Everton Report & Accounts – Wholly dependent on Moshiri’s financial support

Initial thoughts on the publication of Everton's 2020-21 accounts which reveal a heavy reliance on Farhad Moshiri

Paul The Esk 29/03/2022 86comments  |  Jump to last

First things first, delaying the publication of reports signed off on 29 October 2021 for a full 5 months is totally unacceptable from a transparency and accountability perspective. I am aware the directors were within their legal rights to delay publication up to 31 March 2022, but to what benefit?

To what purpose does this serve the club, build relationships and trust with minority shareholders, fans and commercial partners?

Along with the abolition of the requirement to hold Annual General Meetings for shareholders, it is another example of the tone-deaf manner in which this club – the purported “People’s Club” – is run.

On to the accounts themselves, bearing in mind that this reflects events 21 to 9 months ago, thereby not including the significant events of last summer.

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Given the nature of the previous year’s losses, £138.9 million in 2019-20 & £111.8 million in 2018-19 and the anticipated losses for 2020-21, it is reasonable to examine in the first instance, the director’s comments re the business being a going concern.

The business is totally dependent upon Moshiri’s financial support

The impact of Covid, the loss of income combined with the continued increase in costs plus the additional financial commitments for the new stadium at Bramley-Moore Dock, means that the club is wholly dependent upon Moshiri’s willingness and ability to keep funding.

Moshiri has had to commit another £242 million, £97 million of which was provided in the period 2020-21, and a further commitment of £145 million to be drawn down when required in this financial year.

Assuming all is drawn down in this financial year, that takes Moshiri’s financial commitment to £592 million since his arrival in 2016 (before taking into account his share purchases from previous shareholders). Does it reflect ambition? Yes. Does it reflect the appalling manner in which the club has been run? Another Yes. The question remains, why does he persist with this appalling management team having committed so much money to see a hugely loss-making club on the cusp of falling out of the Premier League whilst building a brand new stadium?

Profit and Loss Account

Following on from the previous 2-year £100 million plus losses, the profit and loss account shows a final loss for the year of £120.9 million.

Turnover increased to £193 million but was influenced by two contrasting factors. Broadcast income rose to a record £146.4 million as a result of the revenues (£23.5 million) from the delayed conclusion of the 2019-20 season. Matchday revenue fell as expected, from £11.9 million to £0.2 million.

Sponsorship income fell as the £30 million one-off naming rights deal from the previous year disappeared from the accounts. Taking into account the one-off payment received previously, commercial revenue improved by £0.6 million year on year.

Unfortunately, wages increased from £164.8 million to a record level of £182.6 million. Operating costs reduced as a reflection of cost-savings and the reduced costs associated with playing games behind closed doors.

Costs relating to the new stadium at Bramley-Moore Dock no longer feature in the profit and loss account as they are now considered a capital cost given the increased certainty of the project being completed.

As with the previous year, the club has decided to write down the book value of the playing squad by £15.3 million (2019-20 – £26.3 million) and increase the provision for onerous contracts to £7.2 million (2019-20 – £4.4 million)

As a result, before player and management trading, the club showed an operating loss of £29.1 million, an improvement of £14 million on the previous year as a result of the higher broadcasting revenues.

Amortisation, much loved by accounting and non-accounting fans, fell from £99.2 million to £81.2 million.

No compensation was payable in 2020-21 to former or leaving members of the coaching staff.

Profit on player trading fell from £40.5 million to £13.2 million. This reflects the difficult market conditions but also reflects the difficulty Everton have had in moving on players who frankly are on career-high contracts and don’t represent value to would-be suitors.

Interest costs on external debt rose to £8.5 million.

Despite the club making great play out of the impact of Covid on our losses (more below), the underlying loss taking into account the direct impact of Covid rose from £72.5 million in 2019-20 to £106.1 million in 2020-21.

So how are all these losses paid for? (Cash-flow)

Cash can be generated from day-to-day operating activities, from investing activities (player trading, shareholder equity injections), and from financing activities (borrowings).

In 2020/21 normal operating activities before movements in working capital saw negative cashflow of £22 million. After the change in balances of creditors and debtors the negative cash flow from operations increased to £63 million.

Cash from investing activities saw £48 million inflow from player disposals, £115 million outflow from player acquisitions, and a further £22 million on fixed assets (predominantly the new stadium at Bramley-Moore Dock). In addition, the club received a further £99.75 million from Farhad Moshiri. Investing activities therefore contributed £10.66 million in cash.

Financing contributed a net £66.4 million arising from a new loan from Rights and Media funding of £90 million (part of a £100 million facility provided by Rights and Media), and the repayment of the previous loan (£18.75 million) and interest payments of £4.8 million.

As a result of the above, cash in the bank rose by £13 million to £70 million as at 30 June 2021.

Director’s remuneration

Everton’s four-person board received £4.2 million (2019-20: £3.5 million). The highest paid director (assumed to be Brands) received £2.04 million.


Aside from shareholder loans, Everton had a £100 million 5-year facility with Rights and Media Funding and had utilised approximately £90 million of that plus a £30 million CLBILS facility with the club’s bankers Metro Bank.

Share capital and reserves

At the time of the accounts, £102 million of ordinary shares (now £135 million), a negative profit and loss reserve (accumulated losses) and at the time a £250 million shareholder loan from BlueSky Capital, a company controlled by Farhad Moshiri.

As a result, shareholder funds stood at £49.75 million (2019-20: £70.9 million).

Post balance-sheet events

BlueSky Capital provided a further £97 million of shareholder loans treated as equity.

Regarding the new stadium at Bramley-Moore Dock, Everton Stadium Development Limited entered a contract with Laing O’Rourke for the completion of enabling work. The value of this contract is £77.8 million.

Much has been asked about what would happen if Everton did not complete the stadium development (perhaps because of relegation or lack of funding). The club retained the right to terminate the enabling works contract at will subject to the payment of reasonable demolition costs. I’m assuming though we are beyond that point in the development now.

