Everton become latest Premier League side to sell stake in women’s side to raise funds

National World - LocalTV

Everton’s challenging summer has taken another twist with the sale of their women’s team to a parent company — a move expected to generate a paper profit worth tens of millions of pounds and provide breathing space under the Premier League’s Profitability and Sustainability Rules (PSR).

Transcript

00:00Everton's challenging summer has taken another twist with the sale of their women's team

00:06to a parent company.

00:08A move expected to generate a paper profit worth tens of millions of pounds and provide

00:14breathing space under the Premier League's profitability and sustainability rules.

00:21Company's house records show that Everton football club women have been transferred

00:26to Roundhouse Capital Holdings, a company controlled by new owner Dan Freakin.

00:33Roundhouse was the vehicle used by the Freakin Group to complete their takeover of Everton

00:38in December.

00:40Club sources insist the sale is designated to make the women's team a standalone entity

00:45capable of attracting fresh investments from the United States.

00:50However they acknowledge that the transaction will also help with PSR compliance, a pressing

00:55concern for the men's side, as David Moyes looks to strengthen ahead of the new season.

01:02Everton become the third Premier League side to use this approach, following Chelsea and

01:07Aston Villa, who have also sold women's teams to related companies.

01:11While it is permitted domestically, UEFA does not allow such transactions under its own financial

01:18rules, a point that has drawn criticism in some quarters.

01:23This is not unfamiliar territory for Everton, who were docked six points for a PSR breach

01:28in 2021 and a further two points in 2022, avoiding further deductions as Moyes seeks to push the

01:35team forward after recent struggles.

01:39Football finance expert Kieran Maguire believes the sale will deliver a significant accounting benefit.

01:45Everton have transferred their women's club into a holding company under the same ownership,

01:50will be able to use the profit generated from that to help comply with PSR, he said.

01:56With Chelsea's women's side sold for £200 million, around ten times their annual revenue,

02:02Maguire estimates Everton could justify a valuation in the region of 60.

02:06In a summer of tight budgets, that figure could prove vital in keeping the club competitive.

02:12Yes, thank you for joining me again.

02:19Thank you for listening.

02:23I'll have a follow-up.

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