Charlie Methven recommends Leeds United takeover amid £1bn+ verdict on Everton
Former Sunderland part-owner Charlie Methven has namechecked Leeds United as a better option for 777 Partners to purchase than Everton.
The American investment fund are in the process of buying out Farhad Moshiri’s 94.1% stake in the Premier League side.
However, amid claims it will cost in excess of £1billion to purchase the club and then make it sustainable, Methven believes there are better alternatives.
Speaking on the Where’s The Money Gone? podcast with Adrian Goldberg [7 November, 10:15], Methven said: “I was doing some calculations on the kind of money we’re talking about here in terms of the level of debts that need to be paid off, the stadium costs that need to be completed and in terms of the running costs of the club in the meantime.
“When you tot it all up, my estimations get to about $1billion, £850m, that type of figure. And that is before you pay a single penny to Farhad Moshiri, the current owner. That’s the conundrum.
“Even in its new stadium right now, which they’d fill every match, their matchday revenues would ultimately be around £50m a year, which is half of Tottenham Hotspur’s.
“Their new stadium does not transfer Everton into a top-six club. It makes it much more likely they could become a sustainable top-10 club, but the question is, are you going to pay a billion for a club with potential to be a top 10-12 Premier League club when there are other clubs such as Aston Villa, Leeds, who are just as big and have more city dominance, particularly in Leeds’ case.”
The financial predicament Everton find themselves in paints a rather worrying picture, but Leeds supporters need no reminding of such issues.
Thankfully, the Whites are now under the capable hands of 49ers Enterprises, who became full owners at Elland Road in July.
That shuts the door on any involvement from 777 Partners, but the point made by Methven still stands.
Everton just do not look like a stable club to run right now, even more so when factoring in other ongoing court cases and the threat of relegation.
Those massive running costs will become harder to pay off if they are not bringing in Premier League riches, as Leeds are finding out.
With a bit more stability behind the scenes now, rival clubs will be looking on with jealousy if Leeds can regain their spot back in the top flight.
As for Everton, well there is little to be jealous about there on the face of it given their mounting issues.
In other Leeds United news, former Whites chief Victor Orta has made a points deduction claim against Everton.