Yes they did. On weather interest on the stadium counted to p&s.
Interest on Stadium loans is a permissible deduction so is allowed for P&S rules.
If we had paid interest on the Stadium loans then they would have been offset. The issue is that we told the Premier League that commercial loans from Metro and Rights media funding were being used for the Stadium. That wasn't true the terms of the loans stated they were not being used for the Stadium.
here are the terms of the loans as published on the companies house website.
Use of Funds
If the facility is successfully completed, the funds will be used for working capital facility
purposes. Hence, in the same way as the Rights and Media Funding Limited facility this
additional financing support will be used for operational purposes during the 2020/21
season.
We do not intend to use any of the funds for the new stadium project or to buy players in
the transfer window. These funds will be used to continue to support the Club and all of the
activities that the Club are involved in for the term of the facility.
That representation is incorporated into the Metro Bank PLC loan agreement
dated 29 April 2021. Clause 2.3 reads –
Purpose
The Borrower shall apply all amounts borrowed by it…towards the payment of
indebtedness and its working capital requirements.
According to Everton’s accounts to 30 June 2022, the sums borrowed by
Everton from Metro Bank PLC totalled £26.25 million as at that date. By an
amended and restated agreement originally dated 29 April 2021 Rights &
Media Funding Ltd agreed to lend Everton the sum of £150 million. Clause
3.1 of that agreement provided –
The Borrower shall apply all amounts borrowed by it…towards its working capital
purposes.
According to Everton’s accounts to 30 June 2022 the sums borrowed under
this agreement totalled £150 million as at that date.
We misled the Premier League. The Stadium was being funded by INTEREST FREE loans from Moshiri. They didn't change the rules in any way whatsoever. All that happened is they found out we were misleading them.
You CAN claim for the interest on infrastructure loans. You CANNOT claim for loans for working capital that is used to fund everyday spending.
The Metro loan was to provide cashflow during COVID and the Rights media loans are used to get an advance on TV money basically a pay day loan.