Everton’s latest set of financial accounts provided an update on the search for both the search for funding for the stadium and investment into the club itself.
The Toffees made public their accounts for the 2021/22 season, the year ending June 2022, on Friday, with the latest set of financial results revealing a £44.7m loss for the club.
While down £76m from the £120.9m that was seen the previous year, and with the club’s wages to turnover ratio coming down considerably, the latest results saw Everton post a fifth consecutive loss and take their combined losses for the past four years to around £415m.
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The club have been open on their search for both investment into the club via the sale of an equity stake, as well as the hunt for funding for the remainder of the £500m stadium build that is now beyond the halfway point on the banks of the River Mersey at Bramley-Moore Dock.
Last year saw the breakdown of talks with a consortium featuring former Manchester United chief executive Peter Kenyon, US real estate tycoon Maciek Kaminski and oil magnate John Thornton. The two sides had entered into a period of exclusivity before talks around a deal were ended.
In January it emerged that New York-based investment fund MSP Sports Capital, a firm led by billionaire Jahm Najafi and former sports super agent Jeff Moorad, were in talks over taking on some of Moshiri’s shareholding, with the Everton owner seeking to bring in fresh capital as well as finding a partner that could accrete their own stake and eventually give him an exit plan.
Najafi, Moorad and MSP Sports Capital vice president Peter Taylor were all seen at Goodison Park in January to watch the defeat to Southampton, while other potential interest in taking a stake in Everton emerged with Miami-based 777 Partners, owners of clubs including Genoa and Hertha Berlin, linked.
Sources had told the ECHO that MSP remained in talks with Everton, although there has been the suggestion that the US firm have cooled their interest somewhat.
But the latest set of accounts hinted that some form of investment could soon materialise, although there was a degree of caution attached.
A statement in the club accounts read: “The Club is in advanced negotiations for additional long-term funding which we are confident will conclude favourably, however, the Board have acknowledged as part of their going concern preparations that at the date these financial statements are approved, there is no contractual commitment to this funding, and as such cannot be guaranteed.”
The club’s position has been that talks have been ongoing with potential investors into the club itself, although the identity of those involved has not been explicitly stated.
With regards to the stadium position, around half of the funding is still required.
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Sources in the US financial industry told the ECHO earlier this year that there had been a number of options presented to the banks tasked with sourcing the funding, namely JP Morgan Chase and MUFG. Those talks, as recently as a fortnight ago, were still said to be taking place, according to those in the US.
Heads of terms have, according to the club, been agreed. However, another note of caution has been attached.
A further statement in the accounts read: “The Club is also in advanced negotiations to secure the next stage of funding for the Bramley-Moore Dock development for the new stadium.
“Heads of terms have been agreed in this regard and we expect to have concluded in the next couple of months. However, these are not legally binding as at the date of approval of the financial statements and thus also cannot be guaranteed.”
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