Losses rise at Everton despite record turnover

EVERTON FC saw turnover hit a record £82m in the year to the end of May 2011, but losses climbed from £3m to £5.4m, newly-filed accounts reveal.

A 2% rise in wage costs as a percentage of turnover to 71%, drove the increase in the club’s out-goings from £96.7m to £99.1m, although net debt was maintained at £44.9m.

Wage costs, including social security and pension payments, rose from £54.3m to £58m after a number of players including England defender Phil Jagielka and rising star Jack Rodwell were tied to new contracts during the year.

In his report chairman Bill Kenwright expressed his frustration at the lack of suitable new investors or owners on the horizon.  He said: “Once again, try as I might, I was unable to accomplish the task which has dominated my life for these past few years – finding the man or the institution, with the finances to move us forward.

“Hopefully the day will come soon when I will happily – even enthusiastically – hand over control of our beloved club to a substantially wealthy individual or well-funded investment group.”

Everton’s lack of activity in the transfer market – has caused some frustration among supporters – but Kenwright said until there is a “substantial injection of funds” the club must live within its means.

Until this becomes a reality he said the board “cannot and will not do anything which may cause short or long term damage to our club.”

Of the club’s debt – £20m is repayable after five years – and relates to a secularisation deal on ticket revenues. Interest charges were £4.1m compared with £4.5m in 2010.

The 3.7% rise in turnover was driven by broadcast revenues which jumped from £50.1m to £52.8m. Gate receipts were down though, as a result of not being in European competition, from, £19.2m in 2010 to £17.48m.