Kieran Maguire can't believe £150m offshore Everton controversy - 'this is highly unusual'
The lending agreement Everton have in place with opaque financial institution Rights and Media Funding is “highly unusual” for a variety of reasons.
That is the view of finance guru Kieran Maguire, speaking exclusively to Football Insider about the latest details emerging from behind the scenes at Goodison Park.
An investigation published by The Guardian last Sunday (13 November) found that the Toffees have borrowed £150million from Rights and Media Funding Limited.
The organisation does not have a single employee and largely operated behind a veil of secrecy, with no website, phone number or Financial Conduct Authority registration.
Additionally, over half of the company’s loan book is attributed to Everton and the firm has itself borrowed from numerous offshore lenders.
Maguire analysed the financial mystery.
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“Everton’s decision to borrow from Rights and Media Funding does raise eyebrows,” he told Football Insider’s Adam Williams.
“They are a company that has no employees, does not even have audited accounts and has a total loan book of £190m, of which Everton appear to have between half and three quarters.
“From a financial perspective, it is highly unusual for any organisation to lend half of its total loan book to a single borrower because of the potential risk.
“The whole nature of banking is that when you do lend money, you have a portfolio of borrowers so that if one is in financial distress, the others allow the financial institution to carry on.“