Everton report record revenues in latest accounts

Tuesday, 18 December, 2018 34comments  |  Jump to last
Everton have announced a second consecutive year of record revenues totalling £189m although increased costs resulted in a net loss of £13.1m for the year ending in May 2018.

The combination of increased commercial revenue and gate receipts meant that the club has posted a 10% increase in turnover on last year but the overall operating loss was around £22m.

Commercial revenue from sponsorship, advertising and merchandising grew by 34 per cent from the previous year to a record £20.7m thanks to the SportPesa partnership, the sleeve sponsor partnership with Rovio for Angry Birds and a growing portfolio of other commercial arrangements.

Driven by a record 31,282 season tickets, the average attendance at Goodison Park of 38,797 continues to be close to capacity with every home seat sold for every Premier League match in the 2017-18 season.

Over £14m in exceptional costs for the year were attributed to severance payments to former employees of the Ronald Koeman and Sam Allardyce regimes and "other costs in relation to the change in coaching staff."

Wages have also increased from £105m to £145m but the club showed an overall profit on transfer dealings, thanks largely to the sale of Romelu Lukaku to Manchester United for an initial fee of £75m.

The accounts also show that majority shareholder Farhad Moshiri has injected another £100m in interest-free loans into the club, taking his additional investment to £250m.

Everton Chief Executive Officer, Denise Barrett-Baxendale, said: “For the second consecutive year the club has generated record revenue.

"Gate receipts, sponsorship and other commercial income increased significantly by 45 per cent and the continued and quite magnificent support of our fans meant that season tickets reached the cap with more than 10,000 on a waiting list.

"This commercial growth demonstrates our progress and we have a vision for the club that is shared on and off the pitch by our Majority Shareholder, Chairman, our Board of Directors, the Everton Leadership Team, our Director of Football and Manager.”

The Annual General Meeting for shareholders of Everton FC is set for 6pm on 8 January 2019 at the Liverpool Philharmonic Hall.

 

Reader Comments (34)

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John Keating
1 Posted 18/12/2018 at 12:46:16
Can't fault Moshiri — another £100M pumped into the Club.
Jay Wood
[BRZ]

2 Posted 18/12/2018 at 13:52:46
James @ 59.

Everton reporting record revenues for the second year running and the Echo reporting on top of the £150 million Moshiri pumped into the club (as equity), he has added another 100 million squids.

Link

The club website possibly has a more thorough breakdown of the revenue numbers.

Link

This extract makes particularly interesting reading:

'The Club incurred £34m exceptional costs in 2018, not present in 2017, £14.4m of which related to settlement costs for the termination of former employees and other costs in relation to the change in coaching staff in the year. '

The price of sacking Koeman, Allardyce and their staff.

Also noteworthy: ' the Club’s total wage to turnover ratio has risen from 61 per cent in 2017 to 77 per cent in 2018 (this figure would be 73 per cent with outsourced operations in retail and catering taken into account).'

Jamie Crowley
3 Posted 18/12/2018 at 14:08:00
Frightening. Anything north of 70% wage to turnover is a road to bankruptcy. Or administration as I believe it's called in the UK. Of course, if we had record profits and Moshiri just pumped £100 million into the coffers, you can afford to pay more in wages, nicking into that rather large number.

Surely and hopefully the wage to turnover percentage decreases when we remove all the deadweight still on the books who are all out on loan. Surely we are picking up a large, large portion of the salaries from the host of players still on the books?

Brian Williams
4 Posted 18/12/2018 at 14:38:32
There are some interesting figures floating about today. Those figures being that we have 31,282 season ticket holders and over 10,000 on the waiting list for season tickets.

I'd love to know how much over 10,000 though I'm guessing not much otherwise the quote would have been "over 15.000" or whatever. Needless to say that's a very healthy number of Evertonians wanting to watch each and every home game.

So, without the allure of Bramley-Moore Dock and all that goes with it, we "could" at the moment be getting attendances of circa 42,000 which is nothing to be sniffed at! I'd expect 50,000 in a new stadium at the very least.

Joe McMahon
5 Posted 18/12/2018 at 15:11:05
Just imagine if we hadn't made those Koeman disaster signings also, not to mention the wages. We can easily fill a 60k stadium though, 50k capacity would be putting ourselves down.
Dean Johnson
6 Posted 18/12/2018 at 15:23:25
Aye, if you play good football, everyone will come to watch.

Fair-weather supporters get a bad rep but I think they serve a purpose. They return when it's worth paying to watch a game again.

Now I have maximum respect for everyone that pays to go to every game but personally until I get value for money, I ain't going back. It's starting under Marco and Marcel but we've still got some way to go, plus we've got to build the place to house them all.

Onwards and upwards.

