Everton needs new commercial strategy

As deals linked to Alisher Umsanov are worth an estimated £20 million a year, a sizeable hole was left in the finances of Everton who had already posted three consecutive losses of more than £100 million. 

There were question marks around Everton’s finances before those partnerships were suspended. Without them, this applies even more. 

For the financial year 2019-20, at least £42 million of Everton’s £64 million sponsorship receipts came from USM Holdings (the company in which Usmanov holds a 49 per cent stake) alone.

Then there is the anticipated loss of USM as a potential sponsor for the club’s new stadium. Included in the same set of accounts was a £30 million sum from USM which granted it first option on naming rights at the new facility at Bramley-Moore Dock. The direction of travel at the moment is that such an option is highly unlikely to be exercised. 

Everton knew existing revenue streams would need to be improved, and partnership portfolios diversified. With the USM arrangement suspended indefinitely, and unlikely to get reinstated, that is almost certain to include looking for a new stadium naming-rights partner as well as a new training-ground sponsor. 

Everton were the only side in the Premier League not to have a sleeve sponsor last season. Despite interest, no party has yet met their valuation for that patch of their kit. The chances of them budging on their price are minimal, for fear of potentially devaluing other commercial assets.

Where once the clubsaid that “in an ideal world” the club would not be sponsored by a gambling company, referring particularly to the decision to part ways with Sport Pesa, now there is a feeling internally that very few sectors can be ruled out completely — that, in simple terms, securing the maximum amount possible for the 2022-23 season is the priority.

It opens up the possibility of Everton working again with a gambling firm, or indeed moving into new space with a crypto partner. 

They have also followed fellow north-west-of-England sides Manchester City, Manchester United and Liverpool in having a London-based commercial presence, which is focused solely on securing partnerships. Staff at Everton’s London office have been tasked with drawing on their experience working with/at other clubs, including Paris Saint-Germain and Manchester United, as well as in other sports such as NFL and Formula 1. 

As part of a wider international growth plan, strategic partnerships have also been secured with consultants across South America with a view to increasing Everton’s media presence and fan base in countries such as Brazil and Colombia. Globally, the number of Everton supporters’ clubs has increased to more than 250. 

Goodison, for all its allure, does not offer the same commercial opportunities as other top-flight stadiums. It has far fewer corporate boxes and lacks the scope for selling premium packages in the way that, say, Tottenham’s new stadium does. 

Nor do Everton as yet pack the same commercial punch as some of the clubs they are looking to emulate. They were 18th in the latest Deloitte Money League table, with revenue of €218 million. Not only did they lag far behind some of the Premier League’s traditional elite, but they also finished behind West Ham, Leicester and Wolves. 

Even with those USM sponsorship deals, there was an acceptance in some quarters that Everton were only ‘at par’ commercially for a club of their status and tradition. Without those funds, substantial questions remain.