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Strategy And Investment

Robert Elstone, 18th February 2011 - 19:31

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Robert Elstone

Robert Elstone

Posts: 39

Robert is Everton's Chief Executive.

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Feedback from last week’s blog has generated two main follow-up questions; firstly, one that relates to an over-used business-speak word ‘strategy’ – specifically, do we have one? And secondly, where is Everton’s billionaire?


At the risk of getting defensive, it seems according to some, Everton is a Club ‘bumbling along’ going nowhere. Unsurprisingly, we have a different view. Everton has a very clear three-tiered strategy designed to support its objective of regular European football:

1. Firstly, to prosper in this League, as I said around ‘Kirkby time’, you need either a big, modern stadium that you fill every week or a billionaire who can make up that revenue gap (or maybe both). On the former, as we all know, for the first time arguably since 1892, we had a stadium solution we could fund at Kirkby, but on the decision of a Government minister, we were denied. Within a matter of weeks, we were back up and running, talking to a much more positive City Council, to land owners, developers and potential partners. And we’ve not stopped talking since. We’re talking positively about a handful of good, potential sites but in this day and age, it’s not easy. All prospective partners are facing challenging times. Within a year of the Kirkby rejection, we’d developed a scheme to improve Goodison – a self-funding, cash generating project with a new shop, hospitality, office and museum. We expect to start work soon as we wade through some complex legal matters.

As for the search for a new investor, there has been a stream of potential investors, or rather in truth, intermediaries and agents inquiring about the Club
– all too often, agents who know a man, who know a man, who brings his plan and who’s ready to buy Everton. I’ve held meetings. The Chairman’s held
many meetings. We’ve had meetings together. And, whilst quite clearly, they haven’t delivered what we’re looking for, it’s not because we’ve been imposing
unreasonable conditions, no one has come up with any money. The Club is for sale and that sale does not depend on the Chairman remaining in charge.

2. Secondly, we have to out-perform our rivals, developing, buying and selling players. Our track record is good; a Chairman who realised a fantastic sum on Joleon Lescott, and others, a Manager who signed Tim Cahill and Mikel Arteta, and others and an Academy that developed Jack Rodwell with more to come. Whilst to date we haven’t succeeded on our first objective, we have done better than most on this one.

3. Thirdly, we have to grow our fanbase and build loyalty. Quite simply, we strive to find more Evertonians, loyal Evertonians who will fill Goodison Park on a regular basis. To do this, we’re improving our data and knowledge of our fans; we’re developing initiatives to provide a real sense of ownership to our fans; we’re looking at making matchdays as exciting as they can be; and, we are making sure we’re easy to buy from and deal with – becoming every bit as good as any modern, consumer business. All of these areas are being worked on, developed and improved. In a nutshell, the above represents our three-line strategy, a plan of attack which has worked, is working and will continue to see us competing for European qualification places.

The Six Million Dollar Question?

The question everyone wants the answer to, including the Board, is why hasn’t Everton found a new investor? And that’s a tough one to answer. I do know when I look at the values on other clubs that it isn’t Everton shareholders asking for too much money. Football club valuations are imprecise and often subjective but investors are not rejecting Everton because it’s too pricey. As I said earlier, I do know also it’s not the notion that our Chairman wants to stay in charge. Likewise, I also know it’s not because potential investors don’t know that Everton is for sale. The Club has met, and meets, and has appointed proven advisors who work on our behalf across a wide-ranging, worldwide network of contacts.

I also know that anyone buying any football club needs to accept that a big part of the return will be the profile and excitement of owning a football club. And the investment required, which only really starts on day one, is certainly not small-change. If the new owner is after a sensible, rational, cast-iron business investment then football probably won’t fit the bill. If he wants guaranteed dividends, then he’s also in the wrong place. As I’ve said before, the current Board hasn’t taken a solitary penny and certainly, their original investment wasn’t particularly ‘rational’ nor motivated by future financial gain.

If however, on a more positive note, the investor wants to buy something uniquely exciting and secure a place at the best sporting table in the world then he might be in. In our case, if he wants to be in at a Club with unique history, with a large and loyal fanbase, with real spirit and passion then he should come here. More than a century ago, a handful of great clubs were formed and Everton was one of them. It is this heritage that will provide the bedrock of any investment.

