also university degree program.   
 
  1. Answer this question without checking or asking for references : If you can remember, what is your Zodiac and Astrology signs ?
Don't know 
  1. What are the things you like to do during your free time, ie. your hobbies ? And what do you most dislike about ?
watching movie, making music, traveling and playing basketball and volleyball 
  1. What is your favorite colors and numbers ? Any most dislikes ?
green and 9. Nothing to be hated. 
  1. What is your favorite food ? What do you hate most ?
Laksa. Hate nothing though. Insect maybe.
  1. What is the last thing you do before go to sleep ?
Read 
  1. What is the first thing you do when you wake up ?
Toilet.
  1. If you were to build a personal finance portfolio for a young man who has similar life path as yours, what will it be ?
I would say to spend the money on getting education that will let him make money on his passion. 
  1. You met someone in a social party, describe what you do in 2 to 3 sentences.
Smile. Introduce myself and ask what the person does. 
  1. How much time do you spend on your personal finance blog ?
One hour a week, maybe less. I used to work on it everyday. 
  1. What is the main objective of your blog, is it initially profit oriented and who are your targeted blog readers ?
It is for educational purpose at the beginning. But now it has become profitable that I have to strike a balance between the "gives" and "takes".  
  1. What is the biggest achievement your blog so far ?
> 10,000 subsribers 
  1. Tell us one URL other than your own that your readers should read about ?
  1. How many more years do you think your blog will exist for and how do you plan to finance your blog forever if planned to at all ?
My blog will exist as long as I live because it is my name on it. I may draw up a plan for the continuation since you asked. You trigger my mind to think about this matter.
I need to set up a trust that is funded to pay the maintenance fee to keep the website online when I pass on in the future. That is not hard actually.  
  1. The world is big, many people have different point of views and emotions. If you met someone who called you geek, liar, cheaters because you yourself didn't do what you preach, how would you handle them ?
I just ignore them. I used to react but now I become smarter. Those people just doesn't worth a single minute to even bother about them. I realize that I can't please everybody. Those paying customers deserve more of my time. 
  1. What do you think about these interview questions and how this interview session can be improved ?
You always do the unexpected things, which is kind of fun to be a part of. 
  1. Would you be interested to meet other finance bloggers in person ? If yes
  • Do you smoke ? No
  • Do you drink liquor socially ? Social drinker
  • Are you a coffee lover ? Love coffee in the morning
  • Where do you stay and work ? ( Country, State, Region etc.) Penang and now in the USA.

Share:

Interview : CP Teh - cpteh.blogspot.com


Tell us a bit about your childhood and how it affects your today's practice on personal finance ?

CP : Will write this in length in my blog next weekend and copy that to send it to you.

Answer this question without checking or asking for references: If you can remember, what is your Zodiac and Astrology signs ?

CP : Gemini. Goat.

What are the things you like to do during your free time, ie. your hobbies ? And what do you most dislike about ?

CP : Like : Listening to songs/music. Playing with my kids(I have 2). Dislike : Gossiping? Day-dreaming? Haha

What is your favorite colors and numbers ? Any most dislikes ?

CP : Like : Yellow and light blue. Dislike : None

What is your favorite food ? What do you hate most ?

CP : Carrot cake(Chinese) Dislike : Anything related to vege.

If you can meet a person dead or alive, who would that be ? What would you ask him ?

CP : Gandhi. How confident he was using non-violence ways against oppression?

What is the best and worst feeling you have ever had ?

CP : Best feeling … hmm … seeing my kids coming out in hospital(birth). Worst feeling … my dad passed away this year. Anything relating to death such as 9-11 and such. I simply feel sad for those who will miss their loved ones.

What is the last thing you do before go to sleep ?

CP : Silent prayers.

What is the first thing you do when you wake up ?

CP : Checking on market-news. Haha


If you were to build a personal finance portfolio for a young man who has similar life path as yours, what will it be ?

CP : To enlighten him about what it takes to be successful financially by actively motivate his financial-aspect of his brain. No one gave me the guidance when I was young or till 30+, so to make a person REALISE the importance of ‘personal financial control’ is very important.

You met someone in a social party, describe what you do in 2 to 3 sentences.

CP : I seldom to go to party in my whole life(I dislike crowds and many hypocrites there!!). I don’t attend wedding dinners and such except for my siblings. I think if I REALLY attend a party(birthday, house-warming …), I might introduce myself and strike a conversation about stock-market!! Haha

If you are not doing what you are doing now, what would you be doing ?

CP : Well, many of things I do plan … I planned to teach Math in colleges since I was form 4. I planned to teach trading(just started!!) way before I even know anything about trading. But, if I m not doing what I am doing now, I might go to AUZ to study marine-biology for interests!!

How much time do you spend on your personal finance blog ?

CP : Averagely 1 to 2 hours per day. At times, more when I want to share something interesting I just read, for example : Is TA rubbish which I just read from your blog!!

What is the main objective of your blog, is it initially profit oriented and who are your targeted blog readers ?

CP : To record my trades, initially. To get some readers with knowledge and kind enough to share a pointer or two so that I could learn from them. So, initially, the blog is my personal diary(as I was a blogger since 10 years ago, relating to my thoughts and personal opinions – I m only writing about stocks in DEC 2007) regarding my LEARNING progress. It still is. The initial target readers are only those few who want to help me. I could not help others back then. It was 2008-2009 and it was bearish!
Nope, my blog NEVER meant to be profit oriented. In fact, only recently … 2 months ago, I placed the advertisements(google, nuffnang) with a help of a blogger friend! Currently, my blog is more of leaning-teaching platform of trading ideas.

What is the biggest achievement your blog so far ?

