Leeds United's Premier League rivals Everton have published their accounts for the 2020/21 campaign and although the numbers make for grim reading for Toffees supporters, the club are reportedly confident of avoiding a points deduction. As outlined by the Liverpool Echo, Everton have posted losses of £120.9m for the most recent financial year, which when added to the £139.9m losses recorded for the previous year, takes the club past the £260m for the last financial two years.
That number is the highest in the Premier League for the last two financial years and paints a picture of challenges in the face of unprecedented circumstances. According to the Echo report, around £170m of the £260.8m lost over the last two financial years is directly attributed to the impact of the COVID-19 pandemic by the club.
Read more: Jesse Marsch faces prospect of breaking Marcelo Bielsa's Leeds United golden rule
The precarious league position currently held by Everton means a points deduction would have the potential to prove costly but according to the Liverpool Echo, there is a confidence behind the scenes that the club are in a comfortable state regarding financial fair play. As demonstrated by the plight of Derby County, failing to comply with financial fair play regulations can land clubs in hot water but senior officials at Everton are reportedly confident they are in a strong position.
Audits and checks are said to have taken place regularly and the Premier League are understood by the Echo to be happy with the numbers being submitted. Their wage bill at the end of the 2020/21 financial year accounted for 94.2% of their turnover despite the fact UEFA recommend a wage to turnover spend of 70%.
However, the likes of James Rodriguez, Lucas Digne, Bernard and Theo Walcott have departed during the current financial year and their exits will have removed chunks from the wage bill. As explained by the Echo, there has also been evidence of cost control regarding signings, as Demarai Gray was the only signing made during the summer of 2021 that required a fee.
The sale of Lucas Digne to Aston Villa then paved the way for Nathan Patterson and Vitalii Mykolenko to arrive, whilst Dele Alli joined on a structured deal which did not require immediate financial outlay and Donny van de Beek was brought in on loan. Leeds may not have to rely on sanctions on their rivals to retain their Premier League status but the three games in hand held by 17th-placed Everton means they have an excellent opportunity to leapfrog the Whites.
Fortunately for Jesse Marsch's side, Watford would still be four points behind them if they won their game in hand and Burnley have three extra games but need to close an eight-point gap.
We want to hear your thoughts, so LOG IN and leave your comment below
