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8 months ago
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The latest Everton accounts have been made public (see below) on Sunday, a couple of days before the Toffees play at St James’ Park.
Their Premier League results on the pitch (last three and a half months – Played 12 Won 0 Drawn 5 Lost 7) have been shocking.
Yet arguably off the pitch, these newly published financial results are even worse.
Some excellent instant concise analysis from football finance expert Kieran Maguire reacting to these latest 2022/23 Everton accounts:
“Losses (£89.1m) have increased due to no longer having Usmanov sponsor deals, wage decrease modest and interest costs doubling.”
“Losses over last three seasons £255m.”
“Player signings over £91m, players sold, including academy graduate Anthony Gordon, brought in £61m on players who originally cost £28m. Everton ended season with a squad costing £374m.”
The idea that Everton weren’t the ones pushing the sale of Anthony Gordon was always laughable, quite clearly they were desperately and very belatedly trying to avoid further serious issues with the Premier League’s FFP / PSR guidelines. However, very much too little too late when trying to make Gordon a scapegoat for the wider Everton issues when forcing him out and banking £40m (plus the possibility of a further £5m in add-ons).
Everton have already had six points deducted this season for the three years of accounts that ended with and included the 2021/22 season.
These latest shocking Everton accounts and losses, surely can only end with another points deduction, especially as they appear to have done pretty much nothing to try and turn things around in 2022/23 where PSR are concerned. Only a small decrease on their massive wage bill and spending £91m on players, £30m more than they banked from player sales including Gordon.
The Premier League have already charged Everton for the three years up to and including these 2022/23 season accounts, which Everton would have provided to the Premier League ahead of the club making them public.
The Premier League clearly believing that on the face of it, these 2022/23 Everton accounts appear to show another breach of the three years allowable losses of £105m. Whilst some of the £255m losses these past three seasons will be allowable and not be taken into account towards a possible breaching of that £105m limit on losses, very difficult to see how Everton are going to argue their way out of this one.
The Premier League’s independent commission’s decision will be made before the end of this season and difficult to see anything but another points deduction to be applied, just a case of how many points you would imagine.
With only picking up five points from their last possible 36, this is how things are looking for Everton in the Premier League table on Sunday night…
Official Everton announcement of 2022/23 accounts – 31 March 2024:
‘Everton Football Club has released its annual report and accounts for the 2022/23 season.
The accounts show the Club recorded a turnover of £172.2m, a fall of £8.9m against 2021/22 figures, with the key contributory factor being the indefinite suspension of key commercial partnerships worth more than £20m. A statutory loss of £89.1m was recorded for 2022/23.
Other key points within the 2022/2023 report and accounts include:
– Everton’s continued commitment in providing significant funds to develop the new stadium, with capital costs of £210.9m incurred during this financial year.
– The Club generated £47.5m profit on player trading.
– Sponsorship, advertising and commercial income totalled £19.2m for the season. In the partnership categories available for the Club to sell, revenue increased year-on-year, due to enhanced renewals and significant new agreements with Stake, Boxt, Christopher Ward and Marc Darcy. However, partnership income was significantly impacted by factors outside the Club’s control through the loss of £20m of contracted income because of the indefinitely suspended deals with USM, Megafon and Yota. Due to the nature of the suspension, the Club was unable to replace the partnership income against these deals.
– Other commercial revenue totalled £19.7m, a £4.4m uplift on 2021/22. This revenue included income from USA and Australia pre- and mid-season tours.
– Matchday gate receipts increased by £1.7m.
– Total broadcast revenue increased by £0.9m due to an uplift in the international merit prize money per place, netted against slight overall reductions in the equal share elements of both the UK and International TV revenue.
– Although wage expenditure has fallen, there has been an increase in operating expenses, includingcosts of pre- and mid-season fixtures in USA and Australia respectively (both yielding commercial income), settlements for departed coaching staff and Directors and increased new stadium operational expenditure.
– The Club’s net debt position increased to £330.6m because of significant investment in the Everton Stadium project.’

 
