Ex-club owner shares £850m Everton calculation, suggests Leeds United takeover instead for 777 Partners
Charlie Methven has suggested 777 Partners may be better off purchasing a club such as Leeds United due to the huge cost of simply making Everton sustainable.
The American investment fund has already agreed to purchase Farhad Moshiri’s full 94.1% stake in Everton, but they are awaiting ratification from the Premier League, FA and the Financial Conduct Authority to complete its purchase.
Speaking on the Where’s the Money Gone? podcast with Adrian Goldberg [7 November, 10m 15s], former Sunderland part-owner Methven claimed it may cost 777 around £850million before even factoring in any payments made to Moshiri.
“I was doing some calculations on the kind of money we’re talking about here in terms of the level of debts that need to be paid off, the stadium costs that need to be completed and in terms of the running costs of the club in the meantime,” Methven said.
“When you tot it all up, my estimations get to about $1billion, £850m, that type of figure. And that is before you pay a single penny to Farhad Moshiri, the current owner. That’s the conundrum.
“Even in its new stadium right now, which they’d fill every match, their matchday revenues would ultimately be around £50m a year, which is half of Tottenham Hotspur’s. Their new stadium does not transfer Everton into a top-six club.
“It makes it much more likely they could become a sustainable top-10 club, but the question is, are you going to pay a billion for a club with potential to be a top 10-12 Premier League club when there are other clubs such as Villa, Leeds, who are just as big and have more city dominance, particularly in Leeds’ case?”
New era
This figure of £850m – or in excess of a billion when factoring in the debt they would be taking on and actual takeover costs – is a truly staggering amount.
Given all the question marks with regards to 777 and just how the Americans intend to fund the purchase, not least the day-to-day running of the club, Everton supporters have every right to be fearful.
However, to suggest Leeds would be a better club to purchase is wide of the mark. Everton remains a club just waiting to explode, and this move into a state-of-the-art new stadium should usher in a new era.
Assuming 777 has the upfront finances to push through this deal – and there will be no reason why that will not be the case if they are given the green light by the relevant authorities – then it will be on the team to stay in the Premier League.
With the revenues from TV deals, plus a hugely increased matchday revenue – even if half that of some top-flight rivals – there will be plenty of money coming into the club.
Still, you have to wonder exactly why anyone in their right mind would ever consider owning a football club with this type of money on the line.
In other Everton news, a BBC journalist has shared an update on the takeover situation on Twitter.