Appeal board rules that Farhad Moshiri did not sign a £200 million stadium contract, deducting Everton from points.
Everton referenced a £200 million financial gap resulting from the collapse of a proposed naming rights deal for their new stadium as a mitigating factor in their breach of profit and sustainability regulations.
However, the appeal board revealed that the club’s majority shareholder, Farhad Moshiri, did not finalize the paperwork for the deal.
In January 2020, Everton announced that Alisher Usmanov’s company, USM, had paid £30
million for the option to become the main sponsor of the stadium.
By March 14 of the same year, the club reportedly had a £200 million naming rights agreement in place with Usmanov for their future home at Bramley-Moore Dock.
According to the appeal board’s written reasons, Moshiri hoped Usmanov would heavily invest in the club. An option and naming rights agreement for the stadium and training facility with USM was signed
on January 7, 2020, to take effect from the 2024/25 season.
However, negotiations were underway to expedite this to the financial year 2022.
These plans were disrupted due to sanctions imposed on Russian entities, including Usmanov and USM, following the invasion of Ukraine.
Despite Everton’s assertion that this loss of potential revenue should have been considered as mitigation, the commission found it inadequate.
They argued that the uncertainty surrounding the agreement and the loss of a proposed
deal were typical business challenges. The commission also noted that the naming agreement
had not been finalized before the imposition of sanctions.
The commission concluded that there was insufficient evidence to demonstrate the
probability of receiving funds from this source in the 2022 financial year.
Therefore, they upheld the original penalty, finding Everton’s culpability unchanged by this circumstance.
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