Premier League football club Everton posted a loss of £44.7m (€50.8m/$55.2m) for the 2021-22 season despite generating a turnover of £181m, with work on its new stadium a major contributing factor.
The loss represents a significant reduction on the £120.9m loss posted in 2020-21, but means that Everton has now posted combined losses of more than £300m over the past three years.
Everton broke ground on its new stadium project at the very start of the 2021-22 accounting period, which the club said led to it incurring significant capital costs of £207m. The costs related to the infilling of Bramley-Moore Dock, enabling works, and above-ground construction commencing on all four sides of the stadium.
Everton confirmed that it is in advanced negotiations to secure the next stage of funding for the stadium development, with heads of terms having been agreed. The funding is expected to be signed off in the next couple of months.
Everton finished 16th in the Premier League last season and is currently 18th with 10 matches to play of the 2022-23 campaign. Its accounts have revealed that relegation would have a significant impact on the future of the club.
The club’s statement of accounts read: “The board are confident in the club’s ability to remain in the Premier League and that should they be relegated funding will be secured or refinanced and that they will be able to achieve the necessary levels of revenue and savings to allow the group to continue in operational existence for a period of 12 months after the date of signing these financial statements.
“However, whilst the directors acknowledge these uncertainties may cast significant doubt on the entity’s ability to continue as a going concern, they still feel it is appropriate to prepare the financial statements on a going concern basis.”
The club’s turnover in 2021-22 was boosted by £67.7m of profit on player trading transactions, with Richarlison, Lucas Digne and James Rodríguez among the players sold. Everton’s total commercial revenue from sponsorship, advertising and merchandising and other commercial activities grew by £3.8m to £50.4m.
Broadcast revenue fell from £146.4m in 2020-21 to £115.1m in 2022. Everton noted that the 2020-21 broadcast numbers were inflated due to the COVID-impacted 2019-20 campaign being completed within its financial reporting period.
Gate receipts also returned to typical figures in 2021-22 as fans returned following the easing of COVID-19 restrictions. Everton said the impact of COVID-19 remained significant in its 2021-22 results, with the pandemic contributing to combined crystallised losses of more than £90m.
The club’s net debt position increased to £141.7m as a result of investment in the playing squad and the stadium project. Operating expenses across the club decreased by five per cent from £215.1m to £204.9m.
Everton said that, despite the substantial financial impact of several “unexpected and unprecedented factors” in recent seasons, the club remains in a secure financial position. In the post-year end period, majority shareholder Farhad Moshiri has provided a further £70m of financial support to the club.