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Everton FC has signed a landmark finance deal with a Chinese bank that could bring in tens of millions of pounds over the next three years.

And the club says the £60m deal could open up new opportunities in the massive Chinese market.

Industrial and Commercial Bank of China – the world’s biggest bank – has agreed to give the club a £60m three-year credit facility.

It’s the bank’s first deal with a Premier League side and the company says it’s proud to have chosen such an “ambitious club” to work with.

The new finance deal comes as Everton are embarking on a spending spree, with the acquisitions of Sandro Ramirez and Michael Keane announced on Monday.

Jothann Durnall, relationship manager at ICBC London added: “There are a number of reasons we’re delighted to reach this agreement with Everton.

“Not only is it our first partnership with a UK football club, but it’s exciting for us to partner with such an ambitious club – we’re all looking forward to seeing the facility we’ve agreed playing a part in the club’s future successes.”

We’ve taken a closer look at why Everton have done this deal and at what it could mean for the club.

(Image: Colin Lane)

* What’s the money for – is it for the stadium?

It’s not for the Bramley Moore Dock stadium plan– £60m wouldn’t be anywhere near enough for that project.

Instead this money will be used for the club’s day-to-day spending, whether on transfers or other activities.

The finance deal has only just been announced but it was actually agreed on June 30 after it got Premier League approval.

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* What the heck is a “credit facility”?

Everton will not just get £60m cash upfront. Instead, the deal means that a £60m funding pot is always available for Everton to dip into.

It’s similar to an overdraft. You don’t have to use it – but if you do, you can use it instantly and you know how much the borrowing will cost you.

So for the next three years, Everton bosses know that they will always have up to £60m to borrow.

And just like an overdraft, the facility is always there. They can dip into it and pay it off and still have £60m available.

In other words, Everton could get more than £60m in funding from this deal, depending on what they choose to do with the credit facility.

* Why are they doing it?

Because it’s easier than borrowing money every time you need it.

All big football clubs might have to make quick decisions on spending a lot of money – when a target player becomes available, for example.

Without this deal, Everton might have to do separate finance deals each time. That would take time and could cost.

With this deal, in theory, Everton has the financial headroom over the next few years to take those quick decisions.

Sasha Ryazantsev, director at Everton, added: “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’.”

* What does it mean for transfers?

This deal could mean that the club no longer needs to sell to buy.

In recent years Everton has had to fund its transfer spending by selling key players. But now the club has this finance package in place alongside its backing from Farhad Moshiri, it can make snap decisions to buy players without being forced to sell existing squad members.

* Can’t Farhad Moshiri just fund things?

Everton’s principal shareholder may be proudly investing in the club, but he doesn’t necessarily want to be funding day-today expenses – he wants the club to stand on its own two feet.

As above, this deal gives the club a bit of extra financial flexibility day-to-day without having to go directly to Mr Moshiri every time there’s an unexpected expense.

Mr Ryazantsev said: “Building on the significant shareholder contribution the club has received over the last year, Everton is now well-funded with sustainable long-term capital.”

(Image: Jan Kruger/Getty Images)

* China connection

Everton FC is keen to break into the massive Chinese market, with its hundreds of millions of potential fans.

Teaming up with such a massive Chinese bank could bring Everton’s name to a much bigger audience, particularly once the Premier League’s latest massive TV deal in China kicks in.

Liverpool FC is already pushing into that market and Everton won’t want to be left behind.

Mr Ryazantsev said: “The new relationship with ICBC also represents an important step for us into the Chinese capital market, and we hope to develop further commercial opportunities in China in the future.”

* What’s in it for the bank?

It’s the world’s largest bank in terms of the assets it manages, but ICBC isn’t really a household name. Doing deals with Premier League clubs will surely change that.

Ruixiang Han, General Manager of ICBC London, said “This transaction is another important milestone for ICBC in London, highlighting not only our ability to build strong relationships but also

underlining the growing credibility of Chinese banks.

“With the London branch continuing to grow since its establishment we intend to continue building on this momentum and establish ourselves as a credible and capable banking partner.”

* Does this affect the stadium finance deal with the council?

The ICBC agreement is completely separate from the £300m finance deal the club agreed with Liverpool council over the stadium and shouldn’t affect it.

Under that deal, a “Special Purpose Vehicle” company has been created by the club and the council so Everton can take advantage of the council’s better credit rating when it borrows money for the stadium.

As part of that deal the SPV has first dibs on Everton’s most important sources of income, like TV rights. That should ensure council taxpayers won’t suffer any loss if for any reason Everton can’t pay its rent on the new stadium.

And that agreement won’t change with this latest deal.