In a previous piece here on Royal Blue Mersey, Tom covered how Everton are currently paying for the sins of previous regimes with regards to spending in the transfer window, the massive expenditures across the last five campaigns having added up without a corresponding improvement in performance. Spending £500m since Farhad Moshiri purchased the club, while only moving up from 11th to 10th across that time, is no way to keep above the Financial Fair Play rules of UEFA, of which are reportedly close to being tweaked anyway, yet it’s not FFP that is currently hindering us so terribly.
The Premier League’s own ‘Profit and Sustainability Rules’ are specifically what is causing Everton to have spent only a combined £1.5m across three transfers this summer. In brief, clubs are allowed to rack up total losses of up to £105 million over three seasons. The Toffees currently stand anywhere from £30 to £60 million over that amount depending on what can be written off due to women’s and youth team development as well as new stadium expenditures.
Being in excess of the £105m in losses across this time period is actually unheard of, as in, it’s not happened in the Premier League as yet. While this data is usually collected from a span of the last five years, the pandemic has lead to minor rule tweaks; with the massive losses across this COVID-19 period, the financial problems at Everton appear looming and perhaps even constraining. This is all very likely the biggest reason why business has been scant despite the deep pockets of Moshiri and the sincere ambitions of Rafa Benitez.
While the club has managed to bring in talent in the way of Andros Townsend, Demarai Gray and veteran goalkeeper Asmir Begovic, with more waiting to be purchased when outgoing transfers happen, one cannot help but grimly smirk when one remembers the position Everton found itself in with just a month or two remaining in the last campaign. The fallout of that dismal finish is still playing out for the club in fact, and it will be interesting to see how our new boss navigates these struggles with the players he will end up with for this season.
The Final Folly of the Toffees under Carlo Ancelotti
Everton was not only within shouting distance of a top four position for a good portion of the entire season, but they were even near enough to theorize about the fifth and sixth positions on the league table with two months left. Even on the last day of the season, the Toffees still had a theoretical chance to snag the seventh position, which would have been good enough for a spot in the inaugural Europa Conference League competition for this year.
While it is easy to rationalize why it was positive that we did not qualify for the third tier European competition, I wrote about what the positives of earning the chance to play in Europe might offer the team and its players, as well as the boss and prospective transfers too, when it was still technically possible. In hindsight however, there is no denying that the string of results as the last season was waning not only disappointed and distressed the then-boss, but it also sealed our financial fate as it regards to tiptoeing the Profit and Sustainability rules.
Each participating club is guaranteed, for this inaugural season of the competition, €3m at the minimum, even if they are unable to make much progress; being in a European competition also means an expanded wage and transfer allotment which in this current circumstance would’ve been most useful. Money will also flow from jersey sales, ticket revenue and so on especially with stadiums allowed to be at full capacity again, while larger, additional incentives for winning, moving through stages and different achievements of that nature also exist, just as in the other European leagues of course.
That Everton was not able to be apart of this for this season is a shame for Toffees that wish to see their team playing as often as possible, yet when we look at those previously mentioned two months, it becomes less difficult to understand exactly why it all played out how it did.
Starting on the 5th of April, 2021, Everton managed just three victories out of the final ten matches of the Premier League season. They also only suffered three losses across this time, meaning that their 13 points out of the final ten matches left four games where one point was taken by each team. The loss and draw to Aston Villa were understandable, as the Lions were a good club last year and are poised to be even better this year, even without Jack Grealish.
No, the three matches that were most crucial remain both draws to Crystal Palace and Brighton & Hove Albion in back-to-back affairs, at the very start of the final two-month period, as well as the loss in the waning weeks to the soon-to-be-relegated Sheffield United. These were the largest killers out of any of the results, and had even two had gone differently, three more points each, would have put the Toffees in a position where they could still make it into the Conference League, while beneath West Ham United based on goal differential alone; the final, shocking blowout loss to Manchester City might not have been as consequential as it ended up being for the coaching staff had all of this transpired in the weeks leading up to it.
Nine points out of those aforementioned matches on the other hand, would’ve seen Everton finish the season in a qualifying position for the European second tier Europa League instead. The money, revenue, funding, roster rules and the like would have benefited the Blues even further, and might have, potentially, been enough to retain the old boss for at least another year. While that last bit is speculation, it should not be so unreasonable to suspect that those incentives, greater spending money, European competition and better players, might have given Ancelotti greater reason to remain on Merseyside than he ultimately had when Madrid came calling.
A good summer might get better with some financial wizardry
Fast-forwarding back to this current time and place, the new boss Rafa Benitez is doing his best to work with those players he's brought in, those players who have been with the club, and even Moise Kean, fresh from his loan with PSG in France. He has some names that he still would like to sell reportedly, with James Rodriguez, Fabian Delph and Andre Gomes on top of that list. There are also some that he would still very much like to purchase, like right back and team captain Denzel Dumfries of PSV Eindhoven, as well as young Sporting Lisbon midfielder, Matheus Nunes, and another wide player with Dwight McNeil linked.
While keeping Moise Kean instead of selling him has became the presumptive plan for Everton, he could be like a new forward signing in what he can bring to the club if utilized properly, in addition to the Dumfries and Nunes.
As always, patience will be necessary. The responses from the fanbase yesterday on social media following the Toffees 4-0 beating at Manchester United in their final preseason friendly of the summer shows that Benitez will get even shorter shrift than Ancelotti did despite him not getting any backing in the transfer window from the Board.