Everton could disappear if relegated
Everton’s financial problems seem to be getting worse by the day. An auditor’s report issued in March said the Merseyside club could face sanctions for breaching Financial Fair Play rules. Then news broke on Friday that the Toffees could even face a Premier League points deduction. Now inspectors claim that relegation would jeopardize the club’s functioning.
The Blues announced bad financial news on Friday. Their accounts showed a loss of about $55 million for the 2021/22 campaign. This was the club’s fifth consecutive season losing. In total, Everton have suffered $550 million in combined losses over the past five seasons.
Under the Premier League’s current financial rules, teams cannot lose more than $128 million over a three-year period. However, Everton have more than surpassed this total. Not only does the club risk fines and even point deductions, but relegation in the Premier League could put the club in really disastrous waters.
Auditors remain pessimistic as Everton try to calm nerves
Everton chief executive Denise Barrett-Baxendale has tried to appease supporters by claiming the Merseyside club is still in a safe position. She backed up these sentiments by praising owner Farhad Moshiri. Moshiri has provided an additional $86 million since the end of the last fiscal year. Yet accountants are not so optimistic.
“Should the club be relegated, it will need additional financial support from its majority shareholder,” said the club’s auditor. detailed in the report published Friday. “These matters indicate that a material uncertainty exists that may cast significant doubt on the group’s ability to continue its business operations.”
Budget cuts have hampered the team on the field
Everton have been cutting back for over a year. Employee pay was cut by approximately $25 million during this period. However, broadcasting revenues have fallen and total debt is rising due to the Bramley-Moore stadium project. The club’s position in the league table also affects the number of Everton matches broadcast live on television.
The Toffees are currently 15th in the Premier League but are just two points clear of the relegation zone. A possible points deduction could be the final nail in the team’s coffin. League officials expect a decision on Everton’s financial misdemeanours before the end of the current season.
Photo credit: IMAGO / Actie Plus
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