Everton FC has posted another financial loss after already suffering a points deduction
Featured image credit: Goodison Park by Graham Hogg/CC BY-SA 2.0
Everton Football Club has recorded a loss of £89.1m ($112m/€104m) for the 2022-23 season as well as a turnover of £172.2m which is a fall of £8.9m compared to the previous 12 months.
The Premier League club – currently constructing its new £500m stadium – said the main reason for the decline was the indefinite suspension of key commercial partnerships worth more than £20m.
While turnover was down slightly, the club’s loss was double that reported in 2021-22.
“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,” read a club statement.
“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 and total broadcast revenue rose by £0.9m due to an uplift in the league’s international merit prize money per place.
The release of the accounts, which included heavy costs of £210.9m into a new stadium, does not bode well at a time when the club’s finances are under scrutiny. This leaves the club’s net debt increased to £330.6m.
Before April 8, Everton is due to find out the verdict of a second charge of breaching the Premier League’s profitability and sustainability rules.
A further points deduction is a possibility in addition to the six they have already lost for breaches related to the 2021-22 season.
Everton posted a loss of £44.7m for that campaign despite generating a turnover of £181m, as work on the new stadium also took a considerable financial toll.
More than half of the 52,888 seats have now been fitted at the new stadium, which is due to open by the end of 2024 and is costing at least £500m to develop
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