The 52,888-seat stadium on the banks of the River Mersey will change both Everton’s financial situation and
Liverpool’s skyline.
The new stadium’s predicted boost in matchday revenue will be a welcome comfort for a team that has struggled with
the Premier League’s Profit and Sustainability Rules (PSR). The Toffees and PSR’s enforcers are still at odds, though.
Another hearing concerning Everton’s capitalization of interest payments on loans used to finance the building of the
Bramley Moore Dock stadium is scheduled for an undisclosed date.
More points could be deducted if the tribunal rejects the club’s judgment that those interest payments are exempt
from its PSR calculation.
In fact, Everton may face multiple sporting sanctions because the interest payments issue impacts multiple seasons
and, thus, multiple PSR assessment windows.
Given that infrastructure investment is and has historically been PSR-deductible, the prevailing sentiment in the
football financing industry is that it would be incredibly unjust.
As industry analyst and author of Price of Football Kieran Maguire has stated to TBR Football, the question is: Why
should Everton be punished for making investments in their future?
However, the Premier League is not interested in debating the semantic meaning of the laws, as Everton has learned
to their detriment.
Instead, it wants to demonstrate to the government that it can successfully self-regulate, especially since an
independent regulator for English football is about to be installed.
The club has been looking into the idea of naming rights for Bramley Moore Dock as a way to alleviate their financial
troubles for a while.
According to CEO Colin Chong, Everton hopes to make over £100 million from a naming rights contract that will last
for at least ten years, if not longer.
An intriguing element now indicates that a group with a connection to Fenway Sports Group (FSG), the owners of
Liverpool, may, at least in principle, have some control over the proposed branding agreement.
FSG investors have stake in Everton naming rights agency
With complete ownership of Liverpool and the Boston Red Sox and Pittsburgh Penguins of Major League Baseball,
FSG is one of the most lucrative sports conglomerates in the world.
Additionally, they own minority stakes and lesser franchises in a range of sports and entertainment companies.
Although the corporate structure has dozens of investors overall, John Henry continues to be the network’s largest
individual shareholder.
Among them is Arctos, the sports-focused private equity fund that, in 2020, acquired an undisclosed minority
ownership, estimated to be around 5%.
One of Arctos’s businesses is the branding agency Elevate, who just so happen to be the firm that Everton appointed
to search for a naming rights partner several years ago.
Elevate’s ownership group also includes 49ers Enterprises, the investment arm of the San Francisco 49ers, who own
Leeds United.
Elevate have also helped Everton appoint a number of ‘founding partners’ for Bramley Moore Dock, including
Castore, Christopher Ward, and Aramark
And while there is no suggestion that Arctos have had any direct sway on proceedings, their indirect involvement is
emblematic of how small the world of sports business can be.
Liverpool and Everton set to compete for lucrative stadium events
Everton will be trying to improve their commercial standing in addition to trying to close the huge gap with their
rivals across the city on the field.
Since the phased rebuilding of Anfield, Liverpool’s yearly commercial revenue, which was £272 million at the last
count, has increased.
This has made it possible for them to transform a stadium that was previously used exclusively for football into one
that can now accommodate concerts and other events.
They have played host to celebrities like Taylor Swift, whose three appearances in London are thought to have
brought in almost £10 million for the team. Everton has made it clear that they want to compete with Liverpool’s
stadium as the city’s preferred location for non-football sporting events and concerts.
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