Christy Ring
7 Posted 18/12/2018 at 15:24:03
It shows Moshiri's ambition and commitment by pumping £250m into the club. I know you can say it's a loan, but thankfully it shows he's here long term, and the new stadium can become a reality.
Derek Knox
8 Posted 18/12/2018 at 17:14:11
Joe @4, a point many of us have made several times, but unfortunately it's got to be seen as water under the bridge, and hopefully lessons to be learnt from in the future.

Dean @5 you make a very valid point in my opinion regarding unconditional loyal support (from so many, home and away) against the entertainment value. At the end of the day, entertainment must play a major part, in giving fans value for money. Nobody expects us to win every game, (but hopes that we do) but if they have gone down fighting, created chances, and been thwarted by bad luck, bad refereeing or just that they had been outplayed a better side, it is acceptable.

Christy @6, yes it is encouraging that Moshiri is making money available in whatever form that takes, we as fans just hope it is spent wisely, although there are no guarantees that a new player will prove his compatibility or worth.

Les Moorcroft
9 Posted 18/12/2018 at 17:28:09
It shows build it and they will come. COYB.
Colin Glassar
10 Posted 18/12/2018 at 17:30:27
I've always argued for performance related contracts ie if you're a complete failure your contract should be terminated without being paid the entirety of said contract. That should go for both players, managers and, if possible, agents!

Football is awash with cash but it's also full of overpaid, underperforming chancers who, in some cases, should be prosecuted for fraud. If they knew they weren't going to get a golden handshake they might try a bit harder or get out of the game all together.

£14m for Koeman and Sam is a disgrace (didn't Martinez get about £11m?) and no worker would get a huge payment for being shite, would they?

ps: While I'm here, I no longer go on TW like I used to as every time I go onto another site I have to sign back in (log on) when I return. Any suggestions to fix this? It's a pain in the arse.

Lawrence Green
11 Posted 18/12/2018 at 17:40:54
Colin #6,

It has something to do with your browser settings, I choose to log in and out of various sites but if the browser has been set to remember history or similar then the log-in processs isn't required. Hope that helps! :)

Steavey Buckley
12 Posted 18/12/2018 at 18:00:53
Everton's financial losses would be bearable if previous managers had not spent money unwisely, because the present Everton bulging squad still needs strengthening, because other clubs are not prepared to buy Everton players, but loan them out instead.
Derek Knox
14 Posted 18/12/2018 at 18:03:34
Hi Colin, I couldn't agree with you more regarding contracts and wages, it is just verging on the ridiculous at times, and a massive drain on resources. Like you so succinctly said, a player can be on these massive contracts and not even play.

Wondered why you hadn't been on as often as you used to be, but on my System, Windows 10, there is a box you can tick, "stay logged in" (which I do) and I only have to resign in once a month, you should also be able to save your sign in information, so you just click and you have re-signed in. Hope that helped.

Colin Glassar
15 Posted 18/12/2018 at 18:05:25
Cheers Lawrence. This is the only site I was permanently logged onto, for convenience. About a month ago, it suddenly started logging me off every time I opened another site.
Kevin Prytherch
16 Posted 18/12/2018 at 18:46:40
Rooney, Klaassen, Schneiderlin, Williams, Martina, Niasse, Sandro...

I bet there's £20 - £25 million of wages there that have either gone, or need to be gone.

Frightening how much of an effect poor recruitment can have on the accounts.

STU SMITH
17 Posted 18/12/2018 at 18:55:26
Directors seem to be getting a lot?
Brent Stephens
18 Posted 18/12/2018 at 19:01:57
Colin, re log-in issues. Are Michael and Lyndon trying to tell you something?
Derek Knox
19 Posted 18/12/2018 at 19:06:12
Nice one Brent, come to think of it, you haven't been on as often of late, so are you talking from personal experience? :-)
Denis Richardson
20 Posted 18/12/2018 at 19:11:46
Taken on their own the accounts are not great given the large player transfer profits from Lukaku, Barkley etc will have mostly gone this season and we're not in Europe. Also wages going from £105m to £145m is scary, especially as this doesn't include any of this seasons signings...

However, accounts are a bit academic when you have a 'sugar daddy' willing to pump £250m odd into the club. How times have changed from Kenwright looking down the back of the sofa.

Looking forward to a new striker, right back and stadium. Hoping we can get all three in before the Sky goose stops laying the golden eggs.