Why hasn’t it happened here when it’s happened elsewhere? As I’ve said, I’m not sure but perhaps two points to consider and a word of caution. Firstly, some recent sales have been ‘forced’ with much less certainty that the sale results in the club moving into the right hands. Whilst it’s clearly important that any investor coming into the game needs deep pockets and their eyes wide open, it’s also the case that a seller with an interest in the long-term future of their club will want to be equally challenging of the next custodians. Secondly, we can debate where has new ownership really catapulted a club forward?

Indisputably, at Chelsea and Manchester City, but the impact of new owners is mixed to say the least.

Of course, what we all want is someone to buy the Club a Premiership winning squad and build us a new stadium. And whilst not one new investor in the Premier League has done both, it is not stopping us looking.

Latest Blogs by Robert Elstone

Charles Bromheadwhy do people seem so blase about letting any tom, dick or harry buy everton. The quote 'WE ARE EVERTON' keeps getting used.. Exactly..We are. So lets not turn into man city were we keep buying 25 million pound strikers until we stumble across one who is actually any good. That isn't everton so people should shut up about sheikhs and russians and remember why we fell in love with everton in the first place. because we do things right. we gain sucess through toil and hard work not reckless spending and beating teams because you have bought 11 good individuals despite having no team ethic or camraderie. I would rather watch everton in the 4th div than see us like man city because at least i'd be watching everton and not a team playing in blue called the same name. the soul of this club is what seperates us from the rest. lets not sell it.

Friday 6th May 10:34 Report Comment

brennan finneganWell said Martin Stewart and Rex. Wer always referred to as negative when posting on the need for investment. We all know the problems a few clubs have had, but we also know most clubs have successful investment, so why hasnt the 4th highest achievers in football history not attracted an investor?

Wednesday 23rd February 15:32 Report Comment

Rex H LawrenceFair point Aaron except that I would have thought the right investment would have been secured by now.After all it has been clearly needed for the last 5 years .and we are EVERTON.I simply cannot accept that with all their major global contacts the club has been unable to find theRIGHT investment over such a long timeframe.If this is viewed as being negative so be it but in the absence of convincing information from the club things do not add up for this devoted Evertonian.

Wednesday 23rd February 12:23 Report Comment

Owen KendrickIf you build it, they will come...

Wednesday 23rd February 00:40 Report Comment

Aaron MythenNo one is saying we cant see the alarming big picture or that investment is not the only way!! Of course we need investment but the right kind....I am just tired of all the negativity every time thinks don't go right for us... the kind of investment we need to really make a difference is not as easy to find as some of you would like to make out!!!!

Tuesday 22nd February 00:02 Report Comment

brennan finneganSteven you say we have what we need in our youth system to achieve success. Do you mean winning the championship? When all around us are bringing in new blood and we are not, this is a serious situation. Youth, yes for the future but NOW we need experienced players COMING IN.

Monday 21st February 19:37 Report Comment

Stewart LoweI read every word of your statement and it does give people a better understanding of what goes on behind the scenes to make those things happen and i think its as a result of not keeping the fans informed on a more regular basis. What if there was a statement monthly to keep both fans and board linked. The big question for me is: Since David Moyes took charge in 2002 and after calculating all incomings and outgoings of players to date, why do we have an average outlay on players of just £2.3m per season? During this period,the board has never invested money into the playing squad. It has had to come in the form of re-investing money received from the sales of Rooney, Lescott, Gravesen etc

Monday 21st February 18:54 Report Comment

brennan finneganThanks Rex We need more on here like yourself, who can see where we should and could be and need to know why the Stokes, Villas and likewise, who are nowhere near our stature in football history are quoted in the recent transfer headline 'Stoke, Villa and cash strapped Everton' As Martin points oout investment is the key to success.

Monday 21st February 17:27 Report Comment

Martin MossInvestment is the key to success. We can no longer rely just on the skill of DM. I believe there are investors out there but despite these words the board and BK have not done enough to secure investment. Being in love with the club will not see us move forward and i believe the time has come to take a little risk with a future investor. I believe we are sunk without one. There has got to be an investor somewhere in the world for such a great club. Promotion of our club worldwide in the forsale section is what we need.

