Everton face barriers in search of new investment with club on the brink of relegation
The threat of relegation is a “major concern” for potential investors as Everton look to replace Alisher Usmanov’s money, the Financial Times reports.
All sponsorship with ties to the billionaire was suspended after he was sanctioned in light of the Russian invasion of Ukraine, leaving the club to look for alternative revenue, particularly to fund their new Bramley Moore Dock stadium development.
Dropping out of the Premier League, and the financial hit that entails, is apparently emerging as a key stumbling block in the search, as is the lack of confidence prospective investors would have in the Toffees’ chiefs.
The FT report says: “Four people with knowledge of the financing discussions warned that relegation was a major concern for potential investors, given the club would no longer share in the more than £10bn of broadcast revenue generated by the Premier League.
“One senior executive at a top-flight rival said Everton’s current leadership would “struggle” to convince investors that they are “the right people” to lead the club.”
Sinking ship
The club are in a financial mess already, with The Times reporting this week that when the next set of accounts come out they are set to announce the biggest three-year loss in English football history.
Covid-19 clearly had a major impact, but that affected all clubs, and Everton’s loss of £252million between 2018 and 2020 is more than double the next highest amount in the league.
And it goes without saying that the financial hit of relegation from the Premier League will make these concerns far worse.
While a club is party to the wild riches on offer in the English top flight, they will always be attractive to some investors.
The Times report says the club’s income would “half overnight” if they go down, and put them under more stringent sustainability rules.
With the new stadium to fund, and a major wage bill, that would surely mean an exodus from the playing squad.
It is perhaps no surprise that the leadership are causing themselves problems in seeking investment then.
To have brought the club to this point doesn’t scream reliability, and if the club doesn’t avoid the drop that will be even more glaring.
Frank Lampard’s side is currently only outside the drop zone on goal difference after defeat to Wolves.
In other Everton news, Kevin Campbell has reacted to the latest loss, a result he called “terrible”.
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