What is clear is that the long-term funding package of private placement debt to cover the new stadium is not in place and there is no suggestion in the accounts of it occurring in the short term. It is clear that the stadium is being funded by existing debt facilities and Farhad Moshiri.


The club is caught in a perfect storm of underperformance on and off the pitch whilst funding capital projects, having too big a cost base and having little idea as to how to grow its commercial income.

From a financial perspective, the club is entirely dependent on Moshiri’s willingness and ability to keep funding extraordinary losses.

From a regulatory perspective, ie, profitability and sustainability , the club is suggesting that, such is the level of Covid-related contributions to losses (£170 million in two years) that the club remains compliant with the Premier League rules. The club has confirmed as reported here that discussions have been ongoing for a considerable period of time with the Premier League. I will address this in a separate article. It is remarkable that Everton have attributed such losses when compared to how other clubs have presented the impact of Covid in their accounts.

The warning signs for the club are there for everyone to see. We have an individual who is prepared to fund these losses, but equally the same individual must be held responsible for allowing the existing board and management teams to perform in such an unsatisfactory manner.

We are a shadow of the club Moshiri inherited despite his financial backing. He has to address this through bringing in a competent board to run the club without his involvement. A continuation of a deteriorating performance can only result in non-compliant losses and probable relegation despite the progress at Bramley-Moore Dock.

This set of accounts can bring no comfort to any Evertonian and should bring no satisfaction to Moshiri.

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Reader Comments (86)

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Mark Andersson
1 Posted 30/03/2022 at 07:54:09
Thanks for the article Paul... not all doom and gloom then.

Well not for all the leeches bleeding the club and Moshiri dry...

Jerome Shields
2 Posted 30/03/2022 at 08:56:02
I think the perfect storm is marketable assets increasing in value, with potential to increase on the stadium completion. With the background of sanctions and money from sources of questionable value.

Questionable value refers to money got for nothing, with possibly more on the way. What is £100M if you got it for nothing? You don't have to worry how the club is run if ultimately you have a legit marketable saleable asset.

The Board is doing its job if Everton stay in the Premier League and are able to avoid authority-induced penalties. Even better if the whole framework that was set up to avoid sanctions and on being tested proves successful. As it appears to be.

The Premier League are more interested in money flowing into the game and it is flowing into Everton at an enormous rate. The only problem is that, on the face of it, the club has to be seen to be doing something, which in Everton's case centres on the team and associated cutbacks.

I don't agree with any of this, but this is my perspective on trying to make sense of what is going on. I will continue to support Everton and hold my noise when required.

Jerome Shields
3 Posted 30/03/2022 at 09:05:21
I actually think it would be easier to run the club properly. But that is not how the parties involved got where they are.
David Pearl
4 Posted 30/03/2022 at 09:41:07
Well we all better hope Moshiri has a few more tricks up his sleeve, we stay in the division, we get money for player sales (instead of paying to release them), and BMD gets built ASAP.

I think the point in time l thought we're doomed was when we got Bolasie instead of Zaha and l sat there thinking why.

Moshiri has continued to make changes. Fingers crossed they work because we can do nothing else. Other than support the players when they run on the pitch.

Danny O’Neill
5 Posted 30/03/2022 at 10:16:19
It's already been said, but the summary of this article captures the key requirement.

Hopefully it's not too late, but sure this summer is when the penny drops for Moshiri and he rids the club of the incompetent board he has given the keys to?

Lock them out, change the padlocks and bring in competent people who can run a football club and a business.

He is ultimately at fault for allowing this on his watch. Change is required in the blindingly obvious area of the club. For starters anyway.

Tony Waring
6 Posted 30/03/2022 at 10:22:45
Thanks Paul. On another post I asked how much directors received. This article gives me the answer.
Jerome Shields
7 Posted 30/03/2022 at 10:53:36
Transfers will continue to be controlled by other parties rather than the manager. The Summer and January Transfer process would have been a big part of Everton's Premier League presentations. I am beginning to think that the transfers of Rodriguez and Digne suited more than the manager.

The same as usual will be the theme of future transfer windows. I know that part of the spin is money will be available for the Summer. Who are they trying to kid?

Everton will have to survive in the Premier League. They will by luck, because 'bad things do not happen to bad un's. '

Danny #5

No chance IMO. Premier League survival objective achieved. The merry-go-round will continue. The Strategic Review in its implementation is a statement of intent, fully aware of the above figures as projections and completed, plus more recent performance, since this time last year.

Steve Brown
8 Posted 30/03/2022 at 11:06:49
A couple of reflections.

The level of Covid related contributions to losses (£170 million in two years) will have been agreed with the Premier League and probably accounts for the delay in publishing the accounts. That means that FFP related penalties are unlikely unless we breech the commitments that we have made to the Premier League.

The banks are obviously taking a longer-term view on the profitability and revenue generation opportunities for the club basis the construction of a new stadium.

Andrew Ellams
9 Posted 30/03/2022 at 11:11:03
Even if relegation is avoided it's going to very difficult to hold onto some of our most marketable assets this summer.

Stu Darlington
10 Posted 30/03/2022 at 11:35:00
Danny @5
I wish I had your faith!
Moshiri suddenly having a “ road to Damascus experience “ after so many years of mismanagement is not going to happen.
Depending so heavily on Moshiri’s money leaves the club dreadfully exposed,particularly as we have no major sponsor and seem unable to grow commercial income.
If he decides to pull the plug, how attractive is a debt ridden, under achieving asset to another buyer?
Jerome @2
Did I read you right saying the Board is doing it’s job if Everton stay in the Premiership and avoid penalties?
Isn’t the Boards job to improve the club financially,give stability and confidence and improve the quality of the playing staff?
Maybe it’s just me.
Paul Smith
11 Posted 30/03/2022 at 11:47:06
Handy we can write off more losses through Covid, hence it being such a high figure. The Premier League are as corrupt as Moshiri and Kenwright.

No, I have no evidence… just a hunch.

