Everton reveal latest club accounts with stark impact…

Everton reveal latest club accounts with stark impact of Richarlison sale

Everton have posted an operating loss of £44.7million for the financial year 2021/22 (FY22).

The figure was significantly less than their loss of £121m for the previous year or £139.9m in 2019/20 – seasons in which football clubs were forced to play matches behind closed doors due to the coronavirus pandemic – with Everton one of nine Premier League clubs to have reported losses so far, seven of which were heavier than the Blues (Arsenal, Chelsea, Bournemouth, Leicester City, Manchester United, Tottenham Hotspur and Wolves).

But a significant chunk of the £67.7m generated through "player trading transactions" came from Richarlison joining Tottenham Hotspur back in June - just inside the financial year dealt with in these accounts. Lucas Digne also moved to Aston Villa in the winter window last season.

Everton’s turnover was £181m and this was aided by the return of supporters’ to Goodison Park (gate receipts of £15.6m, up from the £200,000 the previous financial year when most games were behind closed doors) and commercial revenue of £50.4m, a slight increase from the previous year’s £47m.

Everton spent £207m on the new stadium compared to £20.3m the previous year as this was the period in which they officially broke ground on the site at Bramley-Moore Dock while the club’s net debt position increased markedly to £141.7m (FY21 £58.2m) because of investment in the playing squad and significant investment in the new stadium.

Post year-end, majority shareholder Farhad Moshiri has provided a further £70m of financial support, which the club say is being used to fund the new stadium development and for operational cashflow requirements. Club sources describe this money as "shareholder investment" - and suggest it would be up to Mr Moshiri whether it is repaid to him in the future.

What the club describe as "the crystalised impact of the pandemic" in terms of lost revenue and additional costs, has been calculated at £90.4m across 2020 (£67.3m), 2021 (£14.8m) and 2022 (£8.3m) accounts respectively.

The club also "strongly believe" that further "substantial uncrystallised losses" have been incurred as a result of Covid-19. It is claimed this viewpoint has been supported by "independent third-party analysis".

Everton’s broadcast revenue was £115.1m, which is down by £31.3m the previous year. This reduction was due to having fewer fixtures broadcast and a lower league position as they dropped from 10th to 16th.

Everton’s commercial revenue figures were also achieved despite the suspension with immediate effect of all commercial sponsorship arrangements with the Russian companies USM, Megafon and Yota. And total commercial revenue from sponsorship, advertising and merchandising and other commercial activities has grown from £10.9m to £50.4m over a 10-year period between 2011/12 and 2021/22 (16% compounded growth per annum).

Staff costs have reduced by £20.6m as the club says it remains committed to reducing the wage-to-turnover ratio, reducing from 95% in FY21 to 90% in FY22.

The club also states that as in previous years, the outsourcing of their retail and catering operations, which reduces turnover and costs in this area compared to other clubs who manage these functions in-house, results in an artificially inflated wage-to-turnover ratio and adjusting for this, their total wage-to-turnover ratio would reduce accordingly from 92% in FY21 to 87% in FY22.

The club’s other operating costs increased to £36.2m (FY21: £25.4m), which was mainly driven by increased costs from staging fixtures at Goodison Park with fans in attendance.

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