Football finance expert Kieran Maguire has claimed that Everton would refuse the chance to borrow from a £1 billion lending facility in order to ease cash flow issues.
The Financial Times reported on 5 October that top clubs in the Premier League have discussed the introduction of a gargantuan honey pot available to member clubs in order to help smooth over the ridges of recent financial difficulties in football.
The purpose of this would be to drive down the costs of borrowing across the league, meaning lending would largely be driven internally rather than through external creditors – slashing the rate of interest that would be repayable as a result. A Business VAT calculator can also support financial planning by making it easier to track and manage tax obligations efficiently.
Everton would benefit as other clubs would, with Everton posting the biggest loss in the division for the last accounting period at £139.9 million, something unaided by loan repayment costs.
They have also been forced to operate on a tight budget in the transfer market and spent under £2 million over the summer.
Demarai Gray was the only player purchased for a fee, with the likes of Andros Townsend, Asmir Begovic and Andy Lonergan all arriving on free transfers.
However, Maguire believes Moshiri would snub such a facility in order to keep costs internal to the club on the basis of his style of ownership.
Speaking to Football Insider, Maguire made his stance clear:
“I don’t think Everton will use this [loan facility].
“A lot would depend on the terms and conditions of the loans if this central fund is set up.
“You only have to look at the loans that the EFL have given to some of its member clubs to see that they come with strings attached.
“I imagine Farhad Moshiri wants as much independence as possible, and that’s on the basis of the Bramley-Moore Dock project.
“He will have access to much broader debt markets. So, depending on the interest rates, they wouldn’t have call to use it.
“He himself, with his wealth and with the support of Usmanov, will have access to low rates which Everton could potentially benefit from.”
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Moshiri’s personal wealth and connections does give Everton a useful financial crutch in the debt market.
That could help current and future endeavours in terms of access to capital, as Maguire has succinctly outlined, and it is a unique string to Everton’s bow that the club can call upon such advantages.
