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Everton’s Premier League survival yields extra financial boost despite lower finish

Everton’s nail-biting last-day victory secured their place in the Premier League for the 2022/23 season, and financially, the impact was significant, writes the LiverpoolEcho. Despite finishing a position lower than the previous season, the club is set to earn around £4.6 million more in merit payments from the Premier League.

The Toffees’ Premier League status proved crucial, considering their recent financial struggles. The club has faced constraints in the transfer market due to the Premier League’s profit and sustainability rules. With losses exceeding £430 million over five consecutive financial years, Everton had to navigate carefully to avoid breaching the P&S rules, a charge the club denies.

Behind the scenes, major boardroom changes and investment from New York-based firm MSP Sports Capital are underway, while a stadium build still requires additional funding. Remaining in the Premier League has saved the club from potential financial catastrophe, sparing them from drastic revenue drops and the potential sale of key players.

The Premier League’s broadcast deals are the most lucrative in world football, with its international rights providing a significant boost to club finances. The recent three-year broadcast cycle, valued at over £10 billion, saw international rights surpass domestic ones for the first time. The value of international rights rose from around £4 billion to over £5 billion for the period between 2022 and 2025.

The Premier League distributes central payments to clubs based on equal shares of domestic and international rights, merit payments, facilities fees, and commercial revenues. For clubs finishing higher in the league, the merit payments increase accordingly.

In the 2021/22 season, Everton’s 16th-place finish earned them approximately £10.3 million, with £1.84 million coming from international merit payments. Thanks to the new broadcast deal, for their 17th-place finish last season, Everton’s merit payment is estimated to be around £14.9 million, with a significant boost from international merit payments.

This financial windfall will be crucial for Everton, as they continue to navigate financial limitations and seek to strengthen their squad in the upcoming transfer window. The club aims to stabilize its position in the league and ensure a smooth transition to their new 52,888-seater stadium on the River Mersey, which promises previously untapped revenue streams for the future.

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