Everton’s valuation drops by 21%

09/06/2023 32comments  |  Jump to last

It’s no surprise that the continual slide of Everton’s place in the realm of world football should see a substantial decline in valuation, as estimated by Forbes magazine.

Last year, Forbes valued Everton at $940m (~£820m) in their comparable assessment, with Everton 16th, and the 7th most valuable Premier League club.

This year, that valuation has dropped by 21% and they have slid to 25th place out of the Top 30 clubs, based on revenue, with a current value of US$744m (£597m).

As such, they are now valued below the other 12 English clubs listed – including Leicester City, who have suffered relegation to the Championship. 

Article continues below video content

The Blues are the target of New York-based investment firm MSP Capital who are reportedly looking to pump £105m into the club in exchange for an option to convert that investment into a 25% stake in the club.


Reader Comments (32)

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Michael Kenrick
1 Posted 09/06/2023 at 09:40:02
It was very nice of Forbes to expand their list of ‘Top Soccer Teams' from 20 to 30 this year – otherwise our continuing demise under the current mob of our highly respected ‘corporate officers' would have slid well below the radar.

As if this wasn't bad enough, it's even more galling that Everton have now slipped behind not one but three MLS teams! With six making it into the Forbes Top 30!!!

I think I'm going to have to lie down in a dark corner somewhere…

Chris Williams
2 Posted 09/06/2023 at 10:25:35
In the real world, a business is worth what someone is prepared to pay for it. From what we’ve seen, so far, and if true, the deal currently being discussed probably falls a fair way below even this reduced valuation.

Shove over Michael, I might join you!

Paul Hewitt
3 Posted 09/06/2023 at 10:35:28
I never pay attention to any of this crap.
Michael Kenrick
4 Posted 09/06/2023 at 13:21:45
I think I've heard that said, Chris.

If there was that much value in us despite all we have been through, you'd think there'd be more potential investors out there looking to cash in at a price that undervalues us, perhaps by a significant margin.

Maybe this is what has already happened with rumours of there being as many as four entities interested in investing at some stage, now narrowed down to just the one.

Chris Williams
5 Posted 09/06/2023 at 14:16:49
I think there are too many imponderables around the club currently, Michael. Regulatory issues with the Premier League, and now issues with the Treasury, were told. Each serious enough in isolation. Even the accounts say we are at “existential” risk.

No potential investor is going to ignore that, and Moshiri's need for funds to complete the stadium might be a factor too.

These are bound to be a factor in the valuation that is part of the exclusive discussions currently taking place, although much of what we believe those details to be, are really so much speculation.

Pat Kelly
6 Posted 09/06/2023 at 14:41:54
Is it any surprise when Davies is reportedly being offered a new contract?
Paul Kossoff
7 Posted 09/06/2023 at 15:11:58
Don't worry — our value will increase because our squad is stronger. Davis, Coleman and our new back up keeper Andy Lonergan (39) have been given new contracts.

Townsend has gone with his seventy grand a week for the last year safely in his bank. Now we only have to wait for our new backup striker to come in in case Calvert-Lewin gets injured. Good times ahead.

Will Mabon
9 Posted 09/06/2023 at 15:48:48
What's the big revenue drop?
Kieran Kinsella
10 Posted 09/06/2023 at 15:51:10

Probably USM paying over the odds to sponsor Finch Farm, the team showers, the club letter box and garden gnomes.

Will Mabon
11 Posted 09/06/2023 at 15:56:11
Kieran :-)

I kind of lazily asked that without reference to information, but I wonder how we can now be listed below Leicester, based purely on a measure of revenue, ie, income to the club?

Raymond Fox
12 Posted 09/06/2023 at 16:10:16
We were 10th in the Premier League for home attendance at 40k. We needed to move or we will fall further down the pecking order.

West Ham averaged 62k! – that's a lot of extra cash coming in compared to us. I don't suppose our squad has gone up in value either after our last season.

Whatever, it's only their opinion in any case.

Ajay Gopal
13 Posted 09/06/2023 at 16:21:27
With the final stadium cost reported to be about £760 million, once it is completed, will that not get added to Everton's valuation? I think it should and then that would raise Everton's value beyond £1.3 billion.

It still pales in comparison to Man Utd with the Glazers said to be demanding close to £6 billion. In that sense, Doucouré's goal 2 weeks ago is literally invaluable.

Brian Williams
14 Posted 09/06/2023 at 16:21:35
I read somewhere, from several sources, that Everton could play in an empty stadium every other week and it wouldn't make a noticeable difference overall as the revenue from matchday is so small comapred to tv and advertising income.
Will Mabon
15 Posted 09/06/2023 at 17:21:24

Considering season tickets and the range of single ticket prices, and assuming capacity crowd for the 19 league games only, it's probably around £30 million for the season. Tickets only.

