Everton’s Financial Woes Continue: £44.7m Deficit Reported for Last Season and Points Deduction Fears Grow
Everton has once again returned a loss according to their 2021-22 accounts, marking the fifth successive year of financial dismay for the club. Their cumulative losses now stand at more than £430 million over this period. However, the club did manage to reduce their losses from the previous year by £76.2m and make significant changes to their wages-to-turnover ratio. Despite these improvements, the Premier League has referred Everton to an independent commission due to an alleged breach of profit and sustainability rules.
While the Toffees are at risk of a points deduction this season, Everton has pledged to “robustly defend” their position. Financially, there are signs that the club is at least moving in the right direction. Out of the 15 clubs to release their 2020-21 accounts, six have recorded heavier losses. Though the pandemic has negatively impacted the club, Everton has been initiating cost-cutting exercises across the board to reduce staff costs by £20.6m and the wages-to-turnover ratio from 95% to 90%.
However, Everton’s broadcast revenue was down by £31.3m from the previous year due to the delayed conclusion of the 2019-20 season, less fixtures being broadcast, and a drop from 10th to 16th in the Premier League table. Net debt also rose to £141.7m due to investment in the playing squad and costs associated with Bramley-Moore Dock’s new stadium build. Despite multiple financial setbacks, owner Farhad Moshiri has provided an additional £70m of financial support for further stadium development and operational cashflow requirements.
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