Monday 21st February 15:40 Report Comment

Rex H LawrenceGreat post Brennan, it's a tragedy that some fans cannot see the alarming big picture and by not doing so give the Board liscence for their inactivity on the investment front.Despite our brave boys great win at Chelsea they and we need the support of the investment NOW urgently needed.This is not a moan, it is a heartfelt plea to the Board to allow inward investment in before it is too late.I have been in love with the Blues for 63 years and believe I have earned the right to question the current strategy.

Monday 21st February 15:17 Report Comment

Steven AndersSimples!!! 80mill to buy, 45 mill on debts, 400 mill on a stadium, either redevelopment or new, 75mill squad. £600 million for a club that last won a trophy since 1995, for any return on that initial 600 million we would need instant success which isnt likely. We have what we need an excellent youth system, which will bring through excellent talent, nurture the talent and we will acheive success not to mention this countries national team will dramatically improve. Look at teams in Italy and Germany, they invest in youth, Brazil and Spain. All youth set ups make their leagues great where money has made ours easy on the eye, but certainly not great and not a good strategy. Our league is all about pace and power not class and skill not to mention the majority of the players are not english!!!!!

Monday 21st February 12:57 Report Comment

ROBERT DONOGHUEI think the negativity at the moment is just down to our league position, because were down there at the moment everything seems to be going wrong and we start to question everything, the reality is that if we had cut out the silly defensive mistakes, we could have turned 5 of the draws into wins and be 10 points better off, then everyone would be postitive, DM got it bang on, the team have the power to change the supporters perception of the club

Monday 21st February 09:09 Report Comment

brennan finneganWhen investment debate is raised and true fans express their wish for financial input the BK fanbase point out one or two clubs who have suffered by poor investors and disregard the many others who have benefitted. These so call fans are thankfully in the minority or wel never get investment. If these socalled fans get their way we could end up in the championship. Investment is needed. Maybe these so called fans could anwser the question we all want anwsered Why are Everton with the 4th best historical trophy record not attracting investors?

Monday 21st February 02:59 Report Comment

carl jonesAlaxanda Jovanavic we been looking for investment for 12 years so I would'nt hold my breath if I were you

Sunday 20th February 23:43 Report Comment

Aaron MythenLot of moaning and negativity on here as usual but I am starting to believe that some so called fans just enjoy it! Any time something goes badly at the club certain names are on here leaving comments then when we have a good result or things are going well those names are missing i.e no msgs of congrats they only comment when they are moaning about things!! I am distraught at the way things have gone this season and the lack of investment but would prefer BK to some foreign investor who does not really love this great club just look what happened to Portsmouth for example....

Sunday 20th February 22:29 Report Comment

JOHN ROBERTSWould like to ask Mr Elstone/ board why we let 4 forwards all be it 2 1st team players (yak/vaughan / agard/ silva ) go out on loan! when we are struggling to score goals!!?? then lose pienaar 3mill and STILL NOT BRING IN ANY LOAN PLAYERS!!!??? NO quality was out there we were told!! 1.BENTLEY 2. MARTINS 3.O HARA 4.KEANE 5.STURRIDGE 6.IRELAND 7.SANTA CRUZ that just a few who would/could improve our team!

Sunday 20th February 20:44 Report Comment

brennan finneganGolden Vision agree 100% with your post. Can you make a suitable name for the play. Mr Elstone points out we need a new stadium and a Prem winning squad and no investor has done both in the Prem. I would ask the board to conscentrate on just getting some money in for new players to get us into Europe. I would be more than happy to sit in my beloved Goddison and enjoy European footy. Please dont make the excuse of wanting an investor who will buy both a new stadium and new players. INVESTMENT IN PLAYERS IS A PRIORITY NOW.

Sunday 20th February 19:59 Report Comment

Rex H LawrenceI had a post rejected because it contained more than 200 words.Iam now unable to do it full justice.In short my comments were in support of Leslie Olson's post,I,fully endorse every point he makes.

Sunday 20th February 17:54 Report Comment

carl joneswe won hooray

Sunday 20th February 00:03 Report Comment

Aleksandar JovanovicI believe that with raising popularity of football and unbelievable strength of the Premier League we just need to keep up in the upper table and eventually someone has to buy us...I mean, it's against any logic that no one does. Question is only how long until that happens and can we keep up until then?

