By David Owen
January 5 – Another Premier League club has reported strong 2016-17 profits, as a consequence largely of the league’s new TV deal. Everton have clocked up a £30.6 million post-tax profit on turnover of £171.3 million, almost £50 million more than the previous highest recorded.
In a report on the club’s website, however, the Merseyside outfit noted that a “substantial shareholder loan” of £105 million had increased to £150 million post year-end. This had no fixed repayment date and “is reported as equity”. It had resulted in the balance-sheet reverting to “a net asset position of £91.7 million”.
Iranian businessman Farhad Moshiri bought a 49.9% stake in the club two years ago. Chairman Bill Kenwright said the chance to “grow further” had been made possible by the “much-improved” financial position secured by Moshiri’s investment in the club.
Moshiri’s support, Kenwright added, had “allowed us to repay the long-term debt, invest in our playing squad, expand and improve Finch Farm and make significant and overdue improvements to how Goodison Park looks and operates.” The Toffees said the debt it had been able to repay had been costing £2.8 million per annum in interest and finance charges.
Everton is planning to move to a new stadium at Bramley Moore Dock. It is targeting the first game of the 2022-23 season for its first match in its new home, even though chief executive Robert Elstone recently disclosed that the “funding target” had “escalated significantly”.
Sponsorship and advertising revenue rose strongly in the latest period, from £9.3 million to £15.4 million, but in spite of 99% occupancy at Goodison Park, gate receipts dropped by £3.6 million.
The club, now rebuilding under Sam Allardyce after a disappointing start to the season, experienced a 25% increase in staff costs to £104.7 million. This reflected a string of signings, including Yannick Bolasie, Morgan Schneiderlin and Ashley Williams. Romelu Lukaku’s big money transfer to Manchester United looks set to provide a big boost to the 2017-18 bottom-line.
Contact the writer of this story at moc.l1734830527labto1734830527ofdlr1734830527owedi1734830527sni@n1734830527ewo.d1734830527ivad1734830527