Everton accounts to show £35million profit on Richarlison sale to Tottenham
The Everton accounts will show the club made a profit of £35.2million on the sale of Richarlison to Tottenham, according Kieran Maguire.
The football finance expert from the University of Liverpool has broken down how the impending transfer of the Brazilian star will be recorded on the accounts for the period ending 30 June.
Pressed to get a deal done before that deadline the club may have had to accept less on the move in order to show profits against the major losses that have racked up over recent seasons.
A deal with Spurs was eventually agreed that could rise to as much as £60million if add-ons are reached, but the up-front price is £50million [Sky Sports].
A sell-on fee due to previous club Watford comes into the equation along with the accounting method of transfer amortisation, which spread out the £40million purchase price in 2018 when he arrived from the Hornets.
A contract extension a year and a half later then further spread the cost out up the end date of the new deal which would have been in two year’s time, leaving his “book value” as of now at £12.8million.
Maguire wrote on his Twitter account on Thursday afternoon (30 June): “Purchase price £40m 2018, contract until 2024 as signed extension in Dec 2019 when book value £29.3m.
“Book value at 30 June 2022 therefore £12.8m (£29.3m x 24/55). Sale proceeds guaranteed £50m so profit £37.2m less £2m for Watford”.
He then clarified the amount to Watford in the comments as: “20% Share of cash profit on deal (£50m-40m)”.
Numbers crunched
Based on the losses that have built up to over £300million in the past three season [Guardian] that profit won’t make a massive dent.
It won’t please fans that the Toffees have been forced to let go of their prized asset to satisfy financial problems, but the hope will be now that once the end of June deadline passes Frank Lampard can get to work on incoming business.
James Tarkowski should be announced imminently, and while there is not going to be anywhere near the money that was available when Richarlison was signed there should now at least be a bit of room for the manager to manoeuvre.
He has been linked to various players at his former club Chelsea, who themselves made a late play to sign the new Spurs man and included a player in the offering.
Who he can bring in to strengthen particularly the midfield, and to fill the gap in attack left by the 25-year-old, will have a major bearing on how far up the table he can take this team in the new season.
He, and the fans, are stuck dealing with the consequences of the spending patterns at the club in recent years, and while there is a takeover on the cards the transfer market fireworks of seasons gone by are unlikely to resurface soon.