Everton set to announce major new investment amid financial worries and stadium development
Everton are close to announcing new investment that means funding for the new stadium is “absolutely there” says the Liverpool Echo’s Adam Jones.
After the club moved to cut ties with Alisher Usmanov after the Russian invasion of Ukraine there were concerns over the financial situation at the club, which were compounded when the club announced significant losses in the most recent accounts.
The Toffees agreed a deal yesterday (13 April) with Laing O’Rourke that “locks in costs for the club, preventing the final bill from spiralling” (Guardian) as happened with Wembley and the Tottenham Hotspur Stadium.
The total cost is therefore expected to be around £500million, and Jones has reassured a commenter on the Echo’s Q&A that between the set-to-be-announced new investors, and the ongoing commitment of owner Farhad Moshiri it is definitely covered.
He wrote: “In terms of stadium funding, the money is absolutely there – there’s no question.
“A number of private investors have been identified and the club is nearing the announcement of that deal, meanwhile they still have significant investment from Farhad Moshiri.”
Good news, for now
It has been nothing but doom and gloom on the financial front since the club had to scramble to suspend its relationship with Usmanov over his links with Vladimir Putin.
The billionaire had been a major backer via his company USM, leaving a considerable hole in the funding without him.
When the most recent accounts were released and showed a Covid-19-affected period had seen losses of nearly £121million, and that the wage bill had risen to account for 98% of revenue it appeared the club was heading for disaster.
That is still a situation that requires major work, but with the stadium development well under way any shortfall in funding could lead to a Valencia-style situation of it sitting half finished for years.
The club’s status in the Premier League is still under threat, which makes investment a less attractive proposition.
But if the owners have found some suitable candidates that is a positive development.
The hope has to be that the leadership have not gotten into bed with any dubious characters through a lack of preferable alternatives.
But for now it should serve as a reassurance that there is enough backing to avoid any imminent doomsday scenarios.
In other Everton news, an ex-Toffee Sky Sports pundit enjoyed the “bulletin board material” Sean Dyche provided Frank Lampard coming back to bite him.
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