Looking for the latest updates on Everton’s financial status? You’re in for a treat! According to the long-awaited publication of the club’s accounts, Everton has succeeded in making significant reductions to their losses, down £76.2m from £120.9m the previous year, and wages-to-turnover ratio. With a cumulated loss of over £430m, Everton is moving in the right direction despite returning a loss for the fifth successive year with the £44.7million deficit reported for the 2020-21 season.
A substantial portion of revenue brought in during this period was from player trading, with the £60m sale of Richarlison to Tottenham making a massive difference to the accounts. However, the Premier League has recently referred Everton to an independent commission for an alleged breach of profit and sustainability rules. Clubs are allowed to lose a maximum of £105m over three years, but Everton has pledged to “robustly defend” their position.
Despite a negative impact on player trading due to the global COVID-19 pandemic over the last three years, Everton still managed to reduce staff costs by £20.6m through cost-cutting measures, with total wages-to-turnover ratio reduced from 95 per cent to 90 per cent. Broadcast revenue was down by £31.3m from the previous year, primarily due to the delayed conclusion of the 2019-20 season falling into the prior financial year, having less fixtures broadcast, and dropping from 10th to 16th in the Premier League table.
However, of the fifteen clubs that have released their 2020-21 accounts to date, six – Arsenal, Chelsea, Bournemouth, Leicester, Manchester United, and Tottenham – all recorded heavier losses. Looking ahead, Everton has substantial plans for stadium development at Bramley-Moore Dock, with Farhad Moshiri providing an additional £70m of financial support post financial year-end.
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