This is of interest, take note particularly of the parts in bold. To me basically it means the club is insolvent.
Beardwood report
Everton failed to make the top 20 of Forbes's recently-published list of the world's most valuable football clubs so the Liverpool Echo discussed the club's valuation with financial expert Joe Beardwood.
The business magazine ranks the Blues' supposed peers like Tottenham Hotspur (13th with a valuation of $600million), Newcastle United (18th, $349million) and West Ham United (19th, $309million) all in the top 20 but Everton did not make the cut despite appearing in the Deloitte money league, which tallies revenue and not worth.
In the opinion of Beardwood, who gave a recent presentation to the Shareholders Association, however, the club would likely be a lot lower than people might expect given Everton's place in the Deloitte table.
“Given the guidelines used in this report I doubt that Everton would even be in the top 40," he said.
“Forbes are calculating the final figures by using a club's enterprise value which is your equity minus debt. An issue that Everton have in this respect is that they're in negative equity as they have more debt than their assets are worth.
“When taking all of this into account Everton would be worth around $206million and given that Forbes are using an exchange rate of $1 to 62 pence then that makes Everton Football Club worth around £127million - which for me feels about right.
“Goodison Park is probably worth around £6million to Everton because if it is not going to be used as a football stadium then it's going to be sold for properties or business and that would be a fair value for a piece of land that size in Walton.
“A new stadium would probably cost around £200million and you'd be looking to get a 5% yield from that.
“It would cost around £10million per year to service the debt but how much extra revenue would you make from that?
“”I don't think that Everton need a new stadium. We fill 40,000 at the moment but we're not a corporate club.
“I'd agree that we'd need a new stadium if we were in London but I don't see any evidence that Everton could attract the likes of Vodafone or Microsoft into their ground to buy big boxes.
“Most of the people in the boxes at Everton are Liverpool businessmen who have made good."
Quotes sourced from
Liverpool Echo