Everton: Ominous stadium update as £20m interest charge revealed amid speculation new development could be sold off
Everton Stadium Development Limited are now being charged interest at “market rates” by the parent company, according to The Esk.
The Toffees specialist has reported the appearance of a new £20.74million charge in the club’s most recent set of accounts, owed to Everton Football Club Company on top of a vast increase in the overall debt between the two companies, suggesting ESDL may not remain wholly owned by EFCC in the future.
This comes amid the suggestion from the Daily Mail’s Ian Herbert on 4 April that the new dockside stadium development may have to be sold off in the future, with the team becoming tenants instead of owners if relegated, due to the worrying financial situation that the same accounts uncovered on 31 March.
Reporting on Twitter on Tuesday afternoon (18 April) The Esk wrote: “An interesting change in the treatment of inter-company debt between Everton Football Club Company (the parent company) & its wholly owned subsidiary Everton Stadium Development Limited.
“In the 2020/21 accounts at year end, ESDL owed its parent company £56.2m. No interest was charged on this debt.
“In the 2021/22 accounts at year end, ESDL owed its parent company £280.9m. However interest is now charged to ESDL at “market rates”. That charge is £20.74m.
“Why the change from no inter-company interest charges to market rate charges? Perhaps this is an indication that in the future ESDL will not always be wholly owned by Everton Football Club Company & thus has to meet the cost of the capital deployed in the building of the stadium.”
Ominous
It is easy to read too much into things without transparency from the club, but when the new stadium has been held up as the shining beacon of hope for so long anything which suggests that ideal is off course is a concern.
Until very recently there was some solace for fans in improved performances on the pitch under Sean Dyche, but after two straight defeats in decidedly flat fashion the fears for relegation are again major.
The prospect of going down was always going to spell huge turmoil for the club but the release of the accounts has really brought that home, with a Premier League charge hanging over Everton even if survival is secured.
New investment followed by changes at the top has been reported as “imminent” [Sky Sports, 17 April] and it really cannot come fast enough.
It is beyond clear that financial help is desperately needed, but that alone won’t save the situation when the figures who oversaw the Toffees sliding into this predicament remain in charge.
Fans will have to hope that those changes at the top are sensible ones and some reliable operators can be put into positions of influence, because this club has been pushed to the brink.
Moving into the sparkling new stadium as anything other than a Premier League club would be painful, but to not even be owners would be disastrous.