'Very important' - Finance Expert issues Everton loan admission amid recent APTs change

Everton are the only Premier League club to have explicitly mentioned shareholder loans as equity in their accounts, claims Stefan Borson.

The finance expert states that it is important for the Toffees to argue that shareholder loans are taken at zero interest with no fixed repayment date.

This comes after clubs approved changes to the League’s Associated Party Transaction (APT) rules on Friday, 22 November. [Premier League official website]

Via X, Borson wrote: “Agreed. Very important – I think only Everton explicitly have their shareholder loan as equity in their accounts. But a key point if the accounts conflict with the PL’s view.”

Everton surely will have factored all of this into their calculations

The Toffees, aware of their unique accounting practices regarding shareholder loans, likely considered their position carefully before the Premier League’s vote on APT rule changes.

With these loans listed as equity in their accounts, Everton have a strong case to argue that such financial arrangements should not be subject to the new APT regulations, which might otherwise impose market rate interests or different interpretations.

This will help protect their financial structure, especially given the historical context where these loans were provided with no interest and no fixed repayment terms.

The club hierarchy would have anticipated potential conflicts between their accounting treatment and the Premier League’s perspective, ensuring their voting aligned with safeguarding the club’s financial stability.

Fans should not be overly concerned, as the club’s proactive approach in how they report and manage their finances reflects a strategic foresight, aiming to maintain compliance while leveraging their financial model to avoid adverse effects from regulatory changes.

The coming months and ownership change will perhaps offer more clarity as to how things will move forward.

In other Everton news, the Toffees have now been named contenders to sign an attacker they wanted to secure in the summer.

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