Premier League relegation could lead to Everton bill after Farhad Moshiri decision
Everton will be required to re-pay a £150million loan if they are relegated from the Premier League this season, according to the Daily Mail.
It is understood that immediate repayment of the outstanding loan, which was extended from £100million to £150million by Everton owner Farhad Moshiri last season, can be triggered by relegation.
The news comes after the Toffees announced their “Catastrophic” financial results on Friday (31 March), with the club recording a fifth successive year of losses.
“The catastrophic state of Everton’s finances is underlined by an outstanding loan of £150million, immediate repayment of which can be triggered by relegation,” according to the Daily Mail.
“The loan agreement includes ‘a covenant that assumes the club will remain in the Premier League, therefore the board have had to consider the scenario of relegation and the availability of these facilities in that scenario.
“The [loan] providers have indicated that they remain supportive to [Everton] under each scenario. However, at the time of approval of the financial statements, there are no contractual commitments in place that would guarantee a waiver of the amounts payable in full or in part and therefore relegation would require a material repayment of debt as per the contract.’”
Desperate times
The Toffees perhaps thought their difficulties were behind them when they managed to avoid relegation from the Premier League.
But it seems their issues have only just begun, with administration even potentially on the cards if the club fall foul of the Premier League’s Profitability and Sustainability Rules (PSR).
Everton remain adamant that they have followed all rules and so are innocent of the charge they face, but those involved will definitely be concerned at how everything will pan out over the next few months.
Issues over the club’s new stadium are also on their minds, while there is of course the small matter of what is happening on the pitch, with Everton just one point off the relegation zone and three points off rock bottom.
Sean Dyche’s men host Tottenham on Monday (3 April) in the knowledge that a loss is out of the question, having watched the likes of Bournemouth and Crystal Palace both pick up three points in their matches this weekend.