Everton post £45 million loss amid financial breach investigation

Everton post £45 million loss amid financial breach investigation

updated at April 12, 2023 at 8:29 PM
Everton owner Farhad Moshiri
Everton owner Farhad Moshiri. Photo: Paul ELLIS / AFP/File
Source: AFP

Everton's financial results for the 2021/22 season revealed a £44.7 million ($55.2 million) loss on Friday with the club already under scrutiny for alleged breaches of financial rules.

The Merseyside club were referred by the Premier League last week to an independent commission of the league's profitability and sustainability rules for the period ending with the 2021/22 season.

The regulations allow clubs to lose a maximum £105 million over a three-year period or face penalties, which can include points deductions.

But clubs were allowed to discount losses caused by the coronavirus pandemic with Everton claiming that player trading was affected by the crisis as well as matchday income.

Everton's losses for the three years prior to last season were £371.8 million.

Burnley, relegated from English football's top flight last season, and Leeds wrote to the Premier League in May to question how Everton had stayed within the rules as they avoided relegation by just four points.

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The Toffees' 69-year stay in the top division is again at risk this season as they sit just two points above the relegation zone.

A points deduction could sink their survival bid and the Daily Mail reported on Friday that a ruling could be reached before the end of the season.

Everton have strongly denied the accusation of non-compliance with the rules.

"The club is confident it remains compliant with all of the Premier League's financial rules and regulations and has always provided information to them in an open and transparent manner," said chairman Bill Kenwright in the club's annual report.

Everton did at least manage to cut losses by £76 million last season, aided by the sale of Brazilian international Richarlison to Tottenham for £60 million.

Net debt rose to £141.7 million due to investment in the playing squad and costs associated with the club's new stadium build at Bramley-Moore Dock.

Since the financial year end owner Farhad Moshiri has provided an additional £70 million of financial support to be used for further stadium development and operational cashflow requirements.

AFP photo