Escaping the burden of PSR does not seem a possibility for Everton with a fresh update emerging out of the Premier League.
Brighter times are certainly ahead of Everton under the stewardship of The Friedkin Group following the takeover back in December.
Everton are expecting their new stadium will transform their finances and that will boost the club’s ability to spend this summer.
However, the frustration of PSR continues to linger on Merseyside as the Blues continue to assess their finances.
David Moyes will have his eyes on some big-name additions this summer ahead of the move to the state-of-the-art Hill Dickinson Stadium.
The club’s finances may now be in order following Farhad Moshiri’s departure, but the Toffees are set to be hit by a multi-million pound bill which will infuriate Angus Kinnear.
Everton FC v Manchester City FC - Premier League
Photo by Carl Recine/Getty Images
According to City AM, the Premier League have dropped a major clue on the plans to introduce an Independent Football Regulator (IFR) by allocating a £3m cost budget for next season.
Clubs are looking to nip certain loopholes in the bud like when Chelsea sold a hotel to benefit their PSR stance.
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Manchester United have exploited PSR through a separate account which has allowed them to continue spending this summer despite their disastrous campaign.
Although the Premier League lobbied against the notion of the IFR, it now seems as if the government-created concept will go ahead.
Speaking to Everton News, TBR Football’s Finance Expert Adam Williams has shed some light on how this could affect the Blues.
“Like most of the rest of the Premier League, Everton don’t want third-party interference in football administration,” said Williams
“Everton paid pretty significant administrative expenses when they contested the PSR charges last year. The accounts last year showed £10m in exceptional costs, which I think was split between the costs of refinancing the debt and the expenses related to the PSR tribunals. The regulator is a separate body to the Premier League, of course, but I think they will resent being asked to pay even more in non-football expenses.”
Despite the resistance from clubs like Everton, the Toffees are now going to have to pay their way and support the bill which is set to be introduced.
“There were some stories last year about the regulator costing £106m over its first decade – that’s a very specific number. If that’s accurate, it means Everton would be paying £5.3m towards it during that period. It’s a tiny amount in the grand scheme of things, but it’s more what the regulator represents that’s the issue here,” he added.
Since landing on Merseyside, Angus Kinnear is expecting an unprecedented summer at Everton with a mammoth task on his hands.
This will not be the news that Kinnear will have wanted to hear following his previous comments on the concept of the IFR.
During his time at Leeds United, the new Everton CEO slammed the idea of introducing a regulator, but his original comments have now been removed.
With this in mind, Williams provided his thoughts on Kinnear’s position as the bill now looks set to be passed.
“Angus Kinnear absolutely hates the idea of independent regulation. We haven’t heard The Friedkin Group speak on it, but they are free marketeers and I’d be very confident that they don’t want outside influence on the sport,” Williams said.
“I don’t know the feeling in the Everton fanbase specifically, but the regulator has broad support among supporters generally speaking. So even if Kinnear and Friedkin aren’t happy about it, they’re going to have to go along with it.
“The bill has had its third reading in the House of Lords and its now in the Commons. We’ve seen a lot of lobbying from stakeholders connected to the Premier League, so it will be interesting to see what the final draft looks like.”