Martyn Ziegler: Everton now face new PSR blow over Moshiri money after Man City news today

Everton are now considered to have an “unfair advantage” over other teams in the Premier League according to the ruling in Manchester City’s legal dispute, Martyn Ziegler reports.

The Times journalist wrote for the paper’s website on 7 October that following the emergence of the panel’s verdict in favour of the champions over Associated Party Transactions [ATPs] that the Toffees now face a new PSR blow.

Everton top the table for shareholder loans with £451million, thanks to the money which Farhad Moshiri has put into the club and is not expected to get back when sells to The Friedkin Group [Sky Sports, 23 September].

Previously that money was considered interest-free but following the ruling in the City case it could now have commercial loan interest rates applied, impacting the club’s PSR situation.

The Toffees were hit by a pair of points deductions last season for PSR breaches, and still have a third hanging over them due to an ongoing dispute on stadium interest payments.

Everton have new headache ahead of Dan Friedkin takeover

It is some irony that Everton actually backed Manchester City against the Premier League in this case but could be the worst affected by one of the outcomes.

Arsenal and Brighton are also in danger of taking a heavy hit to their PSR calculations but are surely in a healthier starting position.

It is unclear whether The Friedkin Group’s expected takeover would impact the scenario, as the vast majority of the debt to Moshiri is set to be written off.

There isn’t believed to be much PSR at Goodison Park as it is [Kieran Maguire, 26 September], but applying commercial interest rates to well over £400m in loans that have been sitting on the balance sheet for years would surely have a major negative impact.

It is also not clear how quickly the recalculation of clubs’ positions could be done, so it may still be possible for money to be spent in January with the “wriggle room” available, as Friedkin may have rapidly returned to agree a takeover in order to strengthen in the winter market [Matt Slater, 27 September].

The off-pitch picture has vastly improved in recent weeks since the takeover deal was announced on 23 September, but TFG need to get their bid over the line to improve the commercial picture and the PSR situation, in addition to the financial safety net they have already provided [Liverpool Echo, 1 October].

It would seem hugely unfair if there were retroactive sanctions as a result of the latest development but if one club has already fallen foul of changing regulations and different interpretations of financial moves it is Everton.

In other Everton news, a Sky Sports pundit admits he is “absolutely in shock” at what he has seen at Goodison Park.

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