Despite £1bn debt, Everton remains a promising buy.

As Farhad Moshiri weighs ending his deal with 777 Partners, Telegraph Sport examines the club’s staggering expenses.

The potential sale of Everton, a football club, comes with a caution for anyone interested in buying it. Despite Farhad Moshiri considering backing out of his agreement with 777 Partners, insiders suggest there are still plenty of people interested in taking over. As experts analyze the hefty bills involved, they believe that the new owner might eventually strike a great deal for themselves, despite initial challenges.

Determining Everton’s value is tricky, with estimates ranging from £1 million to £500 million. Moshiri’s deal with 777 Partners was reportedly valued at over £500 million, but with substantial debt to clear, he might not have profited much from his 94.1% stake. The debt includes amounts owed to various parties, totaling over £1 billion, complicating the financial picture significantly.

Kieran Maguire, a football finance expert, suggests that Moshiri may have been advised to walk away with minimal returns, considering the apparent worthlessness of the shares due to the overwhelming debt. Any potential new investor would face a complex situation, especially with 777 Partners seeking to recoup their investments through legal means.

MSP Sports Capital, another potential buyer, holds significant leverage over Everton due to their existing financial arrangements. While they have options to acquire control, they may hold off due to other complicating factors, such as existing loans and legal issues.

Experts express skepticism about the club’s ability to avoid financial trouble, especially if the 777 deal falls through. Despite assurances from the club, doubts linger about Moshiri’s willingness to inject more personal funds to sustain Everton.

However, there’s optimism about the club’s future, especially with a new stadium on the horizon. Drawing parallels with Tottenham Hotspur’s successful leveraging of their stadium for revenue, there’s hope that Everton’s fortunes could turn around in the long run. With a better stadium and potential for increased revenue streams, there’s the possibility of a lucrative deal for a future owner, albeit at the expense of current lenders.

In essence, while Everton’s current financial situation is daunting, there’s the potential for a positive turnaround, especially for a buyer willing to navigate the challenges and invest for the long term.