Farhad Moshiri has proved his commitment to Everton by converting £100million’s worth of loans into equity.
That is according to finance guru and Football Insider columnist Kieran Maguire, speaking exclusively after it was revealed that the owner had taken his shareholding in the club to 92.2 per cent with a £200m cash injection.
Of this sum, £100m came in the form of separate £50m payments in November and February.
No actual cash changed hands in the debt-to-equity deal which made up the other £100m, but the club’s balance sheets look healthier as a result.
Maguire elaborated on the specifics of the arrangement, explaining how the move displays the 65-year-old’s dedication to the Everton project.
He told Football Insider correspondent Adam Williams: “This is money that he’s lent the club that’s been converted into equity. Instead of Moshiri being owed £100m by Everton, he’s now got £100m more in shares.
“It’s just a housekeeping exercise. If he comes to sell the club, he’ll still get the same amount of money, though I don’t think that will happen any time soon.
“West Ham, for example, don’t convert their loans into equity because Gold and Sullivan both charge interest on the loans.
“As far as Moshiri was concerned, I think initially he wasn’t certain of the relationship and just wanted to be a little bit cautious. Now, he’s effectively all-in.”
Moshiri has underwritten enormous losses in his five-year reign as majority shareholder at Everton.
The club recorded a whopping £139.9m loss in their last set of financial results and have turned a profit just once in their last six set of accounts.