Everton to announce record losses at AGM today

After delaying by a few days more than normal, Everton will hold their Annual General Meeting (AGM) today to announce the financial results from the calendar year 2019.

The Toffees are expected to state losses of a magnitude previously unheard of, especially since television money started flooding into the Premier League.

Per the Telegraph a few days ago -

... Everton have suffered huge deficits — spending an estimated £450M on players since Farhad Moshiri bought a 49.9% stake in the club in February 2016. Total player costs, including wages and transfer fees since Moshiri acquired effective control, had already doubled from £106M in 2015-16 to £212M in 2017-18.

The club recorded net debts of £66M, down from a net cash position of £9.6M in 2016-17. Over the same period, the club made a pre-tax loss of £13M compared with a profit of £30M a year earlier.

Everton already have the second highest wages-to-income costs in the Premier League, above Uefa’s 70 per cent spending “red line”, and have been unable to offset them by qualifying for Europe, which generated up to £40 million a season for the likes of Chelsea and Arsenal.

While Everton are expected to reduce some of those losses for Financial Fair Play (FFP) benefit by claiming them for stadium development for the new arena being built at the Bramley-Moore docks, they will be getting close to the £15m loss rolling mark for a three year period - this can be extended to £105m if the owner puts in equity investments of £30 million a year, something that Moshiri has been utilizing so far.

The 2020 AGM will be held today at 6pm in the Philharmonic Hall, and we can expect to hear from that including interviews with the top brass on the Everton website and social media channels.

Deloitte

Meanwhile, accounting organization Deloitte announced their top twenty clubs in the world in the annual Football Money League rankings, with Everton dropping two spots to 19th despite not really increasing their earnings. The Money League is considered to be the most contemporary and reliable independent analysis of football clubs’ relative financial performance.

Failing to qualify for Europe has hurt Everton’s overall income, and doesn’t help the overall financial picture which will be much clearer this evening after the AGM. Of all the clubs in the Money League, the Blues are most dependent on television revenue and with this season going the way it is, it’s very unlikely the Blues will even be in the top twenty next season.