Everton’s new Hill Dickinson Stadium is set to work to the club’s advantage once again on the back of recent developments being shared.
The Friedkin Group have been able to keep a tight rein on the finances since they were handed the keys on Merseyside last December.
As a result, David Moyes saw sufficient backing over the course of the summer transfer window, with considerable money spent on new signings.
This has largely been made possible by the stability brought to Everton by the American owner and the introduction of the Hill Dickinson Stadium.
The Friedkin Group injected an additional £107m into Everton at the start of the week, in what was another clear indication of their intentions to push the club in the right direction.
A huge day awaited Dan Friedkin on Friday [21st November] as all 20 Premier League clubs voting on the potential new financial regulations to replace PSR.
Everton v Brighton & Hove Albion - Premier League
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Everton set to unlock £250m through SCR vote
Everton News’ finance expert Adam Williams revealed earlier this week that Friedkin would be keen to see how the PSR vote was decided as he aims to continue the progression at the Hill Dickinson Stadium.
It has been a story which has gripped the Premier League, and it has been confirmed that PSR will be replaced by SCR [Squad Cost Ratio].
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On the back of the breaking news out of London, Williams has provided an insight as to what this could mean for the Toffees.
“Under the new SCR rules, clubs are going to be assessed on spending on football operations as a percentage of revenue rather than on their bottom line, which is a byword for profits or losses,” Williams told Everton News.
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“The new rules are complex, but on first reading I think they favour clubs like Everton who have the scope to earn big revenues without necessarily – and necessarily is the operative phrase here – generating consistent profits.”
“The Squad Cost Ratio system is going to take some getting used to, and it might be years until we fully understand its effects on clubs like Everton and the Premier League’s financial ecosystem as a whole. However, I think this will be one obvious and immediate benefit for clubs like Everton when the rules come into force in 2026-27.”
Everton continue their search for a new front-of-shirt sponsor as the club look to provide a boost to their finances once again.
But that is not the only significant financial boost that could be coming Everton’s way next year.
Everton set for Magic Weekend revenue boost
Adding another welcome boost to the books, it has been suggested that Everton are set to host Rugby League’s Magic Weekend next year.
It is an event that has recently been played at Newcastle United’s St. James’ Park, but the Toffees are expected to strip the Magpies of that title.
Following Friday’s development from the Premier League meeting in London, Williams has told Everton News exactly how the Magic Weekend could now prove even more lucrative for the Friedkins.
“For example, they might gross, say, £5m from hosting a big event like Magic Weekend at the Hill Dickinson Stadium. However, that £5m isn’t profit because you have a lot of costs that come with it. Under the old rules, you might only get, say, £1m worth of profit, and it’s that £1m which counts towards your bottom line and, by extension, your PSR allowance,” said Williams.
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“However, under the new rules, it’s revenue the Premier League is looking at, not profit. So of that hypothetical £5m, they can spend 85 per cent of it on first-team wages and transfers, if the owner sanctions that investment.
“I think Everton are going to be targeting £250m in revenue pretty soon, so that’s a playing budget of about £213m, plus whatever they are averaging on player sale profits over three years.”