Kieran Maguire

Mon 21 March 2022 16:00, UK

Potential investors in Everton could be deterred by the minimum “£90million hit” that awaits them if they are relegated this season.

So says finance guru Kieran Maguire, speaking exclusively to Football Insider about the financial significance of Everton’s fight to beat the drop.

The embattled Toffees, who are just three points above the relegation zone, have recorded over £250million worth of losses in the last two seasons.

Government sanctions mean they are now also without the circa £30m per year generated by Russian tycoon Alisher Usmanov’s sponsorship deals.

An Everton source told this site today (21 March) that there is “big panic” in the boardroom about the consequences of being unable to comply with financial fair play.

Per the Financial Times last Wednesday (16 March), Everton are in talks over options to strengthen their balance sheet, including raising equity.

But Maguire warned that the drop-off in broadcast and commercial income that would follow relegation will be offputting for prospective investors.

“From an investor point of view, you’re looking at future cash flows,” he told Football Insider‘s Adam Williams.

“Everton had been making just under £190m in revenue in the Premier League before the pandemic.

“In the Championship, the broadcast income that they have been generating, which is about £130m per year, would drop to £40m, so a £90m hit.

“It’s unlikely that Everton would be able to maintain their commercial level in the Championship as well.

“If you’re being broadcast in the Premier League, you’re going out to 197 different countries.

“The EFL just doesn’t have the same footprint. That is a consideration from a commercial point of view.”

Everton were thumped 4-0 in the FA Cup quarter-final at Crystal Palace yesterday (20 March).

They return to league action away to West Ham after the internatounal break on 3 April.

In other news, Everton board now “frightened to death” of “severe” punishment from Premier League.