Despite a deterioration on the field during the past two years, Everton’s worth has climbed by 14%.
Sportico estimates that the Blues are worth $600 million (£485 million) in the present market, an increase of more than £60 million from their estimated value in 2021. Everton is now ranked eighth in the Premier League, having been passed by West Ham United, whose value increased by 33% within the same time period to $665m (£535m).
Those are the claims made by analysts at the US sports business website Sportico, who on Tuesday released its annual Premier League valuations list. The list was built using equity research and interviews with various influential people involved in sports investment.
When it comes to valuing UK football clubs and sports teams in general, the parameters that are generally used to value businesses are sometimes not used as rigorously. It has been based on the strength of recent agreements for some time, the notion that valuations must rise given the size of the broadcast agreements reached and the growth of commercial revenues, and the belief held by many investors that there is latent value in Premier League clubs that will be released as they continue to find new ways to interact with their international fan bases.
Speaking to Bloomberg last year
Gerry Cardinale, who owns 11 percent of Liverpool’s owners Fenway Sports Group and owns AC Milan through his RedBird Capital Partners company, stated in an interview with Bloomberg last year: “The valuation conversation is tricky. There isn’t a lot of rigour in it. It has certain elements of LIFO (last in, first out), in that you look at the most recent trade and add a markup to it. The fact that people have grown accustomed to everything in sports continually moving up is what makes it seductive and deceiving. That is impossible and goes against Darwinian theory. For the foreseeable future, everything will continue to rise, though the slope of that curve may shift.
“The valuations signal that there is something very premium here, there is a value associated with scarcity, and there is something very special in everything that is happening in the media and the convergence of (sports, media, entertainment, and technology) streams where this is some of the best content that you can access,” says the report.
On a hectic Tuesday for Everton, news broke in the Guardian that the club’s owner, Farhad Moshiri, had put it up for sale and hired Deloitte to help with the transaction. The article states that £500m was the asking price.
However, following the publication of the article, Moshiri told the ECHO that the club was not up for sale. Repeating his remarks to the Everton Fan Advisory Board (FAB) during their meeting. Last week before the weekend’s loss at West Ham United, which marked the end of Frank Lampard’s one-year tenure at Goodison Park.West ham united
Moshiri told the FAB:
To the FAB, Moshiri stated: “The club is not up for sale. But I have been in contact with top-tier investors to fill a stadium funding shortfall. I can do it on my own, but the reason. I want to is to attract renowned sports investors to Everton. In order to meet some of the supporters’ demands for improvement: more talent. The completion of a deal is imminent. The club isn’t being sold at all. Rather, greater competence in terms of international sponsorship and business growth is being brought in. Many specialised sport investors have this pool of knowledge.”
Originally estimated to cost around £500 million, the stadium project may end up costing as much as £760 million. When all expenses from planning to completion and any ancillary developments are taken into account. According to remarks Moshiri made in an unscheduled appearance on talkSPORT earlier this month.
Everton’s current Sportico valuation may be appropriate given its size and global appeal. But the club’s main worry right now! Is whether or not it will be able to compete in the Premier League next season. They are currently in last place in their division. Without a manager, and have missed out on targets that would have helped their survival bid.
Relegation would be a significant financial problem for Everton. A team that has consistently competed in the top division of English football since 1954. Because of the revenue loss that would result from it as well as the burdensome. Contracts and liabilities that would be added to the payroll. The value of the club would likewise be considerably impacted, possibly more than the Sportico valuation at the moment.
Through discussion with the ECHO, Moshiri has affirmed his position, but there are significant risks involved.