Jerome Shields
12 Posted 30/03/2022 at 12:27:02
Andrew, the marketable assets that I am talking about are not the players. It is the club as a whole, including the new stadium. It is a long-term view, as Steve says.
Don Alexander
13 Posted 30/03/2022 at 13:13:55
I have no accountancy skills at all but the state we're in, as reported, to me means we have every right to consider Moshiri to be at least one of two things; bent or thick.

Danny O’Neill
14 Posted 30/03/2022 at 13:20:34
I think you're right on the long-term view Jerome. Let's face it, the short-term is going to be turbulent.

Without dropping down the divisions, I hope we can be more Manchester City and Chelsea rather than Leeds. The former are unrecognisable and have stadia to be proud of. Despite and long and winding road to get there.

Leeds are a bit like us; I think Elland Road is still the same Elland Road I remember as much as I remember Goodison from my childhood.

Rick Tarleton
15 Posted 30/03/2022 at 13:38:50
While many Evertonians feel that Moshiri is responsible for Everton's financial predicament, because of his inept financial management of our club, it is, I'm afraid, equally true that he is all that stands between Everton and possible financial implosion.

Without his contributions, there wouldn't even be a case for us avoiding all that FFP could throw at us.

Avoiding relegation is crucial, and if we avoid it, then the selling of our better players will become inevitable and so perhaps will be relegation in the following season.

John Boswell
16 Posted 30/03/2022 at 13:59:56
Jerome @3, thank you, your pithy comment generated a smile and a chuckle on an otherwise grim thread. I agree with your point entirely, COYB.
Howard Sykes
17 Posted 30/03/2022 at 14:00:09
I keep wondering how a businessman and allegedly accountant can run a business so apparently ineptly. Are Everton in fact a laundry?
Derek Thomas
18 Posted 30/03/2022 at 14:23:20
Rick @ 15; nail / head mate.
Moshiri bails - The Club fails, simple as that.

Howard @ 17; A 'Laundry' ? 'Clean' money is supposed to come out.
In 6yrs plenty has gone in but none has come out. All we have to show for it is funking big beach volley ball court.

Brian Harrison
19 Posted 30/03/2022 at 14:26:57
As Paul the Esk concludes that the only thing keeping Everton afloat is Moshiri, and at some point it must get to the stage when the penny drops, and he thinks enough is enough.

Also Paul mentions that Everton have been allowed to offset £170 million for the 2 years that were affected by Covid which equates to £85 million per year. So how come a club with a similar fan base as us ie Aston Villa only claimed £56 million per year for the effect of Covid?

What these figures show that even if we manage to stay in the Premier League, our wage bill will need to be drastically cut, but even more important, we will need to sell to bring down our overall debt.

I shudder to think what will happen if we are relegated probably will lead to Lampard and his staff walking and most of the first team being sold. Whether Moshiri would continue to fund the building of a new stadium should that happen, I am not sure.

Barry Hesketh
20 Posted 30/03/2022 at 14:35:48
I've just seen one of those timeline videos showing the cumulative losses by Premier Clubs I think from 1999 onwards, Everton are just behind Villa and a good way behind City and Chelsea, perhaps this is the table that Moshiri and company are looking to be top of?


Duncan McDine
21 Posted 30/03/2022 at 14:49:41
Howard 17… I'm thinking along the same lines. If Everton announce that the new sleeve sponsor will be the infamous KFC rival ‘Los Pollos Hermanos' then we can join up the dots. (apologies to anyone yet to binge Breaking Bad).
David Pearl
22 Posted 30/03/2022 at 15:44:25
Duncan, we better call Saul
Jay Harris
23 Posted 30/03/2022 at 16:29:36
Any chairman in any industry would be compelled to resign after chairing that level of loss for so long but we are talking about the best salesman Everton ever had.
John Raftery
24 Posted 30/03/2022 at 16:54:01
Where do we go from here? We can only hope that Mr Moshiri remains in good health, both financially and physically. I read in this morning’s paper the stadium will not be ready at the start of the 2024/25 season. Obviously that will add to the costs of the project while delaying the benefits, potentially for a year.

Following the sharp decline in playing performance in recent seasons coupled with the lack of any European football the prospects for attracting substantial growth in commercial income seem remote. More likely it will reduce especially if, as seems probable, the suspension of the USM link becomes permanent.

The increase in overseas broadcasting rights and season ticket prices will make only a marginal dent in the accounts. Player trading in the summer might offer a significant mitigation of the risk of a financial implosion. Having in the main bought high to sell low our recent track record in that regard does not offer much encouragement that selling our better players while recruiting cheaper alternatives can be managed successfully. A relegation induced fire sale would compound the difficulties.

Duncan McDine
25 Posted 30/03/2022 at 16:55:03
I’m no accountant, but these numbers must be taken with a dock full of salt. At the very least, the financial loss must save a shitload of tax somewhere within the empire of Moshiri & friends. Whichever way you look at it though, we’re a shambles on and off the pitch.
Jimmy I'Anson
26 Posted 30/03/2022 at 17:44:15
John 24, What paper did you read this morning that said the stadium was delayed? I've never heard this anywhere else. The last we heard of this was Laing O'Rourke telling us that they were ahead of schedule.
Ian Pilkington
27 Posted 30/03/2022 at 19:43:36
Thank you, Paul, for another excellent assessment.

A glimmer of light in the darkness: surely the end of Kenwright's disastrous reign as Chairman must be in sight at last.

Jerome Shields
28 Posted 30/03/2022 at 20:04:53
Danny #14

I don't think that Leeds and Everton are comparable. Leeds just lurched from crisis to crisis. Everton is a planned structure from the outset of the takeover with Moshiri at arm's length and the club allowed to run the same as before.

Moshiri has access to money and maybe even a front for this money. He got into Everton at a discount for accepting this arrangement. What's more, this arrangement suits him and his objectives, whatever they may be, or he would have pushed for internal management change.

Sanctions and FFP rules have been manageable with limited repercussions. If Everton was not in the situation it is in, with a new stadium in progress, would the authorities involved have been as easily managed?

The Authorities have to give consideration to their actions in dealing with Everton. There was always the possibility that the parties involved and their money were going to come under scrutiny right from the start.

