Everton: Farhad Moshiri lands himself in hot water yet again as £150million loan news emerges
Everton majority shareholder Farhad Moshiri has yet again landed himself in hot water as the club are reportedly required re-pay a £150million loan if they are relegated from the Premier League.
According to a Daily Mail report on 1 April, it is understood that immediate repayment of the outstanding loan, which was extended from £100m to £150m by Moshiri last season, could well be triggered by relegation.
The news comes after the Blues announced their “catastrophic” financial results on Friday [31 March], with the club recording a fifth successive year of losses reported at £44.7m for the year ending in June 2022.
“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.
And according to the Times on 31 March, the Toffes have been warned there is a “material uncertainty” over the club’s ability to trade as a growing concern should they be relegated.
Business expert Mike Gow took to his Twitter account [31 March] to reveal documents of Everton’s financial statements from the 2016/17 campaign to 2018/19, which could “absolutely terrify” fans and revealed the obvious ramifications that the future of Everton football club is in doubt should relegation occur.
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 the damaging prospect of administration even potentially on the cards if the club fall foul of the Premier League’s Profitability and Sustainability Rules (PSR) after being referred to an independent commission over an alleged breach of financial fair play rules, according to The Athletic [24 March].
The rotten nature of how the club is run from top to bottom is slowly getting exposed and it’s not a good look for the people at the top.
Years of mismanagement and incompetence are finally being brought to the fore for which the board and Moshiri should be held accountable and put under further scrutiny for the manner in which they have handled the clubs affairs.
It seems as if the controversy surrounding the Everton majority shareholder is never-ending, having recurring problems with the club fans, and the sorry financial state of Everton football club.
This £150m loan bill news cannot come at a worse time for the club, it is indeed catastrophic, especially with their new stadium project ongoing which only is certainly likely to lead to even higher costs incurred, so imagine the huge ramifications should they fail in their quest to secure their Premier League safety.
Everton may remain adamant of their innocence regarding the FFP investigations but the board and Moshiri can no longer hide, as they have done for so long, in regard to the future state of such a prestigious and historic footballing entity.
Poor recruitment. Years of mismanagement and incompetence and more crucially, a lack of transparency towards the club fans. They have completely run it into the ground.
Are they to blame for any potential relegation mishaps? Certainly.