Everton’s Grim Financial Accounts Raise Red Flags: Points Deduction or Worse?
Everton’s financial woes have come under renewed scrutiny after the release of their accounts for the 2022/23 season, currently being investigated by the Premier League. The Toffees who have been hit with point deduction already this season have been charged for the second time, and could spell further punishment for the Merseyside club as reported by Sports Buddy.
Released During Busy Weekend, Accounts Show Massive Loss
The club chose a busy Premier League weekend to unveil the accounts, which reveal a staggering £89.1 million loss for the period ending July 2023.
This figure is nearly double the previous year’s deficit and marks the sixth consecutive year of financial losses for Everton. Over the past three seasons alone, the club has accumulated a combined loss of £255 million.
Profit from Player Trading Fails to Offset Losses
Despite generating a £47.5 million profit through player sales, including the January 2023 transfer of Anthony Gordon to Newcastle for £61 million, reports from TheMirror shows Everton’s overall financial picture remains bleak.
Managerial Changes and Director Departures Add to Costs
The January 2023 dismissal of manager Frank Lampard and his staff resulted in a £7.1 million payout, while former directors Denise Barrett-Baxendale, Grant Ingles, and Graeme Sharp received £3.15 million upon their departures in June of the same year.
Debt and Stadium Costs Continue to Rise
Everton’s overall debt has reached a concerning £330.6 million, partly due to the ongoing construction of the Bramley-Moore Dock stadium project. By July 2023, the new stadium’s cost had ballooned to £449 million, with the club’s borrowings nearly doubling year-on-year from £174 million to a staggering £341 million.
Loss of Sponsorship Revenue Compounds Financial Challenges
Another significant factor impacting Everton’s finances is the loss of sponsorship money from Alisher Usmanov’s company USM, following sanctions imposed on the Uzbek-Russian tycoon in connection with the Russia-Ukraine war.
This resulted in a £15.8 million drop in revenue from sponsorships, advertising, and merchandising compared to the 2021/22 season.
Fans Fear Worst as Premier League Investigation Looms
Everton fans are understandably anxious as the Premier League’s Profit and Sustainability Rules (PSR) investigation progresses. The club already faced a six-point deduction for PSR breaches this season, and with news of the £89.1 million loss, they could face further punishment.
While the club attempts to highlight mitigating factors, the financial statements include a particularly concerning note: “Collectively, the above conditions indicate the existence of a material uncertainty that may cast significant doubt about the group’s ability to continue as a going concern.”
Despite expressing confidence in securing funding and achieving necessary revenue and savings, Everton’s financial situation paints a worrying picture for the club’s future.
