EXCLUSIVE: Everton’s Potential bidders should take a CLUE From Newcastle as the £400m valuation placed by Moshiri is feasible BUT…

The Valuation of Everton Football Club: A Realistic Perspective

The recent reports of a £400m bid for Everton Football Club have sparked a debate about the team’s true value. While some may see this figure as a fair price, finance expert Dan Plumley believes that it is inflated and that a more realistic benchmark is the £300m paid for Newcastle United in 2021.

To understand why Plumley holds this view, it’s essential to examine the factors that contribute to a football club’s valuation. One of the most significant considerations is debt, and Everton’s £600m external debt is a substantial burden. Any potential buyer would need to take on this debt, which would impact the club’s valuation.

Another critical factor is the potential for revenue growth. While Everton’s new stadium at Bramley-Moore Dock offers opportunities for increased revenue, the club’s financial situation is complex. The stadium’s construction costs and the need to pay off debt will limit the potential for significant profits in the short term.

Plumley’s assessment of Everton’s valuation is also influenced by the sale of Newcastle United. The £300m paid for the Magpies in 2021 is a more realistic benchmark for Everton’s value. Both clubs have similar revenue streams and debt levels, making Newcastle a suitable comparison.

Farhad Moshiri’s Investment and Expectations

Farhad Moshiri’s investment in Everton has been significant, and he will undoubtedly want to make a profit when selling the club. However, the amount of debt to be paid off limits the potential for big returns. Moshiri needs to be realistic about the price he can get for the club, considering the financial situation and the potential for growth.

The Takeover Situation and Clarity for Supporters

The takeover situation at Everton is complex, with various parties interested in purchasing the club. However, the lack of clarity on the progress of these talks is frustrating for supporters. They deserve updates on the club’s future, and it’s essential for the parties involved to provide transparency on the negotiations.

In conclusion, while the reported £400m bid for Everton may seem attractive, it’s essential to consider the club’s financial situation and debt levels. A more realistic valuation is around £300m, similar to the price paid for Newcastle United. Farhad Moshiri needs to be realistic about the price he can get for the club, and clarity is required on the takeover situation to provide supporters with the information they deserve.