Everton Women's Team Sold to Parent Company: A Strategic Move for Financial Compliance

Everton Football Club has made a significant move by selling its women's team to Roundhouse Capital Holdings, the parent company owned by American businessman Dan Friedkin. This strategic decision is aimed at improving the club's compliance with the Premier League's Profitability and Sustainability Rules (PSR).

Financial Implications and Compliance

The sale allows the women's team to operate as a standalone entity, which can attract minority investments. For the men's team, the sale is recorded as revenue, positively impacting their PSR position. Under PSR, clubs are restricted to a maximum loss of £105 million over a three-year period. Everton has faced point deductions in the past for breaching these rules, making this sale a crucial step towards financial stability.

Comparative Moves in the Premier League

Everton is the third Premier League club to sell its women's team to navigate financial regulations. Chelsea sold their women's team to parent company BlueCo for nearly £200 million in June 2024, attracting Reddit founder Alexis Ohanian as a minority investor. Similarly, Aston Villa sold its women's team to holding company V Sports in June.

Performance and Future Prospects

In the 2024-25 season, Everton's women's team finished eighth in the Women's Super League, reached the fifth round of the Women's FA Cup, and exited in the group stage of the Women's League Cup. The sale opens up opportunities for increased investment and growth, potentially attracting a new fanbase and sponsors.

Expert Opinions and Strategic Benefits

Football finance expert Kieran Maguire highlighted that this move is an investment opportunity, setting up the business to be more profitable in the future. The women's team's control of Goodison Park makes it an attractive proposition for investors. This strategic shift is expected to bring more attention and resources to the women's team, fostering growth and success in the competitive landscape of women's football.