Everton announce huge financial losses but are ‘secure’
Everton ‘remain in a secure financial’ position according to owner Farhad Moshiri, despite having losses of more £110 million for the third straight season, and being in a perilous position in the Premier League.
The club, who currently sit 17th in the league, registered losses of £120.9m for the 2020/21 season, but attributed £103m of that to the impact of COVID-19.
Everton have recorded substantial financial losses over the course of the past three seasons https://t.co/Os1oFn2RoZ
— FootballJOE (@FootballJOE) April 5, 2022
Over the past three seasons the club has now lost £111.8m, £139.8m and now £120.9m, making a total of £372m in losses.
The Premier League’s profitability and sustainability rules mean that clubs are only allowed combined £105m losses for three seasons. Despite this clubs are allowed to adjust their losses in the past two years, due the COVID-19 pandemic, but Everton’s losses still exceed the allocated amount, meaning there is possibility for some form of punishment against the club.
The Merseyside club’s financial issues can be brought down to over spending, with former manager Carlo Ancelotti being gifted a large budget to use, where as Rafael Benitez was tasked with spending very little, something that could be argued, played a part in him losing his job.
Last season the team’s wage bill grew by over £20m, due to having Colombian James Rodriguez on the books, who earned around £200,000 a week.
Despite losses, Everton’s owner Moshiri, believes the club is fine financially.
"“[The Club] remains in a secure financial position thanks to the continued unwavering support and commitment of Farhad Moshiri and cost control measures continuously adopted by the club”.They added that the club had “experienced a unique set of financial circumstances in recent years” including “committing significant amounts of expenditure to a complex new stadium project” and dealing with the impact of Covid-19, “all whilst being in the initial stages of an investment cycle thanks to the support of [Moshiri]” (via BBC Sport)"
The Blues have also committed to building a new stadium in Liverpool that could cost up to £500m, but that is said to not be affected despite the negative turnover.
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Everton will be hoping their on field form can turn around, and significantly aid their off-field financial woes.