Everton Announces Further Financial Losses

English Premier League’s, Everton have revealed their financial net losses have increased to £9.1m from £5.5m in the 2011-12 season.

The wage bill, up from £58m to £63m, accounted for 75% of the overall turnover, according to the club’s accounts released today. 

Turnover was slightly down on the previous year – £80.5m from £82m – mainly due to four fewer games being picked for live TV and a fall in both gate receipts and Season Ticket numbers. All revenue contributors have since shown encouraging signs of recovery in the current financial year with Season Ticket sales up by 6.4% on the 2011/12 season and, most recently, the sale of over 1,000 Half Season tickets.

Sponsorship revenue showed encouraging signs of growth – up to £7.1m from £6.8m. Further new partnership agreements made with kit supplier Nike and secondary ticketing marketplace StubHub do not fall into 2011/12 financial year.

The continual search for operational efficiencies delivered cost savings and resulted in other operating expenses (including running Goodison Park, and the Finch Farm Academy and Training Complex) falling for the second successive season to £22.7m [2010/11 – £23.6m].

Chief executive Robert Elstone said: “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.

“I’m also delighted to report, those on-field performances, boosted by new signings in the summer, have made a considerable impact on the current season. 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 reaffirmed that the search for new investment at Everton continues, adding: “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. 

“My commitment to serve this football club to the very best of my ability remains a constant in my life and I am aware of the trust you put in me to do that.”