Obviously Moshiri had the money available and is willing to provide it. I don't buy into Moshiri saying "enough is enough" or selling to club, like he bought into it. There appears to be a wide long-term plan which is ongoing.

The money will continue to be available and the stadium will be built. How the money is fed into the club will be via the route that is acceptable to the authorities and any change in ownership will be offshore, with the true owners of Everton unknown or fronted. Everton will not be quizzed on this by anyone or have an official forum where this can be done.

A successful outcome is the limited effect of sanctions, limited effect of FFP rules, and Premier League survival. Two of these objectives have been achieved. I expect the third to be also.

There is nothing pretty about any of this nor will there be. Everton will head into next season not as the School of Science, the Dogs of War, the People's Club, plucky little Everton, but as the great survivors and hopefully they might get something right on the pitch, as Frank gains experience on a steep learning curve.

Moshiri & Co are still quids-in on their discounted Everton takeover. Usmanov always available 'to help' his mate Moshiri, is going to be awash with cash that he can't spend because of sanctions. No one will ever know. Anyway, Moshiri can always sell his £45million house in Highgate, which he purchased offshore from you know who, to add to his Liver Building money.

Danny, I would say more like Chelsea and Man City than Leeds.

Danny O’Neill
29 Posted 30/03/2022 at 20:25:12
I hope your last sentence is more accurate, Jerome, and I see the logic in your comments.

I guess I am comparing and focussing on two big clubs whose stadiums haven't changed since I was a kid in the 80s. Everton are still at pretty much the same Goodison Park I had a season ticket at when I was 12 years old. Elland Road is still the same ground it was then too. Living off the past, as much as we love it.

As opposed to those who have either relocated (Man City & Arsenal) or those who have rebuilt (Man Utd, Chelsea, Liverpool, Aston Villa, Newcastle Utd). Tottenham are an oddity having rebuilt but kind of relocated in terms of rotating the stadium 90 degrees, but it was a re-build / new ground rather than a renovation.

The future is our new stadium at Bramley-Moore Dock. That has to be our vision now. What happens in-between is anyone's guess. But let's preserve our top-flight status. Starting with 3 points on Sunday. I'll be there.

Benjamin Dyke
30 Posted 30/03/2022 at 21:07:02
There is no other way to put it than that Moshiri's investment and leadership of the club has been an absolute disaster. Of course we would not be saying that if we had had success on the field, in that case all this would be glossed over.

But all will be forgotten if we stay in the Premier League and get the new stadium. If we get relegated and get the new stadium then, over time, it may be forgotten of course but everything swings on one thing – Do not get relegated!

To spend so much money on players that could not be resold for any money, let alone more money, is a complete disgrace in my opinion. Tosun, Walcott, Bolasie to name just 3, all at a cost over £20M transfer fees alone – and for what!!!

Chris Leyland
31 Posted 30/03/2022 at 21:09:01
Surely just as we are ‘stuck' with Moshiri, Moshiri is ‘stuck' with Everton?

Any sale now would be at a huge loss to him personally as he would realistically get less than half what he's put in and that's being optimistic.

Any sale must be linked to the new stadium coming to fruition in 4/5 years and with Everton in the Premier League? He must also have his fingers in some pies re the development of the area surrounding Bramley-Moore Dock too?

In the meantime, all parties are praying that we survive this season but we then go into the next few years with a belt-tightening exercise to reduce costs by selling players and buying cheaper, lower wages replacements given that revenues aren't going to go up in any meaningful way other than via any new TV deals that may be struck by the Premier League.

John Raftery
32 Posted 30/03/2022 at 22:52:58
Jimmy (26) It was in an article in The Times by Paul Joyce….

‘Work on the £500m stadium is under way and is set to be concluded in 2024, although it has emerged that it is unlikely to be completed in time for the opening weekend of the 2024/25 season. That would leave Everton with a decision on whether to leave Goodison Park mid-campaign or extend their stay at their existing home.’

Bill Gall
33 Posted 31/03/2022 at 00:22:34
The only way anyone can take over Everton is by becoming the majority shareholder and I don't think Moshiri will sell any shares for less than he paid.

You can read on Forbes who do a real time net worth on billionaires.

On Moshiri, his real time net worth when he first became owner in 2016 it was £1.8 billion, they list his real time net worth on 30 March 2022 at £2.8 billion so it seems this accountant is not loosing very much.

Jimmy I'Anson
34 Posted 31/03/2022 at 00:46:25
John (32), I found the article but they wanted me to subscribe. I presume he didn't elaborate on it? As far as I'm aware the superstructure was started ahead of schedule when the Northwest corner came above ground just before Christmas. Any risk of delay was always attributed to the unknown quantity of emptying the dock, and the chance of finding anything substantial during the process. This never happened. I suspect Paul Joyce is a kopite and therefore making up a story to suit his own agenda.
John Raftery
35 Posted 31/03/2022 at 08:35:01
Jimmy (34) There was no elaboration. It surprised me as well. It seems odd for it to be thrown into what was already enough of a bad news story. I would be equally surprised if Joyce included it without hearing it from a source within the club or the project.
Allen Rodgers
36 Posted 31/03/2022 at 08:54:45
Re the Paul Joyce article, McNulty also said the other day on the BBC page, the opening may be mid-season. Can't find it now but he didn't elaborate either.
Jimmy I'Anson
37 Posted 31/03/2022 at 09:04:34
I'd like to hear from Laing O'Rourke on this. The project was estimated to take 150 weeks and we broke ground on the 10 August 2021. So, presuming no delays, it should be ready early July 2024.

These reporters are basically saying that we are already 2-3 months behind which is patently untrue. I believe they have an agenda and are simply jumping on the negativity currently surrounding the club.

Brian Harrison
38 Posted 31/03/2022 at 09:56:59
There has been a lot written since Everton eventually released their accounts, which paint a picture of a badly run club from top to bottom. Also its equally clear that without Moshiri Everton are in serious financial difficulty, and despite the stadium build being ahead of schedule some papers are reporting that it wont open as planned.

