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 still an attractive investment proposition after they were valued at $940million [£804m] by Forbes this week.
Forbes released the 20 most valuable clubs in the world, with the Toffees sitting in 16th on their list with a 43% value change over the last couple of years.
The Finance Expert admitted that not all is what it seems though, with profits and losses not looked at, it is just down to revenue and operating incomings, making it a better picture than what it appears.
“This is some of the issues with the Forbes values as it doesn’t look at profits or loss,” he exclusively told Goodison News. “You have operating income but it’s all kind of revenue based and then there is some stuff in there on debts and stadiums.
“It doesn’t take into account FFP losses and the overall profitability of the club so that’s where the values are high versus some of the models we use. We’ve spoken about Everton in the past being, at the minute, more like £300million, and that’s more than £750million at a rough conversion, so these Forbes values are always slightly inflated.
“It’s obviously really positive for Everton and the new stadium will be a factor in this so they are still an attractive investment proposition, but I think that value in the Forbes list is very high as it doesn’t take into account the problems they’ve had on a bottom line balance sheet level for the past three or four years.
“It perhaps looks a better picture for Everton on this list perhaps versus other valuation models.”
So, although it appears very rosy on paper, there is much more to it.
With the new stadium coming through and work being done to improve the financial picture on and off the pitch, that revenue is surely set to soar again in the coming years.
Farhad Moshiri will be working on those mentioned debts with the potential for more investment coming from the outside as the likes of the Kaminski Group continue their interest [Liverpool ECHO].
All eyes are on the blue half of Merseyside.