Everton and the Premier League have had a turbulent relationship in recent years, with the Toffees becoming the first team to be sanctioned for Profit and Sustainability breaches.
This saga unfolded against a backdrop of takeover uncertainty at Goodison Park, which has persisted for nearly 18 months.
British-Iranian billionaire Farhad Moshiri appears unable to fund the club effectively after years of poor cost control. Everton has one of the worst recruitment records and wages-to-turnover ratios in the Premier League.
Both Peter Kenyon and the Miami-based investment firm 777 Partners failed to complete a takeover despite exclusive talks.
More recently, AS Roma owner Dan Friedkin also withdrew from negotiations after signing heads of terms with Moshiri, citing “unresolvable issues” related to the club’s £200 million debt with 777.
In the latest development, Everton may have to pay millions when the takeover situation is resolved. The club is set to cover Premier League legal costs associated with the takeover process.
Everton fans hope this will be the last official engagement with the league for some time, but the new owner will need to pass the Owners and Directors’ test and prove they have the capital to fund the club’s operations and service its debt.
Finance expert and former Man City adviser Stefan Borson highlighted a new rule change in the Premier League’s official handbook.
Clubs must now reimburse the Premier League for legal and administrative costs associated with a takeover.
This means Everton’s new owners will likely incur a seven-figure sum in legal expenses.
Moshiri can no longer afford to stay at Everton, as the club spends millions per month on interest repayments and has a bloated wage bill.
While cash flow is not an immediate concern, the club’s PSR position indicates they won’t need to sell players cheaply this summer.
However, if the takeover situation remains unresolved, cash flow anxieties will become more pressing.
Experts suggest that Everton has until the end of the year before cash flow becomes a critical issue, necessitating contingency plans.
Everton is reportedly pursuing Corinthians attacker Yuri Alberto, but significant signings may need to wait until the club’s future is secure.
Alberto is also a target for West Ham, which does not face the same financial concerns as Everton, giving them greater bargaining power.
Overall, Everton’s financial and takeover challenges highlight the need for a swift resolution to ensure the club’s stability and ability to compete effectively in the Premier League.
