Everton: The Esk reacts £30m news emerges from Goodison Park
The Esk believes that Everton made the wrong decision to go with Rights & Media Funding after ICBC informed them they were pulling out of the UK.
This comes after news emerged on 12 April that the Toffees had paid £30million in interest payments to an “opaque” lender associated with a tax exile.
Bill Kenwright, back then, had described them as a long-time friend of the club and the debt is now north of £500million.
Via Twitter, the Esk, an expert on all things financial from Goodison Park, wrote: “When ICBC informed Everton that they were withdrawing from the UK corporate banking market, Everton could have found another mainstream lender. Instead they chose a more expensive ‘long time friend of the club’ as Bill Kenwright put it.”
Everton cannot allow these kinds of financial decisions
The club’s financial situation could have been different if they had made more prudent financial decisions.
For instance, when ICBC withdrew from the UK corporate banking market, they could have sought out another reputable financial institution instead of opting for a more expensive lender with connections to a tax exile.
By choosing the latter, Everton subjected themselves to high-interest charges, which significantly impacted their financial stability.
Additionally, if the Toffees had been more transparent in their accounting practices and avoided changing their policies to exclude interest charges from their profit and loss account, they might have been able to better assess their financial health and make necessary adjustments to their spending.
This would have helped them avoid breaching the Premier League’s profitability and sustainability rules multiple times.
Better communication and collaboration with the Premier League regarding their financial situation could have helped them avoid further points deductions and maintain their position in the league and it’s all a bit chaotic now.
In other Everton news, Ian Wright has savaged a senior figure at the club after a fresh development has emerged with regards to PSR and the 777 Partners takeover.
For more Everton news, follow us on Facebook or join our brand new WhatsApp Channel for instant updates to be sent straight to your phone.