Everton have dodged a potential financial disaster by parting ways with what was once a key ally in the commercial department.
The Toffees are in a financially precarious situation at present, with ownerFarhad Moshiri having failed to sell the club to 777 Partners amid doubts about their ability to finance the club going forward.
The British-Iranian billionaire is now considering alternative options, among them Crystal Palace co-owner John Textor and the investment group MSP Sports Capital.
MSP already have an option to take a controlling stake in the club as a condition of a previous financing arrangement with Moshiri.
That £160m agreement came at a time when Everton were desperate for funds for their new stadium at Bramley Moore Dock.
Their financial situation was damaged prior to that when the benefactor Alisher Usmanov was forced to cancel all of his sponsorship deals with the club because of his links to the Russian state.
It was shortly after this that Everton exercised their option to cancel their deal with online car retailer Cazoo, who had been their front-of-shirt sponsor since 2020.
And in light of recent events, that appears to have been a masterstroke from the club’s commercial department.
Cazoo collapse: Everton escape potential cash flow disaster
As has been well documented in recent days, Cazoo has gone into administration.
Many commentators have suggested that the company’s gamble on going all in on sports sponsorship is one of the main reasons for its demise.
A report from The Sponsor estimates that the company’s sponsorship portfolio was worth a total of £36.5m, with Everton accounting for £10m-a-year of that figure.
Had the collapse happened before Everton switched to online betting platform Stake as their principal partner, the club could have been majorly out of pocket.
What’s more, the deal with Stake is believed to be worth a small uptick on the previous arrangement.
Football finance analysis: Everton’s commercial income
Everton’s commercial revenue fell dramatically from £76m to £47m when they released their 2022-23 accounts, reflecting the enforced departure of Usmanov’s sponsorship deals with the club.
Sponsorship stabilised around that level for two more seasons before falling again to £39m in their most recent set of accounts.
While the Usmanov factor is undeniably huge, so too is Everton’s perfornance on the pitch, which has made them a less attractive sponsorship prospect.
Their issues with the Premier League and their Profit and Sustainability Rules have not helped either.
They will hope that new commercial deals with kit manufacturer Castore and a new seven-figure sleeve sponsorship with KICK will go some way towards plugging the gap