Everton’s owner, Farhad Moshiri, has agreed to convert his £451 million loan to the club into shares, a decision that comes as a result of new Premier League regulations regarding shareholder loans. These rules, which will be implemented by January 11, 2025, require any loans provided by shareholders to be subjected to a fair market value test. The new policy, designed to prevent clubs from artificially inflating their financial situation, was passed last week despite opposition from Manchester City. The move is crucial for Everton as it helps the club comply with the new regulations and potentially stabilizes their financial position.
Moshiri’s willingness to convert the loan into shares is seen as a positive step towards addressing the club’s ongoing financial troubles. The £451 million loan, which was originally intended to help finance the club’s operations, will be waived if the sale of the club to the Friedkin Group is completed before the deadline. The Friedkin Group, which owns AS Roma, is currently in the process of acquiring Everton, but the deal is still subject to Premier League approval. If the takeover goes through, it would signify the end of Moshiri’s often controversial ownership and bring hope for a fresh start for the club.
However, this move raises concerns about Everton’s compliance with Profitability and Sustainability (PSR) rules. The club has already faced financial challenges, including a points deduction for breaching PSR rules last season, and is under investigation for potential further breaches. To address these concerns, Everton is required to submit their financial accounts early.
Despite these off-field challenges, Everton’s manager, Sean Dyche, has managed to keep the club out of the relegation zone, achieving safety in the previous season. Currently sitting in 15th place in the Premier League, the Toffees are on a four-game winless streak but will aim to turn things around when they face Manchester United this weekend.