It has also been widely reported that Everton have been working very closely with the Premier League over our position regarding our FFP position, and many believe that Everton will be spared any points deductions or fines because they have been operating within the premier league guidelines.

Now that's all well and good and it seems the only thing that prevented Everton being fined or docked points is the £170 million that we have been allowed to offset because of the Covid restrictions over the past 2 years. This works out at £85 million per season, whereas a club of a similar stature Aston Villa only claimed £56 million per season to offset their Covid restrictions.

Now forgive me but if I am a club also battling with Everton against relegation, I would seriously question why Everton have been allowed to offset so much compared to similar clubs. And again as a director of a club fighting relegation I would want to challenge the amount Everton have been allowed to offset against Covid. And if they were only allowed the same as say Villa then they would definitely be transgressing FFP rules as it stands and would therefore incur a fine or points deduction.

Jerome Shields
39 Posted 31/03/2022 at 10:00:34

I think evolution is the word. That Everton will evolve with the Stadium to a different level, as you suggest. . The Leeds and Everton ground are similar. My Friend a Leeds supporter thought Leeds would have been a better buy than Newcastle for a billionaire, who wants to spend money. Though has mixed feelings given the Everton experience. Has been let down by the Board in the past. Something she gets very up tight about.

She travelled to home and away matches leaving her husband at home. For years they had no children and then by IVF a son was born. All his clothes bought from the Leeds shop. As soon as he was able he travelled to matches with her. The husband still left at home. She stays with Leeds friends and their families, since she could not afford it or manage otherwise, especially when her son was very young.

Good luck this Sunday. Will have to get back to Goodison myself. .

Shane Corcoran
40 Posted 31/03/2022 at 10:53:58
Although possibly not hugely material, is there any information on whether we received any compensation from Madrid for Ancelloti?
Craig Walker
41 Posted 31/03/2022 at 10:55:33
Thanks, Paul, for your brilliant analyses, as always.

I'm not well up on football finances at all but how disastrous would relegation be for Everton? Would we get parachute payments to soften the blow or would these nowhere near cover the loss in TV revenue? Would we survive relegation or could it threaten the club's existence?

It's hard to be positive on any front at the moment. I put us as one of the favourites to go down based on form. There's massive pressure on two away games against fellow strugglers and I see it far more likely we get nothing from those two matches than the two wins we need.

The other teams around us seem to face each other and so at least one team in those games will be picking up points. We've already lost to the teams around us.

I really don't see us escaping this time. I've studied the possible points scenarios and, on form, I think the games in hand won't be enough. Hope to God I'm wrong.

If relegation happens I think we'd be selling what few prized assets we have, such as Calvert-Lewin, Pickford and Richarlison (probably at a much reduced rate) and trying to get back up with a mixture of youngsters and seasoned pros. We'll probably end up longing for the days when we were only finishing around 8th.

Totally depressing.

Dave Williams
42 Posted 31/03/2022 at 11:17:07
This will most likely result in Richarlison and Calvert-Lewin being sold and maybe Mina and Pickford. Something around £100-150M would come in, would greatly improve the FFP situation and would give whoever is manager some rebuilding funds, especially with a big reduction in wages from shedding Sigurdsson, Delph, Tosun and whoever else is out of contract.

We are in an almighty mess and whoever is responsible for such mismanagement should hang their heads in shame.

Peter Neilson
43 Posted 31/03/2022 at 12:40:11
Paul, thanks for this article and your analysis of the numbers.

As you ask “Why does he persist with this appalling management team?” Only Moshiri can answer this fundamental question. It's got me stumped.

Joe McMahon
44 Posted 31/03/2022 at 13:05:48
Even if we avoid the drop, our biggest and most valuable asset, Richiarlison, will need to be sold, at the highest price possible, not the first bidder which seems to have been the way since the sale of Rooney.

Shit times for all connected apart from the very well paid players, many of which don't even play. It's pathetic.

Kevin Molloy
45 Posted 31/03/2022 at 13:20:01
hats off to Paul for some remarkably dogged reporting on this shitscape. I am also a little surprised even at this point at the benefit of the doubt he still extends to Moshiri.

'Moshiri needs to learn the lesson... he must be very disappointed with the performance of the Board' etc.

Moshiri is the bagman to a gangster. Surely that penny has dropped by now? Trying to make sense of Everton's accounts would be like adding a scene to Goodfellas where Paulie becomes joint owner of the restaurant, and they call in the IRS who tries to make sense of the ins and outs: 'Mr Clemenza, your receipts for the last 6 months, where are they?'

Unless a bolt of lightning comes, Everton are going to experience the reckoning which has been on the cards since Bill's 24/7 search for the right owners ended in Moscow...

He took the City's most precious asset and sold it to gangsters rather than proper owners because no doubt they were the only ones prepared to offer him what he thought it was worth.Well, he will have to live with himself over that.

If you were an independent observer looking at Everton, what would you be thinking is likely to happen now? Relegation? Yes, absolutely. But then what?

I think we will be lucky to remain in business, sadly. Our debts are so enormous, we have unscrupulous owners who at some point are just going to want their money back and sod the rest. But that terrible scenario, is not the end. Look at Rangers. It's just a long haul. But I think we should be prepared for it.

Paul [The Esk]
46 Posted 31/03/2022 at 14:27:52
Here's some notes on how I think the club reached the £170-220 million Covid impact. It is only my thoughts though

How did Everton arrive at the Covid attributed “losses” of £170 million potentially as high as £220 million?

Important to recognise that the losses are not real, well at least not all of them – they’re a reflection of where the club was at June 2021 as against where it thought it should be.

Firstly the “real” losses:

The accounts show Lost Revenue and Additional costs related to Covid as £67.3 million for 2020 and £14.8 million for 2021.

These are crystalised losses, i.e. they occurred, are readily identifiable and (as far as accounts can be) the truth.

Total: £82.1 million.

