The full extent of Everton‘s dependency on Farhad Moshiri backing has been illustrated again as they posted a loss of £120.9million in their latest annual accounts.
It takes the figure of losses for the last three financial years to £372.6m – it was £111.8m in 2019, £139.9m 12 months later – and Everton estimate the impact of the pandemic has cost them around £170m.
A consequence of the pandemic means Everton were only able to recoup £200,000 in gate receipts last season – three Premier League fixtures, played in front of limited crowds, plus a Carabao Cup quarter-final – while their additional Covid-19 costs for playing protocols.
Everton Football Club have posted a loss of £120million in the latest annual accounts
The figures indicate heavily reliance on owner Farhad Moshiri, who converted loans into shares to the tune of £100m then pumped in another £97m at the end of 2021
Everton’s wage bill went up in the 12 months to June 30, 2021 from £165m to £182m, while there has been a significant jump in the club’s debt over the same period from £2.3m in 2020 to £58.7m.
The club insist, however, they remain in a secure financial position and they have been in regular dialogue with the Premier League, who have allowed all clubs ‘addbacks’, incorporating such things as expenditure in community programmes and Academies, to compensate for the impact of Covid-19.
Everton – who are committed to finishing the new stadium being built at Bramley Moore Dock and believe it will be ready during the 2024/25 season – have what they describe as ‘headroom’ as circumstances with addbacks haven’t exceeded the Premier League’s Profit and Sustainability losses of more than £105m for three years.
Everton say they are in a secure financial position and are in contact with the Premier League
The club are still committed to building their new £500m stadium on Bramley Moore Dock
The overriding reason Everton are able to progress with their stadium build and stay on stable financial footing is owing to Moshiri, who converted loans into shares to the tune of £100m during 2020/21 and then pumped in another £97m after the year’s end.
In a statement, Everton said: ‘we can report a record turnover of £193.1m and remain in a secure financial position thanks to the continued and unwavering support and commitment of Farhad Moshiri, the Majority Shareholder, and cost control measures continuously adopted by the club.’ They added: ‘The club has also been working formally with the Premier League regarding its ongoing compliance with Profitability and Sustainability regulations.
‘The club has experienced a unique set of financial circumstances in recent years, including commiting significant amounts of expenditure to a complex new stadium project and dealing with a pandemic, all whilst being in the initial stages of an investment lifestyle cycle thanks to the support of its Majority Shareholder.’