Not the biggest revenue element nowadays and costs have to come off, but it's definitely cash we can use. Particularly now.

John Chambers
16 Posted 09/06/2023 at 18:10:15
Will in 2021-22 our gate receipts were £15.6M, so about half your estimate and less than 8% of our overall revenue. That reflects our cheap admission at an average of about £20 per head (including all concessions) and poor corporate facilities. Liverpool had match day revenue of £86M, about 15% of their revenue, and Tottenham £106M, about 20% of their revenue.

The club's expectations will be to significantly improve our current levels when we move to the new Everton Stadium at Bramley-Moore Dock through increased ticket prices (at the moment, I think our most expensive “regular” season ticket is cheaper than Liverpool's cheapest), increased capacity by 30%, and a massively increased corporate capacity (albeit that will be massively influenced by our ability to stay in the Premier League).
Barry Rathbone
17 Posted 09/06/2023 at 18:23:41
"Give me the night or give me Blucher" the Duke of Wellington, Waterloo.

Our version "Give me a sheikh or give me snookers"

Boardroom and new ground changes don't seem capable of touching the sides.

Michael Kenrick
18 Posted 09/06/2023 at 19:23:06
Brian @14, Will @15:

I found a more detailed valuation breakdown at the Forbes website (with my Sterling estimates calculated at $1.25 = £1.00):

Broadcasting: $428M (£342M)
Commercial: $155M (£124M)
Brand: $104M (£83M)
Matchday: $57M (£46M)

The comparable numbers for Leicester City are: $494M, $116M, $101M, $70M.

And for Aston Villa: $468M, $126M, $101M, $61M.

Very similar really, kinda hard to make much of any differences. Matchday is the smallest slice of the cake for everyone.

Pete Neilson
19 Posted 09/06/2023 at 19:47:26
Forbes valued Chelsea at £2.3bn prior to their takeover, and today at £2.5bn. Todd Boehly and Clearlake Capital paid £4.25bn. Forbes is just an estimate, and not necessarily an accurate one.
Danny O’Neill
20 Posted 09/06/2023 at 19:53:33
Forget attendance and I know most revenue comes from investment and television, but our matchday revenue is midtable at best. Just shy of 600K. Compare that to the red cousins at 3.1M.

We are midtable, they are just behind Arsenal and Manchester United.

I keep saying it, when I buy a ticket for a match at Goodison, I spend on average around £250 all in (ticket, travel, drinks etc).

The club get £49 of that out me. Maybe an extra £5 if I manage to get served at half time, which isn't often.

Season tickets (they've still got me on the waiting list - I'm a member). Tottenham's most expensive is over £2000. In a 60,000 capacity stadium.

Ours is £625 in a 40,000 capacity stadium. Do the maths.

Its an emotive subject and the club needs to keep connected with it's lifeblood as we remain a predominantly local fan base from a city that has its challenges even though it is has moved on no end. That is not meant to offend, I hope you know what I mean.

But with the move to BMD, the club needs to work out ways of ensuring they generate income in and around Bramley Moore that generates income for the club.

I feel for those pubs and eateries around Goodison that have served me since I can remember going to Goodison Park. But we have to make the most of this opportunity. As does our city.

Will Mabon
21 Posted 09/06/2023 at 21:23:45
John @ 16 and Michael @ 18, thanks. Edit - Danny too.

My mental back-of-a-fag-packet figure emerged by using £40 as a ticket price, understanding that this is above what a season ticket (and other concessions) average to, but lower than a standard adult ticket price: a rough guess.

It slips about into the middle between 15.6 and £46M. We'd need to eliminate the apples and oranges thing by aligning all match day income, number of games, true crowds, costs, so gross/net etc.

Small as it may be as whatever proportion, it's significant to us where we are.

No-one wants to pay more, and it's rightly sensitive, but we are rather cheap by some measures. I hope a reflective balance is achieved at Bramley-Moore, from realistic standard tickets to modern corporate rates.

Dupont Koo
22 Posted 09/06/2023 at 00:17:30
Don't hit yourself too hard, Michael!

A lot of the MLS teams have their stadium counted towards their assets in this Forbes ranking, but unlike your side of the channel, a lot of those billionaire owners managed to handcuff local municipal, city or state (sometimes, a combination of all 3 levels of) governments to chip in public tax money to build the stadium. Those team would subsequently rent their stadium from the governments for the next 30 to 40 years.

So, just another cultural difference between both sides of the channel!

Eric Myles
23 Posted 10/06/2023 at 03:06:40
AJ #13,

Essentially you're right although the valuation of the completed stadium may not be the cost to build it, it could be less or more. And add onto that valuation the pre-booking of event-generating revenue then, if Moshiri was looking to sell, he should well recoup his outlay.

