Finance Expert claims threat of further charge for Everton still lingers in PSR saga

Everton still appear to be facing the daunting prospect of further punishment amid complications with costs surrounding the Bramley-Moore Dock Stadium, according to Kieran Maguire.

Speaking on The Price of Football [4 July, 10m 30s], the finance expert discussed the latest goings-on at Everton and what the recent accounting deadline of 30 June meant for the club and PSR.

When co-host Kevin Day described Everton and the Premier League as still being “uncomfortable bedfellows”, even after moving past what those at Goodison will hope is the heat of their battle, Maguire explained the current situation surrounding issues with the club’s stadium costs.

“When the commission reached its verdict on Everton’s submission of the 2022-23 accounts, which resulted in a points deduction, it did say that there was an outstanding issue which would have to be dealt with,” Maguire explained.

“There has been no evidence of any settlement between the Premier League and Everton since then, so is there going to be another commission held? Will there be more charges against the club?

“When you look at the smallprint of Everton’s accounts submission, they changed the way they treat interest, and PSR is based on profit – that’s all of your costs, including borrowing costs.

“Under the accounting rules in the UK, if you borrow money to fund a construction project, you can either treat it as normal interest or alternatively add it to the value of the property.

“Everton took the second option – but why can’t they do so when Chelsea are selling properties to themselves to circumvent PSR? It offers no sporting advantage.”

Everton at loggerheads with Premier League over stadium costs

The ongoing disagreement between Everton and the Premier League is down to the latter being apprehensive over the idea of the Toffees adding the interest on the Bramley-Moore Dock Stadium construction to its own value.

In a move estimated to bring the club’s costs down by £25million, it is entirely understandable why Everton are looking to take that approach.

When balanced with Chelsea’s activity away from the sporting realm to tackle PSR concerns, the Merseysiders have a strong point.

Stefan Borson reassured fans [23 June] that there would be no risk of insolvency at the club, despite failing the last PSR limit which resulted in a total of eight points deducted last season – fortunately not enough to prevent Premier League survival.

A new era at Everton under the helm of Dan Friedkin could, according to The Esk [1 July], bring the club back to an authoritative position amongst the Premier League teams as the club undergoes its major, long-awaited transition period and looks on track to complete the stadium site in time for August 2025.

In other Everton news, the club are free to complete the signing of Wilfred Ndidi.

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