Everton recorded a loss of just under £121m for the 2020/21 season, the club has revealed.
Its latest set of accounts laid bare the devastating impact of Coronavirus during a campaign in which Goodison Park hosted fans just four times. A “significant contraction” in the transfer market was also blamed for the figures.
A record turnover was posted against the backdrop of the pandemic, however. And club bosses today sought to reassure supporters that Everton remains “in a secure financial position”.
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The brutal cost of Covid-19 was detailed as Everton published its annual accounts on Tuesday evening. Describing the pandemic as having a “dramatic and ongoing financial impact”, the club attributed £103m of losses in the 12 months to June 30, 2021 to the global health crisis.
The season covered by the accounts, which show an overall loss of £120.9m, was largely played behind closed doors, with the Blues hosting supporters at Goodison Park for only three Premier League fixtures and the Carabao Cup quarter-final defeat to Manchester United. Just £200,000 in gate receipts was generated by those games, Everton said.
It also cited the impact of “strict Covid-19 playing protocols and a significant contraction in the transfer market which resulted in the inability to generate the level of transfer fees which could reasonably have been expected pre-pandemic”.
Squad investment was another factor, the club added. Carlo Ancelotti’s summer 2020 signings - including Abdoulaye Doucoure, Allan and James Rodriguez - are among those to feature within the 12 months the accounts cover.
The new figures come off the back of record club losses of £139.9m posted in the 2019/20 accounts. A £67m loss was attributed to Covid-19 in that financial overview.
Recent speculation over finances had led to claims Everton could breach profit and sustainability requirements, opening the club up to action that could go so far as a points deduction. The club has been working with the Premier League for months in relation to those regulations and the ECHO understands it is highly confident no rules have been breached.
Against the multi-million pound losses, Everton reported a record turnover of £193.1m. A statement released by Everton said the club is in a “secure financial position” thanks to cost-control measures and “the continued unwavering support and commitment of Farhad Moshiri, the majority shareholder”.
It stated a share issue had been completed during 2020/21 that involved the introduction of £100m of new funds from the club’s owner. A further £97m injection of funds was confirmed for the 2021/22 financial period.
The accounts were published after the club declared a "huge milestone" had been reached at Bramley-Moore Dock with the installation of the fourth corner of the Blues’ future home. The first precast concrete wall has also been lowered into place in the south east corner of the site, highlighting the sheer size of the project.
A club spokesman today said: "The club has experienced a unique set of financial circumstances in recent years, including committing significant amounts of expenditure to a complex new stadium project and dealing with the continuing and widespread impact of the Covid-19 pandemic, all whilst being in the initial stages of an investment lifecycle thanks to the support of its majority shareholder."
