Everton FC has reported losses of at least £170 million which have been attributed to the impact on the club of COVID-19 restrictions, with £103 million of that figure coming in the 2020/21 financial year.
The Premier League side also stated that continued investment in the playing squad, along with the impact of the pandemic, has resulted in Everton posting a loss of £120.9 million for the year ending 30 June 2021.
A statement from the club explained: “The wide-ranging impact of COVID-19 on Everton – which further market analysis has indicated could include an additional £50 million – covers lost revenues, additional costs due to 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.
“Gate receipts of just £0.2m were generated for the season, with virtually the entire campaign played without fans in attendance at Goodison Park. Indeed, the only matchday revenue came from three Premier League matches and one Carabao Cup quarter-final which were able to be staged with a small number of fans present at the ground.”
However, the club did report what is being described as a ‘record turnover’ of £193.1 million and assured that it 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 Everton.
In 2020/21, a share issue was completed that involved the introduction of £100 million of new funds from the club’s owner, with a further injection of £97 million confirmed after the year’s end. The side has also been working with the Premier League regarding its ongoing compliance with Profitability & Sustainability regulations.
Overall, the club concluded that it had been faced with 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 impact of the global pandemic, whilst being in the initial stages of an investment lifecycle.