Then we have the write down of player values (the club will argue directly due to Covid)

£26.3 million in 2020 and £15.3 million in 2021 – total £41.6 million

Onerous contracts (again the club will argue directly due to Covid)

£4.4 million in 2020 and £7.2 million in 2021 – total £11.6 million

Un-crystalised losses – the difference between where the club was and thought it should be.

What constitutes an un-crystalised loss?

The effect of player trading profits. What are those effects? Lack of profit through lack of trading, lack of profit through supressed prices (although that argument can be countered by making purchases cheaper).  This figure is a real finger in the air……..

As a result of some players not being sold (the club will argue because of Covid related market conditions), Everton incur extra costs – wages and amortisation, as well as the absence of expected profit.

For 2020/21 players that might have been sold but were not include Bolaise, Tosun, Kenny and Keane. Ramirez and Schneiderlin went very cheaply.

Amortisation costs for those not sold = £19 million.

Wage costs for those not sold (but lent out – say attribute 50% of wages) £8 million

Those figures add up to £162.3 million. Add in what the club would say is a reasonable loss of player trading profits and you get to the £170 million figure quite easily. Throw in some other transfers out that didn’t happen and you can get to £220 million.

Essentially a mix of fact and Football Manager (fantasy) but swallowed by the PL – there may also be some double accounting in there but without more data impossible to tell

Barry Hesketh
47 Posted 31/03/2022 at 14:29:56
Kevin @ 45
A bit dramatic although you may be closer to the truth than many would like to believe, however, accountancy is a mysterious science, if it is indeed a science. Similar to government budgets there is lots of devil in the details, and we as simple folk, can only view it through the lens of our own household budgets where if we are a penny over budget we find ourselves in a pickle, but if we manage to break even or make a penny we can say 'good job done'.

The number of tax loopholes for rich folk knows no bounds and there will be some method in Moshiri's apparent madness, whether that serves Everton Fooball Club well, is debateable. Unfortunately the people he employs to run the club on a daily basis, seem ill-suited to high-finance and probably woudln't be able to spot what is good and what is bad about the current finances, or how to go about fixing them if indeed they need fixing.

The only important thing for Everton and its supporters and indeed the owner and board is the results that the club achieves in the next few crucial months, if those results are not good enough, the current issues with the accounts will seem minute in scale.

Whatever occurs in the next few months on the pitch, there will be plenty of fall-out from the accounts in the months following, which may result in the club having to sell players at knock-down prices or other developements that may impact Everton's abiltiy to compete on the pitch next season and beyond.

I sill beilieve that the only way out of this mess is for Moshiri to sell to new owners and start afresh, but nobody can force him to do that and he is just as likely to carry on until at least 2024/25 when the stadium may be complete and opened. Who knows he might have a cunning plan up his sleeve? Although that doesn't seem likely either.

I do hope that the next owners of Everton Football Club, if or when they arrive, aren't optimistic gamblers like our current and previous owners, we need pragmatic and realistic people who can set achievable targets and religiously stick to a budget.

Alan J Thompson
48 Posted 31/03/2022 at 15:02:42
Wow! Kevin(#45); With your comparison to "The Goodfellas", casting aside, are you suggesting that Goodison and/or BMD are to be burnt down?

Strewth, Season Ticket holders won't be pleased.

Kevin Molloy
49 Posted 31/03/2022 at 15:22:57
Alan yes, that pretty much sums it up. Sounds crazy, but we are in a crazy situation. Without even mentioning our crazy debts, our wage bill is insanely out of control in the premier, imagine what paying Gomes and a host of other blerts £100,000 a week will do for our prospects in the championship. Basically, we will have fifteen chaps on solid gold contracts that we can't shift. So we won't be able to buy anyone, we will on the contrary have to sell like crazy. The net effect is we keep dropping, And the further down we go, the more it costs. It's a death spiral.
Kevin Molloy
50 Posted 31/03/2022 at 15:31:17

I just can't see how anyone would be interested in buying Everton, unless for sinister motives. With our wages, crap ground, relegation prospects. Of course, everything is for sale at the right price, but my concern is that only an asset stripper would take on Everton, at a rock bottom price.

The nightmare but all too realistic prospect is that we have a firesale in the summer of all good players, Moshiri gets a lot of his money back, the club is left with all these players on contracts, and is then sold for bugger all to asset strippers who sell the ground and put us into administration.

The alternative of course is that Moshiri despite his hundreds of millions in losses, presses ahead and builds us a stadium for another half billion even after we've been relegated.

Bill Gall
51 Posted 31/03/2022 at 16:25:02
Cant believe it, signing in on an Everton supporters page and all you can read is nothing but negative comments from people who are supposed to be supporters. With 11 games to play, that is worth 33pts, and to some people we are already relegated. And now we are supposed to have been sold to gangsters. Usmanov did not buy Everton football club, he sponsored various aspects of the club and Everton FC cancelled all applicable sponsorship with companies owned by him. And I repeat who was against Usmanov before Russia invaded Ukraine.

Who would want to buy Everton FC. The premier league is a cash cow and you would be surprised who would be willing to buy. Moshiri will not sell and as the major shareholder you would have to buy over 50% of his shares to become the owner, plus his real time net worth has increased since he bought Everton.

Instead of giving that gobshite spitter on people ammunition to put the boot in when a club is down, show as a supporter you are fully behind a club that is struggling. Stop writing things that are only guesswork to make a point. There is always plenty of people who will back you up when you are doing well, your true supporters will back you up when you are in trouble. And looking at the home and away games we have thousands to back us up.

The only time I will considered we are relegated is after the 37 games and we are 4pts behind with 1 game left.

Kevin Molloy
52 Posted 31/03/2022 at 16:49:37
I think there is a difference Bill between supporting the team, and commenting on where Everton are. I'm not feeling particularly negative about the club, we've had this scenario facing us for quite a while now and it no longer shocks the way it did. But facts are facts. We are hundreds of millions in debt, are teetering on the edge of relegation, have the worst bunch of players we've ever had, all on top dollar contracts. It is quite likely we will go down, I would say, and if we do, I would also say that due to the restrictions which will ensue, we will keep dropping. this is because of our financial position. It's a spiral, we can't invest cos of FFP, and cos of the debts, we've got to sell. I don't see the point in not highlighting the risks the club faces. they may not happen, agreed. But they are at the least on the horizon
Kieran Kinsella
53 Posted 31/03/2022 at 17:16:38
Bill Gall

I guess its semantics but you refer to this as a "supporters" page. I always think of it as a fan page.

