Everton has announced a net loss of £9.1m in the 2011-12 season, compared with a loss of £5.4m a year earlier, due in part to higher wages and falling season ticket sales.
Everton said that turnover was down slightly from £82m to £80.5m, due to a fall in gate receipts and season ticket sales while the Toffees were picked for fewer live TV games.
However, the Goodison Park side are confident the current financial year will bring better news, with season ticket sales up 6.4% and the club pushing for a top-four spot in the Premier League.
Sponsorship revenue showed encouraging signs of growth – up to £7.1m from £6.8m. Also, new partnership agreements made with kit supplier Nike and secondary ticketing marketplace StubHub will show up in this season’s financials.
Wages were the biggest expenditure for Everton last season, at 75% of turnover. It spent £63.4m on players’ salaries, up from £58m a year earlier (67% of turnover).
The primary reason for the sizeable increase in Everton’s wage bill were the January signings of Nikica Jelavic, Darron Gibson, Steven Pienaar and Landon Donovan, plus the new contracts that Everton gave to players like Marouane Fellaini, Tim Howard, Phil Neville and Ross Barkley.
Net debt was steady at £46m.
“The club has demonstrated its commitment to first-team success with increased expenditure on player wages,” said the club’s chief executive Robert Elstone.
“We continue to try to enhance our competitive position and, at the same time, manage cost base and debt levels effectively.”
Everton are one of those clubs that will really benefit from the new TV deal that goes into effect next season. The new deal should be worth an additional £25-30m for Everton, that if it is used prudently, should allow Everton to be profitable for the foreseeable future.