Saturday 19th February 16:57 Report Comment

Wai Kin Lowwe beat chelsea!!!!!

Saturday 19th February 15:31 Report Comment

Paul Ellamecho most of the points on here, particularly the need for more and improved communication from the club to the fans and the need for positivity. yes we are only 3 points (goal diff makes it 4 really) above bottom three but we are also only 7 points (and a game in hand) behind a european place. im not happy where we are as im sure none of us are but its possible it could all be much brighter in a few games time. keep the faith!!!

Saturday 19th February 14:49 Report Comment

Mark LynchSpot on Paul Howells, self funding cash generating means just that.... Nice to see some positive comments oh and its also nice to see that we are allowed our voices back on this website ;^)

Saturday 19th February 12:28 Report Comment

Jon SummerWell said Mark Lynch, a bit of sense at last on here, instead of knee jerkers shouting for BK's head on a plate and the board to quit!, where would that leave us??? Patience, support and LOYALTY COYB

Saturday 19th February 11:24 Report Comment

stephen greenGood point Mark. We had been expecting so much this season and it's been disappointing to say the least! Moyes has performed miricles 80% of the seasons he has been in charge, this is not one of them. I believe the club do invest when we sell a player, it is done though with wages in mind. I agree with andrew around wages and think we need to cap them if we cannot generate more revenue to aviod debt increasing. Players should be sold and new ones bought in the summer to create a buzz for the players, fan and moyes. He has worked with the same players season after season! Lets be positive and brave!

Saturday 19th February 11:17 Report Comment

Craig MillsI don't know where the money goes, we have a small squad and have never paid players the crazy money that other teams have. We have 35000 regular fans for home games yet we slip further into debt?? Is a new stadium the answer?, well i guess it is if you can fill it every week but is our attendence suddenly going to increase by 10-15000 because we are at a differant ground - i dont think so. Maybe the owners and shareholders need to dig deep to help the club, if we are challanging at the top end surly the value of the club goes up and everyone wins if we find new owners.

Saturday 19th February 10:53 Report Comment

nick daviswell said mark lynch. there is way too much negativity flying around at the moment and its spreading on to the pitch. you have to take the rough with the smooth. whats great about about this club is everyone giving 100%, unfortunately some supporters arent. back your team and all of those moaning....jog on.

Saturday 19th February 10:52 Report Comment

Mark LynchAgree with you Paul Hankinson, we all want a rich investor so we can do a chelsea and city, but the reality is that most clubs that have been taken over, have failed big time. patience and support is what we need now NOT NEGATIVITY!!!!

Saturday 19th February 10:04 Report Comment

Andrew Greenhowi totally agree with allan hill. This season was supposed to be the ONE where we saw the FULL potential of our 'GREAT' squad. However, Arteta has been awful-not worth 35k p/w never mind 70k. That said, he is a wide player playing in the middle (i dont get it). I don't really blame the board 100% for the mess we are in. It was not their fault the government turned down the stadium plan. It is not their fault that this squad is under-performing (the under-performance cost us pienaar, who would have signed a new deal had we been challenging the top 4). We have been relatively happy when moyes has got the best out of the players, but the players are totally to blame for the rubbish displays and lack of matter how many players come on here stating their desire to win and 'we should have been better'

Saturday 19th February 09:59 Report Comment

alan kaneagree with allan hill 100% enough said!!!!!!!!!!!

Saturday 19th February 09:50 Report Comment

Ajamu MutumwaFirst thank you for the opportunity to post back our positive & probably mostly negative views. My few points are (a) you really need to do this blog more often and not as a reaction to some external issue (b) part of building that wider family is working with supporters who themselves don't draw any finances from the club, I'm thinking of fans forums (c) There was a promised report independant report into the stadia. Not seen it yet. Please publish it and soon. Finally, keep the dialogue open, you do have many friends amongst the supporters, even if at times it doesn't feel like it.

