Everton have announced a post-tax loss of £4.1m for 2014-15 despite increasing turnover to a club record £125.6m.
The Goodison Park club made a record profit of £28.2m in 2013-14 due mainly to the first year of the new broadcasting deal and player sales, notably Marouane Fellaini’s £27.5m transfer to Manchester United.
Last year, according to accounts released on Wednesday, Everton made an operating profit of £16m before player trading. After player trading, and last summer there were no major sales but significant investment in Roberto Martínez’s squad such as the £28m signing of Romelu Lukaku, Everton ended the financial year with a modest post-tax loss.
The club’s net debt, reduced by over £17m to £28.1m in 2013-14, rose to £31.3m in 2014-15. Staff costs as a percentage of turnover also increased to 61.7%.
Everton’s broadcast income decreased by £3.1m as Martínez’s team slipped from fifth in the Premier League in 2014 to 11th in 2015. However, participation in the Europa League helped increase revenue from commercial activities and, with sponsorship, advertising and merchandising income on the rise, the club’s turnover grew from £120.5m in 2013-14 to a record £125.6m in the last financial year.
Robert Elstone, Everton’s chief executive, said: “Our financial performance, like so many Premier League clubs, was underpinned by the second year of a TV deal that beat all expectations, but also by increases in matchday and commercial revenues. We also continue to work hard managing and controlling our cost base and remain determined to ensure investment and spending is effective and delivers returns.
“Beyond the Premier League table, probably the most significant barometer of success is attendances and 2014-15 broke all recent records with our highest season ticket total for at least 10 years, the lowest season ticket non-renewal rate, 12 full houses and an average attendance in excess of 38,000 for the first time since 2004.
“Our revenues continue to be spent on sustaining a great academy, the best possible coaching, scouting, performance and medical teams and, of course, a first-team squad that can compete for a place in Europe. That strategy remains central to everything we do.”