Matt Traynor
24 Posted 10/06/2023 at 07:18:38
My perception is that in recent years Moshiri has tried to overhaul the commercial side, which prior to his arrival was piss poor. The stories around this involved poaching some of the Mordor executives, with a view to getting alternative events.

This was part of the original commercial strategy of King's Waterfront, which colloquially suggested the capacity and capability of "hosting a speedway meet in the morning, a football match in the afternoon, and a Tina Turner concert in the evening". Putting aside the semantics, and sadly at least one of those events won't happen, I believe non-footballing event days remain very much part of the strategy going forward.

As an added bonus, some of that will be directly abstracting from Mordor's secondary revenue.

Danny O’Neill
25 Posted 10/06/2023 at 08:27:50
Very pertinent point, Matt.

Concerts and other events. Revenue generation.

Look at Tottenham. Hosting NFL. Apparently building a racing cart track under the stadium.

Manchester United have been doing it for years, hosting Rugby League cup finals.

Some traditionalists may not be comfortable with it, but it is how clubs generate additional income from their stadiums.

For me, I just hope I will be able to get served at half-time.

Pete Neilson
26 Posted 10/06/2023 at 11:40:24
I guess the Premier Legue will be delighted to see Newcastle's valuation rocket as they wave through a sponsorship deal that's little more than a cash injection from their owner:

Necastle won't face scrutiny over new £25M Saudi sponsorship deal

So blatant and so confident as they are protected from any sanctions.

Raymond Fox
27 Posted 10/06/2023 at 12:10:49
What about squad valuation, the players have been bought in most cases and can be sold for x amounts. If you're valuing a club at a specific time, the value of the players must come into the equation.

Also, there's too much uncertainty around the club at the moment, you would need to buy at a very good price before you would put any money into us now.

Get over this uncertainty and the value will take a leap.

Stu Darlington
28 Posted 10/06/2023 at 12:32:47
You're right, Raymond, a major factor in business valuation is uncertainty.

Can anyone tell me where there is more uncertainty attached to a Premier League club at the moment?

Valuation of a football club is much more than totalling up the value of its assets.

Getting Danny served at halftime would probably push up the value by a tenner or so!!

Matt Traynor
29 Posted 11/06/2023 at 03:38:51
Pete #26 – do not underestimate the value of trade between us and the Kingdom of Saudi Arabia. Read the official figures and then add a lot. Most of the former ICI plants are now owned by SABIC – the world's 4th largest petrochemical firm. I conservatively estimate 200k plus UK jobs are involved.

Of course, the pearl-clutching in Golf amused me. DP World? Who are they then?

Habib Erkan Jr
30 Posted 11/06/2023 at 20:16:05
I live in Texas and am at a loss as to how to explain paying four times what I did at Goodison to watch a side composed of players who would struggle to make a championship team.

Yes, the stadium is gorgeous and, though Austin FC sucks this year, the stands are still filled with a festival atmosphere. Thus is the mastery of the lords of MLS. They cater to a fanbase that values perception over substance.

Frankly when I saw the Verde were the 30th most valuable team in football, it scared the shit out of me. MLS has criminally created a professional football monopoly (the elimination of relegation and promotion is just half the story) and these bastards have their eyes on Europe.

Greg Nelli
31 Posted 12/06/2023 at 02:35:12
Well the positive is if the value of the club is lower the prospective buyer might be able to use the savings on purchase to invest into the club.

Again, taking over with so much going wrong might result in a relatively fast improvement when competency comes into the club.
buy low sell high.

Jerome Shields
33 Posted 16/06/2023 at 08:16:47
Eric #23,

Moshiri, even with the additional monies he has put on top of the original discounted share purchase, will always end up quids in if he sells the club.

He will be staying because there is still a lot of money to be made out of his Everton venture. What is happening currently is in that context. He is quite happy to cut and take risks on the football side. Two seasons with threatened relegation are proof of that.

On the development side, he is more involved because that is were the real money is to be made. I don't think he will be paying much thought to the Forbes valuation.

Barrett-Baxendade, Inglis (probably to appease the independent comission) and Sharpe were always expendable. Kenwright as a substantial shareholder is in a different place but has lost his usefulness dealing with the authorities.

Jerome Shields
34 Posted 16/06/2023 at 08:54:03
Matt #29,

'DP World is an Emirati multinational logistics company based in Dubai, United Arab Emirates. It specialises in cargo logistics, port terminal operations, maritime services and free trade zones.

Formed in 2005 by the merger of Dubai Ports Authority and Dubai Ports International, DP World handles 70 million containers that are brought in by around 70,000 vessels annually.’

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