Everton announce record losses of £111.8m for year to June 2019

Bonnyloyal

Well-Known Member
Everton have announced record losses of £111.8m for the year to June 2019 but say they are "committed to operating in a financially sustainable manner".
The losses have been adjusted for a 13-month period to incorporate when players' contracts come to an end.
But after a £30.6m profit in 2017 and a £13.1m loss in 2018, the latest figures show the alarming rate of spending under majority shareholder Farhad Moshiri.
Premier League profit and sustainability rules allow for a £105m loss over three years, with Everton's total loss in the same timeframe at £94.3m.
That does not include spending on Goodison Park and the club's academy, which reduces that loss.
But spending on players has taken wages to £160m, with Everton's wage-to-revenue ratio increasing from 77% in 2018 to 85% for last season.
Moshiri has spent about £450m on players and changed manager four times since he took over at the club in February 2016, leading to questions from fans about the club's sustainability.
The club's plight has not been helped by a poor start to this season, which led to the sacking of Marco Silva and his replacement by former AC Milan, Real Madrid and Chelsea boss Carlo Ancelotti.
Everton sit 11th in the Premier League, 11 points behind fourth-placed Chelsea.
But at the club's annual general meeting at Liverpool Philharmonic, the club said their net debt had been reduced from £65.7m to £9.2m over the past year because of a 40% growth in commercial revenue and loans from Iranian Moshiri.
The club also recorded their second-highest turnover of £187.7m, despite not competing in Europe.
Everton chief executive Denise Barrett-Baxendale said: "We have been aware of and planned for the impact the investment would have on our short-term profitability and this is part of a long-term sustainable business plan that demonstrates our commitment to operating in a financially sustainable manner."
Everton secure £30m stadium funding
Moshiri was not in attendance in Liverpool because Barrett-Baxendale said he was in "deep negotiations with one of the funding options" for their new £500m stadium at Bramley-Moore Dock.
She also revealed that Russian billionaire Alisher Usmanov has paid £30m to secure an option on the naming rights of the stadium, which is still awaiting planning permission. The club hope that will be granted this summer with the stadium completed in 2023.
Usmanov's company USM Holdings already sponsors Everton's training ground at Finch Farm.
Together with further investment in the squad and increased revenues, the club believe they can challenge for the top four in the Premier League and for European honours
"We are working tirelessly to be a club which fits with the very best in world football," added Barrett-Baxendale, who also defended the club's partnership with betting firm Sport Pesa after a question from a supporter.
Ancelotti - we are ambitious but it will take time
Ancelotti and director of football Marcel Brands took to the stage during the event in front of several hundred shareholders.
Italian Ancelotti, who was won three Champions Leagues as a manager, praised the club's ambition and said he would use coach Duncan Ferguson to provide "the fire" to help boost his team's position.
He said: "We can have big ambition, but we have to stay together and it takes time. The passion of the supporters has to be strong and in this sense the connection between the supporters and players is really important.
"The goal is to keep this spirit every game and try to play better football."
Brands, who spent the evening showing how he had restructured the squad, said that Ancelotti's change in formation to a 4-4-2 had left them light on the right side of attack.
But despite the ambition shown during the evening, he added a note of caution regarding the club's spending power after they were linked with Crystal Palace winger Wilfried Zaha.
The Dutchman said that buying players like Zaha for "£60m-£70m was not realistic if you look at our numbers".
 

SasaPapacLoyal54

Well-Known Member
160m on wages! No way. Have I read that wrong? That's astronomical!
And they still couldn't beat Liverpool's youth team.

I know it's up to the person how they spend their money but really don't get why billionaires waste so much money on English clubs.

I read that around about 300 million has been invested into Everton so far......for what really?

They ain't going to achieve anything.
 

applebear1976

Well-Known Member
there was a thread about Chelsea and there financials on here recently, Everton stood out for me as a club running in an unsustainable way

Spurs and Brighton have similar financial debts, but at least there's is because of new stadiums, Everton have not even done that yet
 

jefftracy

Well-Known Member
There’s no way these owners are putting their own money into these clubs. They’ll be loading the debt onto the clubs one way or another and creaming millions out of it for themselves. As long the TV income keeps rolling in it will mask the horror stories of their finances. The game changer is relegation and failing to get back up, even dropping another league and then it’s curtains.
 

UpperCanadianLoyal

Well-Known Member
Problem is that the ever increasing wages and player prices in the EPL is putting increasing pressure on every other league as a trickle down effect.

Eventually the whole football league system in England under the EPL will be in serious trouble. Look at the data from the Championship.
 

WalterLoyal

Well-Known Member
Everton are well financed.

It's no different than DK keeping our lights on.

Only they've a 100 million plus TV money every year.
That's a favourite line thrown out there by the tims in the media. Our board have not invested money to ''keep the lights on''. They have invested significant sums of money (£35m in the last 18 months alone) to improve all aspects of the club including the infrastructure, improving the stadium, developing the training ground, creating a scouting system and of course providing the manager with a budget which allows us to compete both domestically and in Europe.
 
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