Everton strikes a major deal with the world’s biggest bank, which will result in a £60 million three-year credit facility.
Everton have been on a spending frenzy unlikely any seen before in the club’s rich history. And if the latest news is anything to go by, don’t expect them to calm down anytime soon.
As originally reported by the Echo‘s Alistair Houghton, the Blues have signed a landmark deal with Industrial and Commercial Bank of China (ICBC). This is the first venture into the Premier League for the world’s biggest bank, with Everton set to reap the benefits.
The agreement sees Everton receive a £60 million three-year credit facility. It is effectively a type of overdraft, meaning the money will not be available upfront, but is there for them to borrow at any time.
In theory, this will help the Toffees compete more effectively with the big five. As Houghton points out, they will no longer need to sell to buy.
Everton director Sasha Ryazantsev was asked for his thoughts on the deal. As reported by James Cambridge of the Express, Ryanzantsev said:
"“We are pleased to have entered into a partnership with ICBC which will increase our financial flexibility, reduce refinancing risk and lower funding costs, while adding to the list of Everton’s ‘firsts’.”"
Another advantage of signing this deal, is the potential exposure it will give the Blues in China. With the country’s significant fan base, the Everton brand has the opportunity to become evern more recognizable on a global scale.
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Everton are already ranked 13th in the world for brand value and 20th for brand strength. Partnering with ICBC can only improve these ranking, especially when the Premier League’s latest TV deal in China starts.
Houghton quite rightly asks how the bank benefits from this deal? In short, despite being the world’s biggest bank, ICBC isn’t a household name – making a deal with Everton will help change this.
Overall, this is a win-win for both sides. For Everton in particular, the fans now have even more reason to be excited about the future of their beloved club.
Next: At what point is re-signing Wayne Rooney bad business?
What’s your take on Everton’s deal with ICBC? What aspect of the agreement are you most encouraged by, if any? Share your thoughts in the comments section.