sport news Everton will need to pay a loan of £150MILLION if they suffer Premier League ... trends now
The catastrophic state of Everton’s finances is underlined by an outstanding loan of £150million, immediate repayment of which can be triggered by relegation.
If Everton fall out of England’s top division, administration could loom as well as a punishment if they are found to have breached the Premier League’s Profitability and Sustainability Rules (PSR).
The loan, extended from £100m to £150m by the club’s owner Farhad Moshiri last season, is repayable in 2027. But relegation would lead to a potential immediate demand for the money, as revealed in Everton’s 2021-22 financial accounts published on Friday.
The loan agreement includes ‘a covenant that assumes the club will remain in the Premier League, therefore the board have had to consider the scenario of relegation and the availability of these facilities in that scenario.
‘The [loan] providers have indicated that they remain supportive to [Everton] under each scenario. However, at the time of approval of the financial statements, there are no contractual commitments in place that would guarantee a waiver of the amounts payable in full or in part and therefore relegation would require a material repayment of debt as per the contract.’
Everton reported a loss for a fifth successive year in their much-anticipated financial results
The club will face potential catastrophe if they're relegated from the Premier League this term
Everton are one point above the relegation zone and just three points above 20th-placed Southampton. They play Tottenham at Goodison