Finance Expert: Newcastle benchmark for Everton takeover amid £400m bid news

Everton being valued in the £400million mark is probably an inflated figure and Newcastle United should be their benchmark in trying to secure a takeover, Dan Plumley has said.

Kieran Maguire stated on his Price of Football podcast (23 July) that there was an offer from “somebody in London” for £400m but added the figures don’t add up for a club with around £600m of external debt.

Finance expert Plumley, speaking to Goodison News, thinks that even accounting for the potential revenue the new stadium at Bramley-Moore Dock Everton should be valued more around the £300m mark, which is what Newcastle went for when they were sold to Saudi Arabia’s Public Investment Fund in October 2021.

“It’s (£400million) probably not enough in Everton’s eyes or certainly Moshiri’s eyes,” he said,

“The caveat to that is I’m not so sure Everton is a £400million club at the minute, I know there’s the new stadium in there and the revenue generation possibilities but there’s a lot of debt you’ve still got to take on attached to that stadium and it’s not quite there yet.

“So, I think the £400-500million value Moshiri was looking for I think was kind of inflated if you look at some of the metrics we use to measure the valuation, I’d probably put it more at the £300million ballpark, similar to the Newcastle deal a few years ago if you’re looking for benchmarks.

“It’s always subjective with football valuations but I think that’s realistically closer to that scale for Everton what you’d be looking at.

“If there is a £400m bid there or has been I think we’re saying it’s not enough in the sense that Everton and Moshiri want more and think it’s valued at more but I think it’s probably more realistically you’re looking a bit below that for a realistic valuation.”

Farhad Moshiri has to be realistic over Everton price

There are, obviously, many issues involved with a potential takeover at Everton, not least the fact anyone wanting to purchase the club will want to pay off the external debts.

Then there’s the fact that Moshiri will want to make some money back on his own investment, but the chances to make big bucks seem quite slim considering how much debt needs to be paid off.

So, he has to be realistic about the price he’s going to get and you sense that potential investors are just waiting to see if they can get an even better deal than they may do now.

Either way, there needs to be some clarity in the near future because at the moment things seem pretty quiet on the news front in terms of concrete details and supporters will rightly want clarity on where things stand.

In other Everton news, the Toffees want to sign a USA international who’s keen on the switch to Goodison Park.

For more Everton news, follow us on Facebook or join our brand new WhatsApp Channel for instant updates to be sent straight to your phone.

The post Finance Expert: Newcastle benchmark for Everton takeover amid £400m bid news appeared first on Goodison News.