Are Everton getting too excited over Usmanov links?

Fans of Everton are getting excited. Some fans of Arsenal are getting angry. The reason? Alisher Usmanov.

Evertonians have already spent his billions, turning the Scousers into champions; Gooners are sitting there saying “that could have been us”.

The truth is this is all very presumptuous. Usmanov has not invested in Everton, has not started spending billions, so it is a lot of fuss about nothing.

What Usmanov has said is interesting, however.

“Should there be a proposal or a possibility to invest in them with good potential returns, I would consider the deal.”

Usmanov has made a lot of his billions making smart investments. What he is talking about with Everton is investing in them. Most interesting is his “good potential returns” comment. This indicates that he would be investing in Everton to make money, like he did with Arsenal.

He invested around £180,000,000 into Arsenal, with a £550,000,000 return. Not a bad profit after 11 years. It should also be noted that bar buying shares, he did not put any other money into the club.

Some recent quotes around his sale of his Arsenal shares make interesting reading.

“When I bought the stake in Arsenal I believed that football brands would be able to generate a profit”.

So in two quotes in a short space of time, we have learnt the true intentions of Usmanov owning football clubs.

He is looking to invest in them to make money. Not to treat them as a play thing like the Manchester City’s owners and Roman Abramovich.

It should also be remembered that having $13bn “worth” is very different to having a lot of disposable cash.

Both City and Abramovich have plunged £1bn into their respective clubs, financing transfers, salaries and ground improvements. In City’s case, that is over a 10 year period. Abramovich has now been at Chelsea for 15 years.

Anyone that thinks that Usmanov will turn up at Everton and throw millions at them to turn them into a force is deluded.

For a start, football is a different world to when Abramovich turned up.

Roman could spend £100million a year on new players, and that was double what Manchester United or Arsenal was spending.

This summer Fulham, Leicester and West Ham all spent £100million on transfers. Everton themselves spent £89million.

It would probably take a good £200million a year investment over 3 or 4 years for Everton to become a top 4 regular, let alone competitors, taking into account transfer fees and the wages – Everton currently pay about £100m in salaries less than Manchester United, Manchester City, Chelsea, Arsenal and Liverpool.

Usmanov is a very rich man, but his wealth is tied up in investments, in other companies. Does he have £1bn to throw at them, with no guarantee of return? And that is before we even discuss the £500m needed for their new stadium.

I imagine what Usmanov thinks when he sees Everton is a massively undervalued club. A huge chance to make some money, grow his wealth even quicker then he did at Arsenal.

With Everton valued at £200million they are clearly undervalued. When you consider that Tottenham – a similar sized club in terms of historic and recent success – were valued in 2016 at £450million.

Everton need a new stadium, I can see a scenario where Usmanov is thinking the follow:

Spend £100million on the remaining Everton shares – becoming co-owner with friend Farhad Moshiri taking their joint investment to £180million.

Spend £500million on the new ground, whilst selling Goodison Park to Usmanov’s own development company for a nominal fee (the ground it sits on is worth about £6million). Usmanov then develops Goodison into flats for profit.

New buld flats in that area are going for about £300,000, that should yeald about a £150,000 profit per flat. That’ll generate about £80million profit for Usmanov.

So in total, Usmanov would have invested £680million in Everton – with a return already of £80,000,000.

In the time it will take to build the stadium, and with very little debt repayments, over a 10-year period, the club could well be worth nearer £1bn. All with little investment on the playing side.

£1bn would not be unreachable with a 55,000 seater stadium, a top 7 side and new TV deals. It is similar to what Tottenham are worth once the new ground is taken into account.

This is all back of a fag packet stuff, but with Usmanov saying he is looking for good returns, he is clearly talking about money, not trophies.

So Evertonians, cancel that bus period, Arsenal fans, stop talking rubbish about what we could have had.

Usmanov is not going to turn Everton into Manchester City or PSG.

Keenos

Advertisements

4 thoughts on “Are Everton getting too excited over Usmanov links?

  1. Joe Edwards

    Your article is flawed in so many areas is barely warrants a response but here goes.Wealth such as that Usamanov has opens low level interest finance so it is irrelevant that it is tied up in investments as many of them can be tradef ,offset or liquidated easily, as in the case of his Arsenal shares.Your Maths regarding the property is als9 misguided, the land Goodison sits on is worth nowhere near the 6 million you quote and new build flats would struggle to be sold at a fraction of the 300k you quote in your article,it is a low value area of Liverpool. That leads to your calculations regarding Usamanovs lack of investment in Arsenal other than.the shares option he bought.Usamanov was clear in his communication that his lack of a position on the Arsenal board and his battle for control with kroenke was a major factor in the lack of his investment in Arsenal.Finally Usamanov has already invested 75 million in Everton through the sponsorship of the training ground.
    Excuse me.when i say sir your article is nothing more than the assessment of a new squeeze by a bitter spurned lover.

    Reply
  2. JohnstonJones

    £300k for a flat in Everton? It must be the penthouse with 10 rooms. Bytheway the Council are Loaning Everton the money for the new ground, so Usmanov‘s money ain’t needed for that part, you’re also alluding from the fack that Usmanov wanted to plough money into Arsenal but was unable to due to being a minority shareholder.

    Reply
  3. gunnerbear

    I see the point you’re making but I think the £300k price tag for a flat in that area – or even Liverpool as a whole – is a huge overvaluation.

    Reply
  4. Bluearmy18

    As an evertonian i know this area very well.. 300k for a flat is pure planet cookoo.. you might get 80k 2 bed, and 85k 3 bed maximum. If he is this far put, what about his other claims

    Reply

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.