Finance Expert: Risk spread by Everton in sensible sponsorship move
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 have finally made a sensible approach across the board with their sponsorship agreements at Goodison Park.
The Athletic has reported this week that the Toffees call their agreements “multi-year” which can indicate flexibility to change and potentially upgrade whenever.
Plumley believes it makes business sense for deals to be structured this way as it gives clubs more scope and spreads risk, with Everton finally making a good move.
“I think it is a sensible approach across the board from the club’s point of view and the organisations that are sponsoring,” he exclusively told Goodison News.
“It spreads that risk a little bit and if you have that flexibility in the deal that is agreed by both parties, the sponsor knows that the club can look up or down, but they also know that they can protect their own position in that and they’re not as an example, overpaying should the worst happen and they drop out of the Premier League, so we’re seeing more and more of this.
“It makes business sense for the deals to be structured in this way.
“Doing things this way and being flexible with your sponsor agreements gives you more scope and spreads the risk, it’s a sensible approach.”
Sensible.
That isn’t the first word that pops to mind when Farhad Moshiri and his decisions are mentioned.
Everton finally making that step is hopefully a sign of good things to come with more investments on the table ahead of the Bramley-Moore Dock Stadium being complete.
Should a new sponsor come up with more finance gain and bigger exposure available down the line, it looks as though Everton will be in position ready to take that up.
Not all clubs in the Premier League can say that.