“New Owner, BIGGER problem” Everton may have been HIT with financial PENALTY as £225m Dan Friedkin development confirmed

Everton’s new owner, Dan Friedkin, has made significant progress in tackling the club’s debt situation, which had been a major concern for the Toffees. Friedkin has restructured the debt and reduced the short-term burden on the club, providing some much-needed breathing space.

One of the major developments in this regard is the settlement of the £225m loan with Rights and Media Funding (RMF), which had an interest rate of over 10%. This loan had been a significant drain on the club’s resources, with Everton paying £22.5m in interest per year.

Friedkin is believed to have personally struck a new deal with JP Morgan, which has taken over the loan. While the exact details of the deal are not publicly known, it is likely that Everton have paid an early termination fee to RMF to settle the loan.

This move is expected to have a positive impact on Everton’s finances, particularly in terms of their Profit and Sustainability Rules (PSR) compliance. The club had been struggling to meet the PSR requirements due to their high debt levels and interest payments.

However, it’s worth noting that the benefits of this deal may not be immediate. According to football finance lecturer Kieran Maguire, the marginal PSR benefit in 2024-25 will be limited, and it’s only in 2025-26 that Everton can expect to see more significant financial benefits.

The new stadium at Bramley Moore Dock is also expected to have a transformative impact on Everton’s finances. The stadium is expected to generate an additional £40m per season in commercial and matchday income, which will provide a significant boost to the club’s revenue.

Overall, Friedkin’s efforts to tackle Everton’s debt situation and invest in the club’s infrastructure are expected to have a positive impact on the club’s finances and competitiveness in the long term.

Key points:

• Dan Friedkin has restructured Everton’s debt and reduced the short-term burden on the club.
• The £225m loan with Rights and Media Funding has been settled, with JP Morgan taking over the loan.
• Everton are likely to have paid an early termination fee to RMF to settle the loan.
• The deal is expected to have a positive impact on Everton’s PSR compliance and finances.
• The new stadium at Bramley Moore Dock is expected to generate an additional £40m per season in commercial and matchday income.