Supporter: a person who approves of and encourages someone or something

fan(atic): a person filled with excessive and single-minded zeal

I am the latter and zeal doesn't necessarily correlate with approving or encouraging failures. It is more along the lines of demanding outcomes.

Danny O’Neill
54 Posted 31/03/2022 at 17:49:51
We are all supporters and we are all fans. We are all Evertonians.

We are all entitled to praise, criticise and voice opinion on the one thing that unites us and means so much.

On Sunday, I will be amongst our unrivalled travelling support at the London Stadium willing us on to 3 crucial points.

Joined by the Everton community of supporters and fans who will no doubt be up at some ungodly hour in their own time zone to follow what we all believe in.

Support, follow, believe. Sorry, I always get like this as we approach match day!!

Brian Harrison
55 Posted 31/03/2022 at 17:53:46
Paul the Esk,

Really great to have someone post who understands the situation as well as you do.

I mentioned in my post earlier that it's hard to see how Everton reached their Covid losses that were used to offset the real losses. Even someone as bright as you, Paul, is finding our predicted Covid losses a bit of football fantasy.

I would think these figures have as much reality as an unsuccessful fisherman trying to convince everybody he really did have the biggest fish ever caught on the line but just couldn't land it.

Because these figures are a stretch of anybody's imagination, I will be surprised if one of the other relegation strugglers doesn't launch an appeal over our Walter Mitty Covid losses.

There has been a lot of talk but very little application by clubs to have supporters on the board. I am sure I and many more on T/W would put your name forward as an ideal fan representative.

Danny O’Neill
56 Posted 31/03/2022 at 18:04:26
What has happened to the fan representation initiative, by the way, Brian? Am I missing something or has it gone quiet?

Vote Paul the Esk.

I would say vote Danny but fear I would be another Kenwright!!

Bill Gall
57 Posted 31/03/2022 at 18:44:18

It depends on which dictionary you read.

Fan(atic): A person who is moved by a frenzy of enthusiasm or zeal. That makes you, by your admission, (Fan)atical.

Fan(atical): Given to or actuated by extravagant or intemperate zeal, unreasonably enthusiastic

And how can you demand something you have no control of?

I do admit we are not really supporters as per a dictionary – we are Fans.

Fan: An enthusiastic devotee of a sport.

Michael Kenrick
58 Posted 31/03/2022 at 21:19:34
The club say they will implement a Fan Advisory Board by the end of the season, Danny, so keep a look out for that one. It was a sop put forward to replace the now defunct AGM for minor shareholders, who no matter less than ever.

Either as part of that initiative, or not, they are also committed to having some form of fan representation at board meetings. But these things obviously take time.

Danny O’Neill
59 Posted 31/03/2022 at 21:39:08
I think I'm too emotionally attached to Everton, Michael. I'm better placed on the terraces.

My son would be more suitable. He's more sensible even though he's every inch and Evertonian as me.

He comes home from foreign and dangerous climes in the the next few weeks. I'm proud of what he has done.

My reward is going to be and try to get tickets for the derby. He'll love me forever or never forgive me!!

Tom Bowers
60 Posted 31/03/2022 at 22:55:21
This is astonishing and can only be bad management by the people running this club.

Considering that Everton have spent almost nothing of note on players, one wonders what have they been spending it on???

Is it the new stadium that's draining the coffers or something else?

This news on top of all the other woes on the field has come at a very bad time and could be an omen for what is to come. I hope not.

Alan J Thompson
61 Posted 01/04/2022 at 11:22:29
It might be interesting to know not only who will be out of contract at season's end but who have release clauses and/or wage reductions if we were relegated.

Or is that something else that sneaked passed the Administration?

Dave Lynch
62 Posted 01/04/2022 at 11:50:26
We can all have an opinion on why and how we got into the mess we are in.

Don't matter what the truth is.

The only truth is... We are a shit show.

Dave Abrahams
63 Posted 01/04/2022 at 12:25:58
Dave (62), yes we are definitely embarrassing to watch and there is not much entertainment on show at the moment but I think the truth of how we got into this mess does matter, it really does.
John Raftery
64 Posted 01/04/2022 at 13:34:41
A few years ago, some of us questioned the amount we were spending on certain players. We were told not to worry because it wasn't our money. Well here we are; in deep trouble with finances shredded and a playing squad the poorest we have had in many decades.

Poor recruitment lies at the heart of our current difficulties. The root cause of that was the lack of control at board level. Our decline will continue until we sort that out.

Dave Lynch
65 Posted 01/04/2022 at 17:12:07

We are a shit show on and off the pitch, mate.

It doesn't take a blind man on a galloping horse to point out the mismanagement of the club at boardroom level which has had a knock-on effect with the playing side of things.

I'm emotionally hollow with the whole circus that is Everton.

Tony Abrahams
66 Posted 02/04/2022 at 16:09:21
I’ve heard a little whisper that Moshiri has now put a relegation clause into the sale of Everton, because he’s that desperate to sell us?
Bill Gall
67 Posted 02/04/2022 at 16:36:46
Tony, I have heard a little whisper that is it Mike Ashley that wants to buy us as he likes being an owner of struggling teams.
Ray Roche
68 Posted 02/04/2022 at 16:50:58

Where have you heard any credible information regarding Moshiri wanting to sell up? Let alone anything about relegation clauses.

Tony Abrahams
69 Posted 02/04/2022 at 16:52:45
I heard it was somebody different Bill, and one of the problems had been because there wasn't a relegation clause, which has suddenly changed. This was just a little whisper though, although I'm sure Kenwright has got a lot in common with Mike Ashley, if what you've heard is true!
Will Mabon
70 Posted 02/04/2022 at 16:55:54
Ashley would be about all we need. I heard the same rumour. I stress, rumour.

