Everton have received a major boost to their position under Profit and Sustainability Rules thanks to a domino effect that started with former benefactor Alisher Usmanov’s exit.
The Russian billionaire oligarch was forced to cut ties with Everton in 2022, with whom he had signed a number of lucrative sponsorship deals with a potential value of up to £300m over 20 years.
Among those were the naming rights for the club’s Finch Farm complex, a women’s team front-of-shirt deal, and a first-refusal deal for the naming rights for their new stadium at Bramley Moore Dock.
Everton have struggled with Profit and Sustainability, or PSR (formerly financial fair play, or FFP), ever since and were hit with two separate points deductions in 2023-24.
They also run the risk of encountering cash flow issues if they fail to sell players this summer, at least until AS Roma owner Dan Friedkin completes his takeover from Farhad Moshiri.
But the latest developments in the commercial department at the Merseyside club show that the club is moving on from Usmanov’s investments.
Alisher Usmanov exit paved way for new Everton stadium deals
Usmanov had the option to secure a naming rights deal for the 52,800-seater stadium which is into the final stages of construction.
And while Everton are yet to announce a naming rights deal in the Uzbek-born investor’s absence, they are now beginning to flesh out their commercial strategy for the new ground.
Had it not been for his enforced withdrawal due to UK sanctions regarding his links to the Russian state, Everton may not have moved on to other partners with whom they are now striking deals.
Everton have announced that as part of their deal with kit deal with Castore, the sportswear firm will become the first “Founding Partner” of the new arena.
This will give the company enhanced media rights and commercial access when the stadium opens in 2025.
According to The Telegraph, the package is worth a reported £20m per season and has been described only as a multi-year deal, which means it will be worth £40m in total to Everton at the very least.
That’s all cash that will go towards easing the Toffees’ PSR worries ahead of the 30th June assessment deadline.
HPE Aruba Networking, a subsidiary of the Hewart Packard Group, have also been named as the connectivity partner for the stadium.
The deal, for which no value has been reported, will see the company oversee the stadium’s Wi-Fi, which will allow supporters to share matchday footage and engage with real-time promotions from the club.
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Regardless of whether Friedkin takes over Everton this summer, the club are in a somewhat precarious position when it comes to financial fair play.
The deals with Castore and HPE Aruba Networking will help, but that income is unlikely to be factored into their PSR calculation until 2024-25.
Having been put to the sword by Premier League regulators over the last 12 months, the Goodison Park faithful feared another fine or points deduction could be in the post for the 2023-24 assessment window.
However, the world-renowned football finance blogger Swiss Ramble suggests that they are likely above water in terms of the £105m allowable losses threshold as we approach the formal end of the campaign.
That means they will not be under pressure to sell players at below market value – not in the short-term at least.