Putin’s powerful oligarch could cause problems for Everton

This quote from the past is more relevant today than ever and suggests a lot: "I am proud to know Putin, and the fact that not everyone likes him is not Putin’s problem. They probably didn’t love (Harry) Truman after Nagasaki either." These are the words of Alisher Usmanov, one of the most powerful Russian oligarchs, whose wealth is estimated by Forbes magazine at around $14.3 billion. In addition to his great wealth and immense influence, the 68-year-old Uzbekistan native is also known as the owner or supporter of well-known sports clubs. However, Usmanov may now hit a major obstacle. The European Union has indefinitely frozen his assets, and the Russian businessman is also banned from traveling within the EU. The European Council commented on its recent actions toward the influential oligarch by stating, among other things, that Usmanov "actively supported—materially or financially—the Russian elites responsible for the annexation of Crimea and the destabilization of Ukraine." Putin’s close friend is also facing trouble in the United Kingdom, which is also considering imposing sanctions on him.

The main commercial partner of English Premier League club Everton FC is Usmanov’s company, USM Holdings. Moreover, the women’s team of the Toffees—as the club is nicknamed—has Russian mobile operator MegaFon as its main shirt sponsor. The majority shareholder in that company is the USM Holdings conglomerate. In addition, Everton’s current owner, Farhad Moshiri, is a long-time business partner of Usmanov’s and, apart from dozens of other projects, also serves as president of USM Holdings.

According to sports analyst Jozef Tokos, Everton FC is an attractive sports brand and will remain so in the future. Sanctions against Usmanov should therefore not pose an existential threat to the club. It's more of a reputational stain. "The EU and the United Kingdom have decided to act on principle. Similar cases can be seen with London’s Chelsea and Abramovich, or Manchester United in their commercial relationship with airline Aeroflot. The key message here is a clear and principled stance," Tokos told Economic Daily. Overall, Everton is an economically strong organization. According to KPMG, the club is valued at around €455 million, making it the 18th most valuable football team in the world. Revenues have also remained at solid levels, reaching €212 million in the season before last. However, things are not going well for Everton on the pitch. The team is in 17th place in the league, just one point above relegation, and a squad valued at €453 million is underperforming. On top of that, the club’s management is facing additional complications behind the scenes. In the current situation, Usmanov’s association with the club is no PR asset—on the contrary.