Jason Burt: Everton finances ‘overstretched’ as ‘deep worry’ emerges in last 24 hours
Everton are “overstretched” and their financial situation is a “deep worry” following a collapsed deal for a company to buy 25 per cent of the club, according to Jason Burt.
Speaking on Sky Sports’ Back Pages Tonight (23 August), the Daily Telegraph journalist suggested that the Toffees’ financial future looks bleak following the collapse of MSP Sports Capital’s deal to buy a stake in the club.
Elsewhere, the club await a hearing regarding Financial Fair Play following years of overspending.
Burt said: “A deal to sell 25 per cent of the club to a company called MSP Sports Capital has collapsed.
“It’s been a poor start on the pitch, but the real sort of worry is not what’s happening on the pitch but what’s happening off it. Obviously, the two things combine. It’s been several seasons of poor performance and massive spending, so you’ve got a very disgruntled fanbase.
“There is that ray of hope of going into the new stadium in Bramley Moore Dock, but now there’s an issue with the financing of the club. This deal has collapsed, and the possibility is that another buyer might be found.
“But if you look at the complex situation around Everton, the finances are becoming very, very overstretched. They are borrowing money from various different lenders and trying to balance the books and trying to make things work.
“They’ve got the backdrop of a looming hearing into the Financial Fair Play issues because there’s obviously an allegation that they’ve breached those rules.
“The financial side of Everton is a real deep worry.”
Troubles in Merseyside
Hope is a hard thing to come by if you’re an Everton fan.
They haven’t been able to catch a break in recent weeks following a poor start to the Premier League season, Dominic Calvert-Lewin again getting injured and now more financial turmoil.
The collapse of the MSP Sports Capital deal will be a tough one to take for Everton’s finances, with The Athletic reporting (23 August) that the “complicated” deal would have seen £100million go to the Everton Stadium Development Company which funds the new stadium while £50million would go to the club itself.
The American company had signed an exclusivity deal with the Toffees in May to take a 25 per cent stake in the club, but the exclusivity period has since expired.
Everton have been active in the transfer market, including the signings of Arnaut Danjuma, Jack Harrison and Youssef Chermiti. However, the amount they have spent over the last few seasons should have reaped more rewards for the Toffees who find themselves at the foot of the Premier League table.
The stadium development looks to be the single silver lining in Everton’s long battle with financial woes and once it is up and running they will see a boost in matchday income.
That being said, they will need to remain in the Premier League if they want to make the most out of Bramley Moore Dock, and currently many expect the Toffees to be scrapping to stay in the Premier League once again this season.
In other Everton news, Seamus Coleman has shared an update following his knee injury.