Everton announce losses of almost £140million in ‘very challenging year’

Everton have announced record losses of almost £140million after the implications of the coronavirus pandemic significantly impacted revenues.

The club’s deficit after tax was £139.9m, considerably worse than a year ago when they posted a then-record loss of £111.8m, albeit over a 13-month accounting period.

Everton said the cost of Covid-19 amounted to an unforeseen loss of £67.3m.

To help offset the losses majority shareholder Farhad Moshiri pumped in £50m of his own cash during the last financial year up to June 2020 and has already put in a further £50m for the current period.

That took his investment in the club since assuming control in February 2016 to £400m, with plans for a further £100m to be injected.

As a result the club have taken steps to create and propose a new share issue to Moshiri’s Blue Heaven Holdings Limited up to a value of £250m, with the conversion of previous shareholder loans into equity equating to £150m of that total.

Games at Goodison Park have been played behind closed doors
Games at Goodison Park have been played behind closed doors

That would potentially take his share in the club from 77.2 per cent to 93.3 per cent.

Everton chief executive Denise Barrett-Baxendale said: “Clearly this has been a very challenging year, not least from a financial perspective with the impact of Covid-19 having a profound, wide-reaching and material impact on our figures.

“Prior to the pandemic, we were forecasting record revenues in excess of £200m. Our final accounts show that a significant proportion of our losses have been directly attributable to the pandemic.”