Everton failed to make the top 20 of Forbes's recently-published list of the world's most valuable football clubs so the Liverpool Echo discussed the club's valuation with financial expert Joe Beardwood.
The business magazine ranks the Blues' supposed peers like Tottenham Hotspur (13th with a valuation of $600million), Newcastle United (18th, $349million) and West Ham United (19th, $309million) all in the top 20 but Everton did not make the cut despite appearing in the Deloitte money league, which tallies revenue and not worth.
In the opinion of Beardwood, who gave a recent presentation to the Shareholders Association, however, the club would likely be a lot lower than people might expect given Everton's place in the Deloitte table.
“Given the guidelines used in this report I doubt that Everton would even be in the top 40," he said.
“Forbes are calculating the final figures by using a club's enterprise value which is your equity minus debt. An issue that Everton have in this respect is that they're in negative equity as they have more debt than their assets are worth.
“When taking all of this into account Everton would be worth around $206million and given that Forbes are using an exchange rate of $1 to 62 pence then that makes Everton Football Club worth around £127million - which for me feels about right.
“Goodison Park is probably worth around £6million to Everton because if it is not going to be used as a football stadium then it's going to be sold for properties or business and that would be a fair value for a piece of land that size in Walton.
“A new stadium would probably cost around £200million and you'd be looking to get a 5% yield from that.
“It would cost around £10million per year to service the debt but how much extra revenue would you make from that?
“”I don't think that Everton need a new stadium. We fill 40,000 at the moment but we're not a corporate club.
“I'd agree that we'd need a new stadium if we were in London but I don't see any evidence that Everton could attract the likes of Vodafone or Microsoft into their ground to buy big boxes.
“Most of the people in the boxes at Everton are Liverpool businessmen who have made good."
Quotes sourced from Liverpool Echo
Reader Comments (24)
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1 Posted 11/05/2015 at 17:05:02
2 Posted 11/05/2015 at 17:10:34
So before anyone else ridicules this article, it states we EARN less from commercial income but SPEND more, hence we buy players from mid range not top end.
Points made here many times explained in black and white
3 Posted 11/05/2015 at 17:15:59
4 Posted 11/05/2015 at 17:23:42
IÃ‚m not a football shirt wearer (except when I actually play football) but I would like to wear Everton-related merchandise but find the choice that I have extremely limited (unless anyone knows differently, please please tell me). Even when I go into shops selling football-related gear, Everton stuff is few and far between. Is a decent fucking polo shirt or hoodie too much to ask?
5 Posted 11/05/2015 at 18:06:17
6 Posted 11/05/2015 at 18:45:23
7 Posted 11/05/2015 at 20:01:30
The report above shows all just how difficult it is to leverage debt against our club so, in some ways, we have it good; in others, we are lacking. EFC retail wins wouldnÃ‚t bridge this gap; it's an easy sound bite that runs well with disgruntled fans, we need serious investment and thatÃ‚s our problem. Blame who you like but it doesnÃ‚t change the situation. Qatar is where our new owners will be from.
8 Posted 11/05/2015 at 20:01:47
We will never be a corporate club while we are unable to offer corporate facilities. Even West Brom have more boxes than we do. Sooner or late,r we will need a new stadium because the present one will eventually fail to meet the standards required by the Premier League and Uefa.
9 Posted 11/05/2015 at 20:47:42
10 Posted 11/05/2015 at 21:14:17
I totally agree with you having been in the business and dealing with these alleged experts in the field for over 20 years.
The biggest problem under these circumstances is trying to convince people who accept the information as gospel is not to be gullible and research for alternative data.
11 Posted 11/05/2015 at 21:42:00
12 Posted 11/05/2015 at 21:35:56
13 Posted 11/05/2015 at 21:50:04
14 Posted 11/05/2015 at 22:29:00
"Goodison Park is probably worth around ٤million to Everton."
"A new stadium would probably cost around 𧶀million."
All I see there are the words Ã‚probably, around, doubt.Ã‚ Words every expert uses when he has a good grasp of the facts! NOT!
The mind boggles. If I submitted this kind of accounting/speculation in my business, I would be laughed out the door.
16 Posted 11/05/2015 at 23:09:25
17 Posted 11/05/2015 at 23:07:08
19 Posted 12/05/2015 at 02:07:27
20 Posted 12/05/2015 at 02:33:55
I thought GP is valued at 㾶 million in our accounts? But then again the market value is subject to many variables like demand, use, demolition costs, etc.
21 Posted 12/05/2015 at 09:40:17
22 Posted 12/05/2015 at 09:39:14
But... I now read figures like 㿼m-䀋m bring lobbed into the debate... whatÃ‚s the real figure and by that I mean the actual amount we owe the offshore mob who loaned us the money in one of an endless stream of allegedly legal but slightly shady deals? I donÃ‚t want to hear phrases like "when player value write-downs are accounted for" or something I canÃ‚t even spell like "amortisation"!! Or whatever... IÃ‚m just keen to know exactly what the real debt is and IÃ‚m sticking with my forecast that itÃ‚s actually a lot closer to 㿔m now than 𧴜m.
All of this only matters if we ever get a buyer as he or she is faced with finding that debt figure, plus allowing certain board members to treble or more their original investment... if it can be called such...and think about a new stadium or a cleverly rebuilt Goodison. Which gets me to this thought: it surely remains the case that a potential buyer is looking at shelling out at least a total of circa, about, around, possibly, maybe 𧹜m if itÃ‚s a new stadium or 𧷤m if itÃ‚s a redeveloped Goodison???
Of course neither calculation includes lobbing in a min of circa, about, around, possibly, maybe, potentially 𧴜m over a couple of years to get player investment to a decent starting point and buying us out of awful commercial deals so we can, er, compete with the BournemouthÃ‚s of the Premier League.
Somehow I see all this as just another reason why we remain unsold and unloved by every billionaire whose ever seen a football match. Sigh.
23 Posted 12/05/2015 at 13:54:45
24 Posted 12/05/2015 at 17:48:51
25 Posted 12/05/2015 at 17:53:05
Has anybody out there found out why we have so much debt? Is it, like many say, a debt we incurred just to keep the club operational? And, if so, what is the true level of debt? Ã‚â€“ 㿚m or the higher figure of 䀋m.
26 Posted 13/05/2015 at 09:32:44
Look across the park at the steady decline going on there. The young talent are itching to get away to spend their money in much brighter lights than Liverpool. The money their investors have poured in has made little impact on on the attractiveness to super stars.
Bill Kenwright and the corporate team are wrestling with an immensely difficult scenario and some of the abuse attached to some (justified) opinions is completely out of order.
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