The summer transfer window is fast-approaching, and Everton have been linked with several players in recent weeks.
Jarrod Bowen is emerging as an Everton target, and Manchester City’s John Stones has also been heavily linked to the Hill Dickinson Stadium.
AZ Alkmaar centre-forward Troy Parrott is another name being mooted to join the Toffees after his prolific season in Holland.
Rank these striker options from best to worst… 😬
There's going to be some different opinions on this! 🫣
That said, Everton News have decided to speak exclusively with finance expert Adam Williams about the club’s potential transfer budget this summer.
Everton’s league finish could influence transfer budget
“The first thing to say is that clubs model their transfer and wage budgets based on different scenarios, which could fluctuate between now and the end of the season,” Williams told Everton News.
“Everton are 10th but have an outside chance of getting into the Conference League next season, plus every place in the Premier League is worth about £3m.
“At the moment, they could mathematically finish as high as 7th or as low as 16th. That’s a range of nearly £30m.”
How would you rate The Friedkin Group’s first year at Everton? 👏
Everton’s cash balance has increased
“I think we can be confident that they will spend again this summer,” Williams continued.
“They had £79m in the bank at the end of 2024-25 thanks to an increase in loans and player sales. Even with the new stadium, they are probably cash-flow negative or thereabouts this season because of stadium interest payments, increased transfer debts, a bigger wage bill and so on.
“However, the actual cash balance will, I think, have increased, because the money the Friedkin Group have put into the club via share issues this season. They’ve put in well over £100m.
What would you do if you were Angus Kinnear this summer? 🫣
“Now, they definitely need a significant amount of that money for day-to-day costs, but it also gives them reserves to spend on upfront payments for players. They also had very low transfer debt coming into this season, which gives them some room for manoeuvre there too.
“The Hill Dickinson Stadium and the guaranteed £45m-plus that gives you in revenue per season plus the more favourable rearrangement of their debt repayment plan means that they can budget more reliably now.”
Everton could spend another £100m net this summer
“Don’t get me wrong, they aren’t going to be going wild because it will take time for the benefits of the new stadium to fully materialise, but I would be at all surprised if they spent another £100m net this summer, though there will be some squad churn too.
“We know from the fact they sold the women’s team to themselves heavily implies that they were close to the bone with PSR in 2024-25. But they won’t have any issues with compliance in 2025-26. Thereafter, we move to SCR – and that is a system which should, in the long run, greatly favour Everton because it’s linked to revenue, not profit. Everton have one of the highest revenue ceilings in the Premier League.
Don’t hold back, let us know who you want gone this summer 👋
“The new system means clubs can’t spend any more than 85 per cent of their turnover plus a three-year average of player sale profits on first-team wages, transfers and agents’ fees. Everton were, by my back-of-an-envelope calculations, probably about £10m under that limit in 2024-25. In 2025-26, they should get a greater margin for error because revenue will probably increase faster than player costs. Either way, there is flexibility under SCR to exceed that 85 per cent cap for a few seasons if you offset the excess in future years.
“So, long story short, expect further investment in players. It won’t be gung-ho, but it does appear that there is real ambition there, plus regulatory scope to increase the budget.”
Receive a digest of our best Everton content each week direct to your mailbox
