Thursday, September 23

Everton Makes £ 139.9 Million Annual Loss As Covid-19 Takes Its Toll | Football


Everton suffered a staggering £ 139.9 million loss in fiscal 2019-20 – £ 67.3 million as a result of Covid-19’s impact on football – and has proposed a new share issue to majority shareholder, Farhad Moshiri , worth £ 250 million to cover the club’s ongoing losses.

Moshiri has so far invested 400 million pounds in Everton, including a further injection of 50 million pounds last month, and plans to further demonstrate its financial commitment through a share issue representing an additional investment of 250 million pounds. pounds. Depending on the agreed terms, the £ 250 million will include the conversion of Moshiri’s previous loans into equity and an estimated £ 50 million of new cash this season. The billionaire’s equity stake will rise from 77.2% to more than 93% if the share issue proposal is accepted in full.

Everton’s net debt declined from 9.2 million pounds to 2.3 million pounds due to another 50 million from Moshiri and the club insists they remain on a secure financial footing and on track to build a new 500 stadium. million pounds at the Bramley Moore pier. The net loss includes £ 19.9 million spent on preparatory work for the new stadium but, until planning permission is obtained, the sum cannot be capitalized on the balance sheet. Other exceptional items include the £ 6.5 million cost of paying Marco Silva following his dismissal as manager last December.

The Premier League has estimated that clubs are suffering a collective loss of £ 100 million per month as a result of the pandemic and Everton’s streaming revenue alone decreased from £ 132.7 million in 2018-19 to £ 98 million.

This figure includes the bonus paid to broadcasters for the delay to the end of the season and the result of the postponement of some games until the new year. Everton also invested an additional £ 70 million in players under new manager Carlo Ancelotti for the 2020-21 season.

In the last three financial years, Everton has posted a combined losses of nearly £ 265 million (£ 139.9 million in 2019-20, £ 111.8 million in 2018-19 and £ 13.1 million in 2017-18). That violates the Premier League’s earnings and sustainability rules, allowing for a loss of £ 105 million over three years, although that’s a pre-Covid figure and restrictions have been relaxed as a result of the pandemic.

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Everton CEO Denise Barrett-Baxendale said: “Clearly this has been a very challenging year, especially from a financial perspective with the impact of Covid-19 having a profound, far-reaching and material impact on our numbers. Before the pandemic, we were forecasting record revenue of over £ 200 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 business performance has improved markedly, and this will continue to be a priority going forward. We have also continued our investment in our new stadium project, which continues to advance in line with our project plan, and, more importantly, in strengthening our administration and gaming staff through the arrival of Carlo Ancelotti and some key additions to our first team. team.

“These strategically important projects have been enabled by our majority shareholder, who has further underscored their commitment to additional investments in the club, in 2019-20 and in this financial year.”


www.theguardian.com

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