Dan Plumley: Everton may look for quick cash fix after loan arrangements update
We’re delighted to welcome football finance expert Dr Daniel Plumley as our exclusive columnist. Each week he’ll be giving his views on the biggest talking points at Everton...
Dan Plumley has insisted that Everton are looking for a quick way to generate cash after renewing their loan arrangement with Rights and Media Ltd.
The Finance Expert admitted that the Toffees are reliant on external funding, as well as Farhad Moshiri, but they cannot usually generate fresh cash immediately.
Kieran Maguire even suggested that the loan with Rights and Media Ltd could be the £100million shown in the 2021 accounts of the club, although it may not be.
“I think they are reliant on external funding,” he exclusively told Goodison News.
“They are reliant on the owner, but that is no different to a number of other clubs in the Premier League, so it’s not unusual to be in that position. We also know that more clubs are borrowing against TV rights, we’ve seen that happen as a lot of them want the cash upfront more often to fund activity in the summer transfer market.
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“Everton are reliant on their owner, but that’s not unusual in the context of a Premier League club that is outside of the top six and trying to compete.
“It’s a way to generate cash quickly, it’s ok having wealthy owners but how much money can they realistically lay their hands on instantly if a lot of that is tied up in investments, and then you obviously have the FFP coming into play and equity injections so clubs have found that if you have got favourable terms with these private equity firms and lenders, it’s a way to generate cash quicker.”
Everton need to be boxing smart financially after all of the trouble.
After the big losses that were last posted in the accounts, things like this potential £100million loan are very important moving forward.
All eyes are on the finances at Goodison Park, so Moshiri will no doubt be paying very close attention to anything that can push his club in the right direction.