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News
Everton have just weeks to resolve £70m issue or will be in big trouble
The Everton takeover saga has now been rumbling on for almost two years in total – and we are no closer to knowing what the future holds for the club.
Against a backdrop of Profit and Sustainability issue🦩s and the transition aw🍸ay from Goodison Park, the club has had several failed takeovers.
Peter Kenyon, 777 Partners and now Dan Friedkin all signed heads of terms with Farhad Moshiri but either failed to have a🌜 deal ratified or backed out of their own accord.
In the latter’s case, AS Roma owner Friedkin is believed to have b𓄧een concerned about the club’s £200m debt with 777 Partners, ꦺwho have been accused of fraud in the United State꧋s.
So what next for Everton? We know that there is no shortage of investors waiting to pick up where Friedkin left off, but will concerns about dꦑebt ಌand cash flow remain?
To find out the answers, TBR spoke exclusively to Liverpool University football finance l😼ecturer and Price of Football author Kieran Maguire.
Everton told not to worry about changes to Premier League takeover rules
When Moshiri does eventually find a buyer willing to go❀ through with a deal, their takeover wiꦐll need to be ratified by the Premier League.
😼It does not appear that any of the investors currently in the frame would have great struggles passꦛing the owners’ and directors’ test.
However, a new Premier League rule change means Everton will have to reimburse the league for legal and administrativeܫ costs incurred as a result of the takeover.
But Maguꦰire does not believe that, desp෴ite the club likely to fork out a seven-figure fee for this, the fees will represent a hurdle in the takeover process.
“I don’t think this will be an issue for an investor is concerned.
“They will already be paying a significant amount to legal professionals, bankers, accountants.
“It won’t make or break a deal. They can always sell a youth player, or make a saving somewhere else.
Public funding for Everton’s new stadium at Bramley Moore Dock?
The move to the new stadium at Bramley Moore Dock will be transformative for Ever🦩ton, with the club expected to more tha♛n double their current matchday income from the 52,888-seater ground.
However, the fact that – even with🎃 loans f♕rom 777, Friedkin and a third group, Rights and Media Funding – the stadium is not yet fully financed is a source of anxiety.
Everton 💝need an extra £70m to see the project through to completiཧon ahead of the 2025-26, when they are expected to move in.
One potential source of funds is the public 🍷purse.
Everton had previously agreed a deal with Liverpoolꦫ City Council for significant funds towards the stadium, althougꦐh that agreement was eventuallyౠ abandoned.
There is a precedent for taxpayer-funded initiatives like this. Tottenham secured around £30m of funds for their new stadium🌠 in 2019, while Man United are💫 also exploring this route.
The election𓃲 of the new Labour government has also prompted more hope of increased government support for private projects.
And 😼this would be an attractive option for Everton, explains Maguire.
“As long as it doesn’t go directly to a private company, general infrastructure investment as part of a broader job creation and economic regeneration is no different to EU grants we used to get on Merseyside before we left the EU.
“So I don’t see a problem with public funding. It’s just a case to go through the appropriate process correctly.
“It is in Liverpool City Council’s interests to have more business paying more rates generating more money. That is the logic behind it.
“Bramley Moore, in terms of local and national support for transport links, I don’t think is a problem.
“In terms of the council borrowing money to fund a private company, I think that is a more contentious issue.
“It can be argued that there are other issues that should take priority. And in a two-club city, that will also cause friction.
Everton have until end of October to resolve cash issues
It has become apparent in recent months that Moshiri does ꦯnot have the resources to fund the club.
Problems began in 2022, when benefactor Alisher Usmanov was forced to caꦦncel several sponsorship deals with the club because of his links to the Russian state.
Everton meanwhile have huge costs to cover, including one of the worst wage🅰s-to-turnover ratios in the Premier League and ♏an amortisation bill of around £80m.
Cash flow and the club’s ability to fund its operating costs will start to be📖come an🗹 issue if the takeover situation does not reach its conclusions soon.
“We effectively have an egg timer running in terms of Everton’s cash flow,” said Maguire.
“They were being supported by 777 to the tune of around £20m per month, the vast majority of which was going towards Bramley Moore.
“That project still has outstanding costs of around £70m.
“Everton’s wage bill is around £14m per month. Goodison Park generates less than £1m per match in ticket sales.
“They have received their first instalment of cash from the Premier League for 2024-25, so they are cash-rich at present.
“They have got the Onana sale, which was £50m and they might have got 50 per cent upfront.
“I think they are probably fine until we get to the end of October. After that, you start wondering where the money is going to come from.
“There is also the fact that Friedkin has to be repaid in 2025. That’s not an immediate issue, but we saw with 777 that takeovers can be very long processes.
“For all the criticism the Premier League have received, they have done a good job in preventing 777 from getting in. I think that would have been a disaster.”