Everton’s £587m Valuation Amidst Moshiri’s Negotiations with MSP Sports Capital
MSP Sports Capital could soon invest in Everton, currently facing a volatile season on and off the pitch, but an affirming report from Forbes magazine places them as the 25th most valuable football club worldwide. Dave Powell, in the Liverpool Echo, shares more details on this story.
The Valuation Game
Football club valuations have been a hot topic in recent years, largely due to the startling rise in their prices, especially within the Premier League. American financial magazine Forbes has been instrumental in providing these valuation estimates, leading the field in financial assessments of sports teams worldwide.
The rudimentary system of revenue multiples has long been the method for evaluating sports teams, a value that is significantly lesser for Premier League clubs compared to major American teams across various sports, notably the NFL.
Forbes’ Most Valuable Football Teams 2023
Forbes recently unveiled its 2023 football team valuation report, ranking the most valuable football clubs globally. Real Madrid, Manchester United, Barcelona, Liverpool, and Manchester City bagged the top five positions, with their valuations spanning between $4.99bn and $6.07bn. The remainder of the top 10 comprised Bayern Munich, Paris Saint-Germain, Chelsea, Tottenham Hotspur, and Arsenal.
Everton and MSP Sports Capital
Faced with the significant threat of relegation to the Championship, Everton managed to keep their Premier League status in a tense finale to the season. Currently, Blues owner Farhad Moshiri is negotiating an investment deal with MSP Sports Capital, a New York-based firm. The deal, estimated at around £100m initially, is aimed to secure the final tranche of funding for the stadium build at Bramley-Moore Dock.
The arrangement is speculated to potentially include further funds in exchange for more equity, likely granting MSP a 25 per cent stake in Everton through a preferential share structure. This also means a reshuffle in the boardroom, introducing two MSP representatives.
Estimates of Everton’s actual worth vary, but if the MSP deal goes through for 25 per cent at £100m, this indicates a £400m valuation for the club. However, Forbes’ assessment ranks Everton as 25th out of 30 with a value of $744m (£597m), translating to a revenue multiple of approximately three.
According to the 2023 Forbes list, Everton witnessed the most significant year-on-year depreciation in valuation at 21 per cent compared to the 2022 figures. They, alongside Juventus and relegated Leicester City, are the only clubs amongst the top 30 to experience such a decline.
Other English clubs including Aston Villa, Leicester, Newcastle United, Crystal Palace, and West Ham United have surpassed Everton in terms of valuation. Also, reflecting the rising popularity of America’s MLS, Everton’s valuation trails behind four MLS franchises: New York City FC, LA Galaxy, Atlanta United, and LAFC.
Forbes uses a method of calculation that considers team values as enterprise values (equity plus net debt). It incorporates the economics of the team’s stadium (excluding the value of the real estate itself) and bases its findings on comparable transactions. The sources of information include annual reports and documents of teams, team executives and investors, reports from credit rating agencies, sports bankers, and the annual Deloitte Football Money League report.