Saturday 19th February 08:34 Report Comment

Golden visionI honestly dont know if the board of directors read the comments or if they do they actually care. I Have paid for 4 season tickets for my family for over ten years and I will not be doing it again this year. It kills me to do it but times are hard and the investment we are putting in is not going were I beleive it should be. I know others who think the same way and that concerns me that the club are going to get a major shock in the coming weeks when season tickets are not taken up because people have lost total faith in the people who run our beloved club. If BK does take time away from writing his new play and decide to speak to the fans and explain the situation and what is going on it would be appreciated. COYB INWT

Saturday 19th February 07:22 Report Comment

alexis leungFurther to Craig Shelley's rightful concern, we'll lose TV money going down the league table. If the season ends last week, we lose many million pounds losing to Bolton. And, what we are losing if we don't go to the 5th round of FA Cup? I think the most important thing is still to get the players play to win. What is the point having a 60,000 seat stadium if we playin Championship?

Saturday 19th February 04:48 Report Comment

Tim FentonThe real shame is that this is the most talented squad since the championship winning team of 86/87. Unfortunately both the players and manager seem to be suffering from a big loss of confidence in their own ability at present and whether this is partly due to the financial uncertainty, it is hard to say. One thing is for sure: a good run in the cup starting with a famous victory at Chelsea tomorrow, backed up by some wins in the league and there will be a lot less chat about potential investors etc. We have an excellent and highly paid team and it is time for them to show it on the pitch week in week out, no excuses!

Saturday 19th February 03:30 Report Comment

dharamvijay badhanSame old story over and over again! Why buy a Pl club when you have no money to invest into it? all these millionares sitting on the Everton board and neither invests a Penny in Efc.What happened to the 70 odd million that was supposedly "Ring Fenced" for the Kirby move?

Saturday 19th February 00:52 Report Comment

leslie olsonWords Mr Elstone, empty and meaningless words designed to try to satisfy the long suffering fans of our wonderful club.Time you and everyone else involved realised that words dont cut it any more, Everton fans (real ones) want actions, not words. WHY has our club dropped so far behind others in the last 2 years? WHY do we constantly release players and not replace them? What exactly are you going to say in a few months time if we are relegated because we didnt strengthen our already flimsy squad? Frankly I'm sick and tired of all the meaningless talk from the club, just as I'm sick and tired of the way we play our football. Fact is we're a second rate club going absolutely nowhere but down. Ive watched Everton for 50 years and its heartbreaking to see what is happening here. If other less fashionable clubs can buy players, why can't we? Let's have less of the ridiculous talk and more action. 3 months ago Liverpool were on the bones of their backsides and now look at them, they're laughing at us...AGAIN. Get it sorted for god's sake.

Saturday 19th February 00:19 Report Comment

Paul HowellsI think its great that the club at least give us some feedback like this, I doubt many other premier league clubs give their fans this kind of insight. Its just a shame a lot of people dont listen, a commenter below said that Elstone says nothing new here. Which is true, we have heard basically all of the above before, which means we've heard that Kenwright is not demanding to stay in charge or ovepricing the club. Yet people continue to slate him for doing both, I'd like to know how these people know so much about the conditions of sale of our club. Also, to the guy who said the new development with the shop, museum etc. is a waste of money we dont have did you actually read this blog? What part of 'self fundng, cash generating' dont you understand. Or in previous articles were we have all been informed it wont cost the club a penny? Kitbag and Sudhexo are funding all £9m of it.

Friday 18th February 23:47 Report Comment

arthur jonesWe've been listening to this in one form or other for 12 years ... Actions speak louder than words , all I can hear is the same old pre season ticket time soundbites and no action ... You'll have to do better than that

Friday 18th February 23:37 Report Comment

Jamie SheilsI think the whole point has been missed here. The Board of directors must surely drive the vision of the club?? The fact that they don't draw a salary is regularly waved in front of us when challenged but that is not enough! Each Board member should be able to bring their own area of expertise to drive the club is most regrettable that this is not the case at my beloved club and this is the root of the problem. I think back to the many problems LFC had prior to the first USA takeover and they had a director who had had enough and was prepared to put his money where his mouth was (aka Mr Morgan). It didn't work out for him but that is the spirit and drive we need, not individuals who are prepared to sit silently and without commitment or passion whilst are club falls further and further behind!!!

