Everton Football Club reports pre-tax losses of £35.6m for 2021/22 and says COVID cost the club £180m – but it insists it is in a ‘secure financial position’. Tony McDonough reports

Everton FC is reporting an annual pre-tax loss of £35.6m – a significant improvement on the £120.9m loss reported for the previous year.

Publicising its accounts for the 12 months to June 30, 2022, Everton said its turnover hit £181m, down on the record £193.1 posted last year. It said the total cost of the COVID pandemic over four accounting periods was just over £180m.

This is £10m above its original forecast. Everton is well advanced on building its new stadium at Bramley-Moore Dock in Liverpool Waters which is now likely to cost more than the £500m headline figure.

For the second season running the club finds itself in the midst of a relegation battle. Earlier this season Sean Dacha replaced Frank Lampard as first team coach.

Despite the losses, and the precarious position in the Premier League, the club offered a statement saying its finances are secure thanks to the support of majority shareholder Farhad Moshiri.

It reads: “Despite the substantial financial impact of several unexpected and unprecedented factors in recent seasons, the club remains in a secure financial position thanks to the continued support and commitment of our majority shareholder.

“In the post year end period, the majority shareholder has provided a further £70m of financial support to the club.”

Other key points in the report and accounts include:

• The generation of £67.7m of profit on player trading transactions, a five-fold increase of £54.5m from the prior year player trading profit of £13.2m.
• Total commercial revenue from sponsorship, advertising and merchandising and other commercial activities growing by £3.8m to £50.4m.
• Broadcast revenue falling from £146.4m in 2020/21 to £115.1 in 2022. The previous year’s broadcast numbers were inflated due to the COVID-impacted 2019/20 campaign being completed within its financial reporting period.

Broadcast revenue was also impacted by the fall in the club’s Premier League finishing position (10th in 2020/21 to 16th in 2021/22) and by two fewer games being selected for live television broadcast.

Gate receipts returned to more typical figures in 2021/22 with all games played in front of supporters, unlike the previous year due to COVID-19 restrictions.- relating to the infilling of Bramley-Moore Dock, enabling works, and above-ground construction commencing on all four sides of the stadium.

Chief executive Denise Barrett-Baxendale said: “The 2021/22 season was a challenging period for everyone at Everton Football Club on and off the field.

But these accounts demonstrate that, just as we ended a difficult Premier League campaign with our status secure, the club’s financial position was also brighter.

“We recorded a turnover figure of £181m despite the suspension of all commercial sponsorship arrangements with Russian companies.

“We also significantly reduced our losses and made rapid progress on the development of our new Everton Stadium.

“The club’s net debt position has increased to £141.7m, due to investment in the playing squad and significant investment in the Everton Stadium project.

“The construction of our new home remains on schedule and on budget – something we can all be justifiably proud of.”