Transfers and wages push up Everton’s losses
TRANSFER spending on new players and improved contracts for existing squad members pushed Everton FC’s wage bill up 9%, contributing to a higher annual loss of £9.1m (£5.4m in 2011).
Turnover at the Premier League club – which continues to seek fresh investment – was down from last year’s record £82m at £80.5m as a result of falls in broadcast revenues and matchday income.
Everton said its wage bill had risen 9% to an all-time high of £63.4m
and accounting for 75% of turnover, up from 67% last year.
During the period under review Nikica Jelavic, Darron Gibson, Steven Pienaar and Landon Donovan joined the club and established stars including Marouane Fellaini and Tim Howard, signed new deals.
Net debt was largely unchanged at £46m.
Chief executive Robert Elstone told the official website: “The club has demonstrated its commitment to first team success with increased expenditure on player wages.
“We continue to try to enhance our competitive position and, at the same time, manage cost base and debt levels effectively. To get through a challenging year with only minimal increases in overall debt whilst at the same time, based on the opinions of many experts, strengthening our first-team squad is testament to the skill, hard work and commitment of the manager, the chairman and all their support teams.
“Buoyed by excellent Season Ticket sales, which have been lifted further by record Half Season ticket sales and new commercial partnerships with StubHub and Nike, the Club’s turnover projections for 2012/13 are healthy. We continue to demonstrate on-field ambition, whilst at all times maintaining a close eye on our entire cost base.”
Everton chairman Bill Kenwright added: “My desire to find a person, or institution, with the finance to move us forward has not diminished. Despite the challenges presented by a global economic downturn, we remain positive and determined.”
