“Why Everton’s £400m Price Tag Might Be Overblown”
Everton’s valuation at around £400 million is likely inflated, and the club should use Newcastle United as a benchmark for a potential takeover, according to finance expert Dan Plumley. Kieran Maguire mentioned on his Price of Football podcast (23 July) that an offer from “somebody in London” was made for £400 million, but questioned this figure given Everton’s external debt of around £600 million.
Plumley, in a discussion with Goodison News, suggested that even with the potential revenue from the new Bramley-Moore Dock stadium, Everton’s value should be closer to £300 million, similar to the price Newcastle United was sold for when the Saudi Arabian Public Investment Fund purchased it in October 2021. He added that while £400 million might be what Everton or owner Farhad Moshiri would want, it’s not a realistic valuation considering the club’s debt and the uncertainty around the new stadium’s financial impact.
Plumley believes Moshiri’s desired valuation of £400-500 million is inflated based on standard valuation metrics and that a more realistic figure is around £300 million. He also noted that while Moshiri and Everton might believe their club is worth more, prospective buyers are likely to aim for a lower price, especially given the substantial debt attached to the club. Moshiri needs to be realistic about the price, as investors may be waiting for a better deal.
Additionally, Plumley emphasized the need for clarity regarding Everton’s potential takeover, as fans deserve to know where the situation stands, especially since news about the club’s future has been sparse.