Everton share price crash: Keith Wyness shares instant verdict on drama
Everton’s former chief Keith Wyness insisted shares in the club should not be seen as a “financial investment” after a collapse in their price.
Speaking on the new edition of Football Insider’s Inside Track podcast, the 67-year-old – who served as CEO at Goodison Park between 2004 and 2009 and now runs a football consultancy advising elite clubs – suggested it would be an “expensive exercise”, costing around £27million, for The Friedkin Group (TFG) to restore value to out-of-pocket shareholders.
As per The Times (23 January), concerned Everton fans estimate that each individual share in Everton is worth less than £175 following the takeover last month.
1,500 supporters own approximately 8,000 shares in the club – but have seen their stake diluted after the total number of shares increased from 135,000 to more than 1.6 million as part of the buyout process.
The report claims there is a meeting scheduled between fans and TFG for this week as they lay out their plans for the club.
Wyness reacts to share price crash at Everton – ‘the reality is…’
Wyness told Football Insider‘s Insider Track podcast: “This is an interesting issue.
“I was a shareholder myself, I had to sell my shares a couple of years ago.
“The reality is that you have to dilute a number of groups in a takeover to bring more money into the club.
“There are now 1.6 million shares, up from about 135,000 before the takeover.
“They were trading at about £3500, now they’ll be worth about £175 – which is obviously a huge drop.
“Many of the fans don’t look at this as a financial investment. It’s a framed certificate above the fireplace.
“There are limited benefits.
“The reality is that if Friedkin has great success, the share value will come back up if Everton are worth £10blillion one day.
“My favourite phrase about shares is that they can go down, as well as plummet.
“There is a meeting coming up with Friedkin soon, there is a possibility that they can restore value to those shareholders – it would cost about £27million.
“It’s a pretty expensive exercise, but they may decide to try and do something. I’m sure they are sensitive to the PR angle – but these are the risks.”
In other news, Everton in new talks as Moyes closes in on three late deals.
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