AliousAccording to finance expert Stefan Borson, Everton will be able to utilize the Premier League broadcasting revenue that they are set to receive next month to sustain their operations until the end of July.
Borson, who spoke exclusively to Football Insider, believes that the Merseyside club has thus far overcome the “big” hurdles they faced as they attempt to resolve their crippling financial situation, despite the collapse of the proposed £500 million takeover deal by 777 Partners.
The failed takeover bid, which was agreed upon last September for Farhad Moshiri’s 94.1 percent stake at Goodison Park, has left doubts surrounding Everton’s future.
The club has accumulated massive debts, including up to £200 million in loans provided by 777 Partners during the takeover process to cover operating costs and stadium construction fees.
Last month, Football Insider revealed that Everton would need to sell at least one of their “big” stars before submitting their accounts at the end of June to help balance the books.
Despite the urgency for Everton’s chiefs to resolve the financial situation, Borson suggested that third parties with “significant interests” in the club’s survival could provide the necessary funds in the weeks ahead.
“It’s unclear how the cash-flow has worked over May, June and looking forward,” Borson told Football Insider. “At the end of every month, you have a bit of a cash-crunch when you have to pay the wages. You know there is a big need for cash then.”
Borson speculated that Everton must have received enough cash from an unknown source to pay their bills in May, as they did not exhibit any signs of a crisis situation.
He believes that the upcoming Premier League payment in June will help the club get through that month, while the subsequent payment in July for the next season will sustain them until the end of that month.
However, Borson acknowledged that at some point, Everton would require additional external third-party cash, as Moshiri is unlikely to fund them further.
He stated, “But it may be that those people who have got significant interests in the survival of Everton will be prepared to fund them in the period after the receipt of the Premier League money.”
While the situation remains urgent, Borson concluded that Everton seems to have overcome the “big, immediate hurdles” they faced.
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