Brent Stephens
21 Posted 18/12/2018 at 19:17:19
Haha, Derek. No. I’m just torn between enjoying TW on the one hand and having a good laugh at the Brexit shenanigans! My ribs hurt!
Kieran Kinsella
22 Posted 18/12/2018 at 19:19:34
Brands said last summer we have to cut the wage bill. Even though we have players out on loan, you can bet we are still paying the lions share of say Sandros salary. We had Rooney last year also on a massive wage. if we shift some of the deadwood permanently, that 70% ratio will drop.
Derek Knox
23 Posted 18/12/2018 at 19:25:53
Brent, that's what I love about the democracy in this country, they have a vote, then they decide after playing keepy-uppy for far too long, let's do the democratic thing and then possibly have another vote!
Brent Stephens
24 Posted 18/12/2018 at 19:40:00
Don't get me going, Derek! I'm trying to explain the Condorcet Paradox to my wife who is wondering who is going to win through: hard Brexit, May's Brexit or no Brexit.

Coming dear!

Dennis Stevens
25 Posted 18/12/2018 at 19:45:12
Aye, as Ken Livingstone wrote, "If voting changed anything – they'd abolish it!"
Colin Glassar
26 Posted 18/12/2018 at 20:07:38
The thought had crossed my mind, Brent.
Derek Knox
27 Posted 18/12/2018 at 20:17:56
Brent and Dennis,

"Politics is the last refuge of a scoundrel"* so we have 650 elected ones in this country at least! Many more in the wings ready to usurp and occupy.

* Adapted by George Bernard Shaw as a parody on Samuel Johnson's "Patriotism is the last refuge of a Scoundrel".

Brent Stephens
28 Posted 18/12/2018 at 20:28:03
Derek, nah, TW is their / our last refuge – you scoundrel, you.
John McFarlane Snr
29 Posted 18/12/2018 at 21:06:47
Hi Dean [5], a slight flaw in your view that supporters will return when a match is worth watching, is that games take place once and once only and performances fluctuate. How many times have so-called classic encounters failed to live up to the hype?

From the viewpoint of a 'seasoned' season ticket holder, I attend games with an open mind knowing that anything can happen in a game of football, and a match can only be assessed after the final whistle.

I may be misreading your post but you seem to be pre-judging performances – a rare gift indeed, and my definition of a loyal supporter is one who supports through thick and thin, expecting, but not demanding value for money.

I am perfectly content to be in a minority of one. I suppose that as someone who would rather see Everton lose, than not see them at all, it may be seen by others as slightly eccentric. On reflection, if I was only interested in results, I could relinquish my season ticket and buy the 'Echo' – it's full of results, thus saving a considerable amount of money.

David Pearl
30 Posted 18/12/2018 at 21:19:16
I'm just wondering if Moshiri could lend me a few quid. Or maybe hire me as manager for 20 minutes and then pay me off.

I could do two pressers. One saying how proud I am to take over and then immediately do the other saying l wish the club well blah blah.. then wait for the cheque.

And I got £27:50 a week. Jesus. Erm oh well. I'd never hit the front man off a corner twice in a row. That's never

David Pearl
31 Posted 18/12/2018 at 21:47:49
Well, I've just seen the most embarrassing set of penalties in my life.
Jason Wilkinson
32 Posted 18/12/2018 at 23:53:00
Dean,

The most embarrassing penalties were missed by the FA against Man City for FFP.

I think hiring Ricky Gervais to read them out would be fucking hilarious.

Bill Watson
33 Posted 19/12/2018 at 00:40:03
Interesting that, in addition to the maximum allowed season ticket sales of around 32,000, we have a waiting list of over 10,000.

Maybe not all of those 10,000 would or could buy a season ticket if offered the chance but it gives a possible ballpark figure, as it now stands, of around 40,000 season ticket holders when we move to Bramley-Moore Dock.

I think a club must leave around 20% of capacity free for away supporters and casual sales. So, a capacity of 55,000 would limit season ticket sales to around 44,000 which, given a half decent side, would probably be insufficient.

If we could sell around 40,000 season tickets now, with an outdated stadium with poor transport links and for the last couple of seasons, dire management, then a world-class stadium with no restricted views, excellent facilities and much better transport links would surely increase this figure to nearer the 48,000, or so, allowed with a 60,000 capacity.

Derek Knox
34 Posted 19/12/2018 at 01:00:11
Bill, a very valid point regarding the size of the Stadium, in relation to current demand for season tickets, which, as you allude to, would most probably increase in a state-of-the-art stadium.

I know it obviously impacts on the budget, but I believe in getting the biggest that is possible, in the area designated. Let's face it if it was built with a limited capacity, then demand and hopefully success dictated that it should have been bigger; it's a bit late in the day to do much about it.

Also, when the Stadium is not in use by ourselves it could generate a profit with other activities, pop concerts, etc; a no-brainer, in my eyes, to go max from the off.

Mark Andersson
35 Posted 19/12/2018 at 05:24:33
I have never understood why football managers get paid to leave... Surely the owners should negotiate contracts to favour the employee if the candidate fails in his contract?

Only in football does this madness happen...

I hear Marco is on the shortlist for the Man Utd gig.

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