LIVERPOOL, ENGLAND (AP) – English Premier League club Everton announced record losses of GBP140 million (USD185 million) on Friday after feeling a heavy financial impact from the pandemic.
The club’s deficit is considerably worse than a year ago when it posted a then-record loss of GBP111.8 million, albeit over a 13-month accounting period.
Everton said the cost of the disruption by the pandemic amounted to GBP67.3 million, with last season suspended for three months until June and then resuming in
empty stadiums. To help offset the losses, majority shareholder Farhad Moshiri injected another GBP50 million of his own funds during the financial year up to June 30 and has put in a further GBP50 million since then.
That took Moshiri’s investment in the northwest English club since assuming control in February 2016 to GBP400 million, with plans for a further GBP100 million to be injected.
The club is creating proposing a new share issue to Moshiri’s Blue Heaven Holdings up to a value of GBP250 million, with the conversion of previous shareholder loans into equity equating to GBP150 million of that total. That would potentially take his share in the club from 77.2 per cent to 93.3 per cent.
“Clearly this has been a very challenging year, not least from a financial perspective with the impact of COVID-19 having a profound, wide-reaching and material impact on our figures,” Everton Chief Executive Denise Barrett-Baxendale said. “Prior to the pandemic, we were forecasting record revenues in excess of GBP200 million. Our final accounts show that a significant proportion of our losses have been directly attributable to the pandemic.
“However, in this period, it is encouraging that our commercial performance has improved markedly, and this will continue to be a priority moving forward.”
Due to Moshiri’s continued investment, net debt was reduced to GBP2.3 million from GBP9.2 million in 2018-19, while the club’s sponsorship, advertising and merchandising revenue of GBP64 million was more than double the previous year’s total of GBP29 million.
There was a GBP113 million investment in the squad during the 2019-20 financial year, with a further GBP70 million since then. The payoff to former manager Marco Silva and his backroom team last December amounted to GBP6.6 million.