Friday 18th February 22:57 Report Comment

Allan Hillbe carefull what you wish for tom hicks is looking for a club,at the time it was said kirkby loss could be the start of a down turn this is now come to pass,the wage rise given to certain players is were our funds are,if all the players on the pitch tried as much as timmy, leighton , sheamus and felly we would not be in the sorry state we are ,did we have a go at the board in the summer ,no,the players will hide behind this.Arteta has not been fit to wear our great shirt fact and we pay him 70 grand a week jonny h seems to think he is a certain starter 60 grand a week ,great captain but phill nev is past his best ,and young jack has not pulled up any trees tim howard 1 good game in ten, ect ect,the players are to blame for us all feeling crap not just the board. well done to all the fans going to chelsea at silly hour in the morn you are a credit to your club

Friday 18th February 22:11 Report Comment

david johnstonI don't know what to believe any more!!!!!!!!!

Friday 18th February 21:45 Report Comment

Amir MissaghiHas there been any investigation into supporter ownership? There are many successful teams with this organization. Further, it seems better than waiting for an enthusiastic billionaire.

Friday 18th February 21:44 Report Comment

Per Arne DragstenFirstly Mr Elstone did not say anything new at all. Secondly, less attractive EFC becomes less money EFC will make: Meaning, no new players in, but selling assests will drag this club further down into disaster. Supporters will use less money on match day and the meagastores etc. Cant se how we can turn this around unless we have some new players in as well making this club more attractive for supporters and investors.

Friday 18th February 20:58 Report Comment

Rob Greavesthe scheme to improve Goodison – a self-funding, cash generating project with a new shop, hospitality, office and museum,means we are not moving anywhere otherwise why build we're stuck with the cappacity stadium which means no increase in revenue or the little the shops and musuem will bring in..we are going nowhere very fast i dont want to sound negative but what we're been told is not the complete increase in revenue =no extra money=no signing=no europe and so on,why build the add on if we're planning to move its just a waste of money we dont have

Friday 18th February 20:55 Report Comment

jo turnerSorry a bit late all this info,the club should have been honest from the start with us.I think the current board have already lost the fans and they won't win them back,hand on heart i don't believe a word off the above

Friday 18th February 20:49 Report Comment

Swelter TheChefCould Mr Elstone let us know if any thought was given to integrating the new retail and admin centre with the Park End stand and at the same time adding an extra tier to the Park End? Seems like a possible win/win solution, Kitbag and Sodexo get their new facilities, and the club get the potential to have a walkthrough for the corporate guests straight into the top tier of the Park End.

Friday 18th February 20:43 Report Comment

Paul HankinsonThanks for addressing some of the rumours that are milling around. We may not like the truth, but at least it sounds like the truth. West Ham have got new investors, and its not been the answer there has it. Stability, and good management make a good and sucessful club. Dispite all the moaning. we would be lost without Moyes. And Kenwright hasn't got the funds we desire, but Moyes seems to think that he has the clubs best interests at heart,and thats good enough for me. COYB

Friday 18th February 20:35 Report Comment

david kennedyAt last some commentary from the club. However, that really doesn't reassure me. It's pretty much a defnce of the current sutuation rather than anything new as a plan to get us challenging our rivals. Sorry, I'm not impressed. Dave.

Friday 18th February 20:30 Report Comment

Anthony kellyPaul Knox,if the City Council gave us Stanley Park,were are we going to get the money to build a new stadium ? We couldn't even afford any loan signings in the last window. The sooner this crowd get out of our club,the better.

Friday 18th February 20:19 Report Comment

David FlintonThe board are backing themselves in to a very dark and murky corner. The funny thing is that the longer they hold on to the club, the more its value diminishes because they have to sell assets of to keep it afloat. This will continue with the sale of players until we don't have a squad that can complete in the premier league any more and we get relegated, which will further decrease the value of the club and their stake. They will try and take some consolation in the fact that Moyes keeps working miracles in the transfer market to fund their dirty little habit but with us only being able to afford cheap youngsters (with potential), this is a very risky strategy indeed.

Friday 18th February 20:16 Report Comment

paul knoxWhy can't we have Stanley Park now they can't afford it?

Friday 18th February 19:57 Report Comment

Craig ShelleyI'd like to know Mr Elstone what you have budgeted for season ticket sales next season. I'm 100% sure the sales will be a lot lower than last season, and again no European revenue.

Friday 18th February 19:50 Report Comment


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