In the financial year 2021/22, Everton recorded an operating loss of £44.7 million, which is a significant improvement compared to their losses of £121 million and £139.9 million in the previous two seasons, respectively.
As relays the LiverpoolEcho, these losses were incurred during the pandemic, when football clubs were compelled to play games behind closed doors. Among the nine Premier League clubs that have reported losses so far, seven have incurred heavier losses than Everton (namely Arsenal, Chelsea, Bournemouth, Leicester City, Manchester United, Tottenham Hotspur, and Wolves).
However, a large portion of the £67.7 million generated through “player trading transactions” came from Richarlison’s transfer to Tottenham Hotspur in June, which took place just inside the financial year covered in these accounts. Additionally, Lucas Digne moved to Aston Villa during the winter transfer window of the previous season.
The return of supporters to Goodison Park provided a significant boost to Everton’s turnover, which amounted to £181 million. Gate receipts increased from £200,000 in the previous financial year, when most games were played behind closed doors, to £15.6 million. The club’s commercial revenue also experienced a slight uptick, rising from £47 million to £50.4 million.
However, Everton’s expenditure on the new stadium increased significantly to £207 million, compared to £20.3 million in the previous year. This rise in spending was due to the club officially breaking ground on the Bramley-Moore Dock site. Additionally, the club’s net debt position ballooned to £141.7 million, up from £58.2 million in FY21, as a result of investments made in the playing squad and the new stadium.
After the end of the financial year, majority shareholder Farhad Moshiri provided a further £70 million of financial support. The club describes this money as “shareholder investment” and is being utilized to fund the new stadium development and meet operational cashflow requirements. According to club sources, it will be up to Mr. Moshiri to decide whether the investment will be repaid in the future.
According to the club, the financial impact of the pandemic in terms of lost revenue and additional costs amounted to £90.4 million, spread across the 2020 (£67.3 million), 2021 (£14.8 million), and 2022 (£8.3 million) accounts. The club believes that further substantial losses have been incurred due to COVID-19, as indicated by independent third-party analysis.
Despite the pandemic-related challenges, Everton managed to generate £115.1 million in broadcast revenue. However, this figure represented a decline of £31.3 million compared to the previous year, owing to fewer fixtures being broadcast and the club’s lower league position, dropping from 10th to 16th.
Remarkably, Everton’s commercial revenue figures were achieved even as the club suspended all commercial sponsorship arrangements with Russian companies USM, Megafon, and Yota. Over a 10-year period between 2011/12 and 2021/22, the club’s total commercial revenue from sponsorship, advertising, merchandising, and other commercial activities grew from £10.9 million to £50.4 million, equating to a compounded annual growth rate of 16%.