But hey, he wouldn't be looking to buy a football club, didn't he just sell one? Surely not just for potential profit or financial angling, such guys are "Football men" aren't they?

Real football men would never have such transient allegiance, to swap from a northeast club to one on Merseyside. He wore the geordie shirt in the crowd.

Must be a baseless rumour. If anyone ever bids, it will surely be someone that loves Everton.

Tony Abrahams
71 Posted 02/04/2022 at 16:59:39
I don’t know much Ray, which means I can’t say much! Someone who is good, (he told me Benitez was getting the job) has told me that Moshiri is desperate to sell, and he has also got interest from people willing to buy.

He said these things take time and that’s why the interested party were wanting a relegation clause (I presume to lower the price) but it might also just be Chinese whispers, although it’s definitely not Chinese buyers, if true!

Tony Hill
72 Posted 02/04/2022 at 17:05:16
I would expect there to be buyers for Everton - who could probably now press for a relative bargain - given the vast potential of the North End and the Atlantic-facing opportunities.

The problem is that all possible, serious billionaires/state funds are likely to be morally appalling. If not, then Hallelujah.

I still favour the stripped-back, authentic model so that we don't have to hold our noses.

Will Mabon
73 Posted 02/04/2022 at 17:14:03
Tony H - I agree.
Barry Hesketh
74 Posted 02/04/2022 at 17:14:59

If we happen to get somebody to buy Everton who will prevent us holding our noses, it probably means that the last 25 years will be repeated for the next 25 years – what's not to like?

Ray Roche
75 Posted 02/04/2022 at 17:19:20

Has a consortium or individual been named by your informant?

Will Mabon
76 Posted 02/04/2022 at 17:20:26
Barry - I don't see any upward blip in that 25+ years as a result of Moshiri's presence to accompany the stink. Maybe a slight downward one if any, but that's debatable. That's on the pitch.

Off it - well I've never seen financial numbers like these before...

Tony Hill
77 Posted 02/04/2022 at 17:25:07
Barry, money has not meant success for us. Quite the reverse. I would rather we were a well-run, attractive club and team.

You never know, that recipe might bring success in any event. History suggests that what counts is toughness of mind.

Barry Hesketh
78 Posted 02/04/2022 at 17:25:52
I agree Will, I was only really speaking about on the field matters, and if we continue this way, we'll never trouble the engravers ever again, but if we do get new buyers, if they don't have both the money and the requisite football knowledge we'll continue to plough the same ground over and over again. If any new owners come in and retain the chairman and his friends we may as well fold the club,

Paul Hewitt
79 Posted 02/04/2022 at 17:41:12
I really can't see anyone wanting to buy a club who are heading for the championship and having too find £500 million to build a new stadium.
Barry Hesketh
80 Posted 02/04/2022 at 17:46:50
Paul @79
What about your hero? surely he could head and find a consortium to rescue the club that he has helped to cripple?
Paul Hewitt
81 Posted 02/04/2022 at 18:44:08
Barry @80. I wouldn't trust him, the offer he got Moshiri.
Barry Hesketh
82 Posted 02/04/2022 at 19:43:52
Paul the Esk has written a more detailed study of Everton's accounts and his final paragraph should give most Evertonians reasons to be concerned if not completely worried.

The stakes are much greater than the balance of Farhad Moshiri's bank account. The very being of the club is at stake. We have deteriorated so sharply in recent years under Moshiri's ownership and the direction of the Chair, board and executive.

There's no point in being in denial any longer. The very existence of the club is at risk unless significant changes are made to the personnel, the governance and the control of the club. A continuation of existing practices and ill-discipline may prove fatal to the patient, at best will leave the patient in a hugely sub-optimal position whilst it's peers, on the back of more relaxed financial regulation, new capital inflows, far superior leadership and greater ambition stretch their competitive advantages beyond breaking point, leaving us adrift, a former great club with no means of returning to its former glories.

A deeper delve into Everton’s 2020-21 accounts, new £100 million shareholder loan plus the Covid impact

Tony Abrahams
83 Posted 02/04/2022 at 21:01:59
A name was mentioned, Ray, and it intrigued me because my mate has mentioned this name before, but it would definitely have to be part of a consortium, if there was any truth in it, but who knows?

There are definitely brokers out there, but I personally think there are much better options than Everton because, if we are sold, the buyers will then have to find another £600 million just to complete the ground.

But maybe once the ground is complete, Everton would be a much bigger proposition for the future. But once again, who knows?

Eric Myles
84 Posted 04/04/2022 at 01:26:50
What are Other Operating Costs at now? Greater or less than when Moshiri took over..
Paul [The Esk]
85 Posted 04/04/2022 at 16:32:31
Other operating costs in 2015 were £28.9 m and £30.4 m in 2016.
Don Alexander
86 Posted 05/04/2022 at 01:19:57
Whilst we all worry and then some about relegation this season or next or, if you're somehow bizarrely still sanguine about Moshiri, Kenwright, and the board, the year after that, and so on, please take a look at the Paul the Esk analysis cited by Barry at post #82.

To say it's sobering reading is an understatement, comparable with Prime Minister Neville Chamberlain returning from a meeting with Adolf Hitler in 1938 waving a piece of bog-roll round his head that promised, he said, "Peace in our time".

As Evertonians, we just have to now, at last, find a way of massively changing the way Moshiri, Kenwright and the Board operate.

They are rapidly killing our club, demonstrably if you read Paul the Esk's analyses, and, given the fabulous wealth of Moshiri and his "chosen one" chairman, they're both easily able to sue Paul for defamation if what he says has no credibility.

And yet they don't, ever! He has their number, unarguably!

They just both enjoy sucking up whatever cash they can from a devoted fanbase and the extraordinary world of TV contracts (and wherever else Moshiri leeches from) whilst most of us lot just rant on, week after week, about the ineptness of a centre-back, midfielder, striker etc etc.

We're like complaining about a zit on a rampant tumour, and those in charge revel in it.

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