CP : Huh? I m not sure if it is considered as achievement … but the satisfaction derived from teaching is great. I am in education line for 20+ years. Perhaps this interview is seen as a recognition of ME as a financial-klse-blogger. That could be an achievement for me after 3 years of consistent blogging? Hmm ..

Tell us one URL other than your own that your readers should read about ?

CP : A blog or a site? If it is a blog, then I have recommended a FEW … Dali’s, Alex Lu’s, Alpha Chart’s, CWYeoh’s, TGLee’s. These are much better than my blog. In fact, I have recommended 10 blogs ANYONE should read FIRST … and if they really have nothing to do, they can read my blah-blah stories for pleasure past time purposes!! Haha.

How many more years do you think your blog will exist for and how do you plan to finance your blog forever if planned to at all ?

CP : As long as I still have the desire to share my opinions and learning-teaching, my blog should be there and it should be free. It is sharing of opinions only, anyway. Why should we be financing our blog? Unless blogspot starting to charge me, then I will take my blog private.

The world is big, many people have different point of views and emotions. If you met someone who called you geek, liar, cheaters because you yourself didn't do what you preach, how would you handle them ?

CP : Yes, I do have such readers … I might get upset initially, but I will choose to ignore. Unless the statements used against me have some educational pointers to share with others, it is viewed as distractions and negative noises. Ignore.

What do you think about these interview questions and how this interview session can be improved ?

CP : Hmm … could nt think of any suggestions to improve now. It is also depending on your motives and such.

Would you be interested to meet other finance bloggers in person ?

CP : Yes … Dali, Alex, Remnant, CWYeoh, TGLee, Alpha, Stocktube ... Micheal Tsen? Haha

If yes
Do you smoke ? NO
Do you drink liquor socially ? NO, not even beer. No to alcohol OH.
Are you a coffee lover ? Yes.
Where do you stay and work ? ( Country, State, Region etc.)
I am staying in USJ and working in Subang Jaya. Selangor.

Share:

Interview : Champdog - financialindependent.blogspot.com


  1. Tell us a bit about your childhood and how it affects your today's practice on personal finance ?
[ChampDog]: I learned 2 things about money from my parents. The first is my dad rewarded me with RM2 every time I helped him to wash his car where else my mum didn’t give me a single cent when I helped her to wash plates. Thus, I was very motivated to help my dad instead of my mum. From there, I learned that money can motivate people.
Second thing is my mum created a log book for me and force me to track every single of my expenses. Unfortunately, I failed to track that that after 3 months. From there, I know micro-manage my expenses just doesn’t work for me.
  1. Answer this question without checking or asking for references : If you can remember, what is your Zodiac and Astrology signs ?
[ChampDog]: Snake and Libra.
  1. What are the things you like to do during your free time, ie. your hobbies ? And what do you most dislike about ?
[ChampDog]: Blogging and Travelling. I most dislike about is when I get sick.
  1. What is your favorite colors and numbers ? Any most dislikes ?
[ChampDog]: Purple and 7. None, I like all numbers.
  1. What is your favorite food ? What do you hate most ?
[ChampDog] Seafood. I hate most is seafood too because it gives me a lot of bad cholesterols.
  1. If you can meet a person dead or alive, who would that be ? What would you ask him ?
[ChampDog] My past life of me if that exists. I will ask him, do you have anything to ask me?
  1. What is the best and worst feeling you have ever had ?
[ChampDog] Best is when you’re having fun with your love one. Worst is when you’re not having fun with your love one.
  1. What is the last thing you do before go to sleep ?
[ChampDog] I try to empty my mind and do not thing anything else.
  1. What is the first thing you do when you wake up ?
[ChampDog] I turn off my clock alarm.
  1. If you were to build a personal finance portfolio for a young man who has similar life path as yours, what will it be ?
[ChampDog] I will tell him to define his own personal finance portfolio and don’t just blindly follow what other people says including my words.
  1. You met someone in a social party, describe what you do in 2 to 3 sentences.
[ChampDog] I will just say hi and smile to her/him. If the person is attractive I will try to find a common topic to chat on.
  1. If you are not doing what you are doing now, what would you be doing ?
[ChampDog] I will be doing what I”m not doing now.
  1. How much time do you spend on your personal finance blog ?
[ChampDog] 2 out of 7 days in a week.
  1. What is the main objective of your blog, is it initially profit oriented and who are your targeted blog readers ?
[ChampDog] There are few objectives but the main objective is to learn personal finance by myself and share it to others. Making profit out of my blog is the second priority. Targeted blog readers could be anyone.
  1. What is the biggest achievement your blog so far ?
[ChampDog]: Get an interview from you. :)
  1. Tell us one URL other than your own that your readers should read about ?
[ChampDog]: http://malaysiapersonalfinance.blogspot.com/
  1. How many more years do you think your blog will exist for and how do you plan to finance your blog forever if planned to at all ?
[ChampDog] Forever. I do not need to finance my blog because it is free hosting unless Google dies off one day or Google starts charging me.
  1. The world is big, many people have different point of views and emotions. If you met someone who called you geek, liar, cheaters because you yourself didn't do what you preach, how would you handle them ?
[ChampDog]: I will say, "I”m sorry and you have a point too".
  1. What do you think about these interview questions and how this interview session can be improved ?
[ChampDog]: That is pretty awesome. I can’t think of anything can be improved at this point.
  1. Would you be interested to meet other finance bloggers in person ? If yes
[ChampDog]: Yes when I feel comfortable. :)
  • Do you smoke ? [ChampDog] No.
  • Do you drink liquor socially ? [ChampDog] Yes.
  • Are you a coffee lover ? [ChampDog] Not really.
  • Where do you stay and work ? ( Country, State, Region etc.) [ChampDog]: Penang, Malaysia.
Share:

Labels

Blog Archive

Recent Posts

Unordered List

Theme Support