The dramatic and ongoing financial impact of the COVID-19 pandemic is evident in the annual accounts published today by Everton for the 2020/21 season.
Losses of at least £170m are attributed to the impact on the Club of the COVID-19 pandemic, with £103m of that figure coming in the 2020/21 financial year. Continued investment in the playing squad, coupled with the impact of the pandemic, has resulted in the Club posting a loss of £120.9m for the year ending 30 June 2021.
The wide-ranging impact of COVID-19 on Everton - which further market analysis has indicated could include an additional £50m - covers lost revenues, additional costs due to strict COVID-19 playing protocols and a significant contraction in the transfer market which resulted in the inability to generate the level of transfer fees which could reasonably have been expected pre-pandemic.
Gate receipts of just £0.2m were generated for the season, with virtually the entire campaign played without fans in attendance at Goodison Park. Indeed, the only matchday revenue came from three Premier League matches and one Carabao Cup quarter-final which were able to be staged with a small number of fans present at the ground.
The Club can, however, report a record turnover of £193.1m and remains in a secure financial position thanks to the continued unwavering support and commitment of Farhad Moshiri, the Majority Shareholder, and cost control measures continuously adopted by the Club.
A Share issue was completed during 2020/21 that involved the introduction of £100m of new funds from the Club’s owner, with a further injection of £97m confirmed after the year’s end.
The Club has also been working formally with the Premier League regarding its ongoing compliance with Profitability & Sustainability regulations.
The Club has experienced a unique set of financial circumstances in recent years, including committing significant amounts of expenditure to a complex New Stadium project and dealing with the continuing and widespread impact of the COVID-19 pandemic, all whilst being in the initial stages of an investment lifecycle thanks to the support of its Majority Shareholder.