Everton finances

Paradise Lost? – the Panorama story

Paradise Lost?

This evening the BBC investigative programme “Panorama” ran the first of  two episodes looking at offshore finance, in particular the so-called “Paradise Papers”.

The programme spends a considerable amount of time examining Usmanov and Moshiri’s investment in Arsenal and Moshiri’s subsequent acquisition of Everton shares.



As I’ve described in detail below (and here) Usmanov and Moshiri set up a company Red & White Holdings to acquire Arsenal shares in 2007. R&W Holdings was owned 50/50 between Moshiri and Usmanov.

Between August 2007 when Dein sold his 14.58% stake in Arsenal to R&W, to just before Kroenke secured 62% in a takeover in April 2011, R&W acquired 27% of Arsenal. Ultimately at the time Moshiri sold his stake in R&W to Usmanov in February 2016 the company held 30.04%.

Panorama suggest that the funds used to acquire the Arsenal shares came from an Usmanov company Epion Fundings.


Because Panorama suggest the funds came from an Usmanov company, the inference is that Moshiri’s shares in R&W were effectively a gift from Usmanov to Moshiri.

This is denied by Moshiri’s lawyers and Usmanov himself.

In February 2016 Moshiri sold his 50% stake in R&W Holdings to acquire his 49.9% stake in Everton. Premier League rules required Moshiri to dispose of his Arsenal shares held indirectly before acquiring his Everton stake.

However in order for the Moshiri acquisition of Everton shares to go ahead the Premier League had to give its approval first. That approval included an investigation into the arrangements between Moshiri and Usmanov.

The Panorama team infer that because of the supposed gift, Usmanov’s money was used to acquire Moshiri’s stake in Everton. From a legal perspective this doesn’t stand up, a willing donor makes a gift to a recipient and the title (ownership) passes from one to the other. So even if it was a gift (denied by both Moshiri’s lawyers and Usmanov) it’s a strange conclusion for Panorama to reach.


Since first publishing this article, the Guardian have published the following:

“The Guardian has been shown a document in which Epion did acknowledge receiving payment from a company owned by Moshiri for his half of the Arsenal stake, in full.”

Premier League Statement

The Premier League have made the following statement:

We would not disclose confidential information about clubs or individuals but can explain our general rules and policies in this area.

“The Premier League has wide-ranging rules in the areas of club ownership and finance. These include prospective new owners having to meet the Premier League Board and provide extensive detail on the sources and sufficiency of funding they have in place.

“They must also submit information on the financial structure of any proposed investment, and a business plan demonstrating that all liabilities can be met for at least 12 months ahead.

“The League prohibits any club owner or director from having an interest in another club, or the ability to influence another club’s policies. Should a prospective club owner have previously held shares in a different club, they must provide evidence that they have been divested.

“Only when these and many other rules have been applied, and due diligence completed, will the Premier League Board allow an investment to proceed.

Usmanov’s lawyers were also contacted by the BBC show, and they denied that he had any involvement at all with the Blues.

Usmanov’s representatives told Panorama: “He has no say, control or influence in the running of Everton Football Club. 

Our client does not and never has owned or controlled Everton.”


Part of the programme also examined the role of a company called Bridgewaters in the Isle of Man. Like many other similar companies Bridgewaters provide corporate services, offshore administration and corporate management to thousands of companies.

Blue Heaven Holdings, the company owned by Moshiri that holds his Everton shares is administered by Bridgewaters. As part of its duties it provides a company director who is Isle of Man resident. The other director of Blue Heaven Holdings is employed by USM the company jointly owned by Usmanov, Skoch and Moshiri.

The BBC allege that Bridgewaters was bought by Usmanov in 2011. This is denied by both Bridgewaters and Usmanov. This is something of a red herring, the role of Bridgewaters is to act as an administrator and provide corporate services. It does not in any way control the investment activities of Blue Heaven Holdings.

Impact on Everton

I have to say that the allegations made do not concern me at all, I do not believe for a second the Premier League will do anything other than refer to their statement above.

I am concerned though about the reputational damage to Everton, even if there is no substance to the claims made. This sort of publicity does damage the brand and the good standing of the club affecting potential commercial deals, and possibly even the ability to attract players.

Thus it is even more critical that Everton use the media and wider public relations to ensure that the club is not damaged in anyway. As we have said many times on #EvertonBusinessMatters this is not a strong point for the organisation and must be looked at in the light of these allegations, ensuring positive messages and the understanding that shareholders, the club and the Premier League have acted properly and in compliance with the Premier League regulations.

It is usual in these circumstances for the lawyers to suggest minimal or no comment. However even minimal comment if made can still be powerful and back up statements made by the Premier League, Usmanov and Moshiri.

The silent approach is not what is required from the club, PR and crisis management experts would strongly advise the opposite, I hope they listen.


4 replies »

  1. Just to clarify Esk… the BBC are alleging that the 50% of R&W Holdings that Moshiri sold to Usmanov in order to fund his major shareholder acquisition of Everton was originally a gift from Usmanov to Moshiri ?
    If that’s true, that’s one heck of a gift even for guys at that level of the financial pecking order.

    Are the BBC suggesting then that Usmanov gifted Moshiri 50% of R&W as a deliberate re-funding ploy for when Moshiri decided to go out on his own at some undetermined point in future time ?
    Surely that pre-supposes that the two of them had a (sub-conscious) plan for Moshiri to branch out on his own at some point with Usmanov being the funder ?

    I’m only a layman, but that doesn’t make sense to me.

    Would a billionaire gift 50% of a company to a close friend and business partner together with an open-ended time schedule to buy it back to enable the close friend and business partner to go it alone ?

    It doesn’t make sense to me, but then I’m not a billionaire so have no real understanding of how their minds work.

    • It’s a huge stretch to believe Andy that there was such a plan you are absolutely right. Since the programme and this article the Guardian have printed that they have seen a document in which Epion (Usmanov’s company) acknowledge receiving payment from a Moshiri company for his half of the Arsenal stake. So the “gift” argument does not stand up

  2. Spot on with the ending on communication as has been made many times in Business Matters. staying totally silent only allows our name to be dragged through the mud and some sort of statement should be made by the club

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