Everton blames bigger financial losses on COVID and depressed transfer market

Everton FC has posted a £120.9m loss for the year to June 30, 2021, despite setting a new record for revenues, of £193.1m.

The latest poor result follows losses of £111.8m in 2020, when revenues were £187.7m.

However, the Blues, which currently perilously sit just three points above the Premier League relegation places, said the club remains “in a secure financial position thanks to the continued unwavering support and commitment of Farhad Moshiri, the majority shareholder, and cost control measures continuously adopted by the club”.

Everton blamed its loss for the year on the “ongoing” financial impact of the COVID-19 pandemic, which it said has been responsible for losses of at least £170m following the closure of grounds due to lockdown measures that significantly affected match day revenues with no fans allowed in the ground.

Gate receipts of just £0.2m were generated for the season, with virtually the entire campaign played without fans in attendance at Goodison Park.

Everton also bemoaned the impact of COVID-19 on the transfer market, which it said caused a “significant contraction”, resulting in the inability to generate the kind of transfer fees which could normally have been expected prior to the pandemic.

The club is currently involved in building a new stadium, on the Liverpool waterfront, which is estimated will cost £505m, and should be ready by 2024.

It said it has been working closely with the Premier League over its compliance with profitability and sustainability regulations, otherwise known as financial fair play rules.

Mr Moshiri, who bought the club in 2016, has, so far, invested more than £500m in Everton.

In December, 2020, he announced he would inject £250m into the business through the issue of new shares.

And, for the current financial year, he revealed in January this year that he had acquired an extra 33,333 shares, worth £100m.

The club said the deal represents the capitalisation of previous loans made by Mr Moshiri – “greatly strengthening the balance sheet.”

Announcing the latest financial figures, Everton 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.”