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Liverpool Echo
Liverpool Echo
Sport
Dean Rudge

The true cost of Everton's 2017 splurge under Ronald Koeman - and the warning it serves

Everton have largely kept their powder dry so far in the summer transfer window, their only material signing being last season's loanee Andre Gomes for a reported £22million.

By this day two years ago, as Farhad Moshiri geared up for his first full season at Goodison Park, the club had spent around £90million.

With Ronald Koeman seemingly given carte blanche to revamp the squad as he saw fit, under the tutelage of director of football Steve Walsh, the club brought in Davy Klaassen, Henry Onyekuru, Jordan Pickford, Michael Keane and Sandro Ramirez.

Almost two months of the transfer window remained, and Everton didn't rest on their laurels, smashing their transfer record for a second time - Jordan Pickford had earlier taken that honour - with the £45million signing of Gylfi Sigurdsson.

Nikola Vlašić and Wayne Rooney - the latter on a free - also arrived, and the January sigings of Theo Walcott and Cenk Tosun took the club's total spending north of £180million, by some estimates.

Wayne Rooney (Owen Humphreys/PA Wire)

By the end of the season, both Koeman and Walsh would be gone, while the man brought in as the Dutchman's replacement, Sam Allardyce, would also unceremoniously be shown the door.

The club spent a mammoth £14.4million sacking staff over the season, bringing total spending on new signings and settlement fees to almost £200million.

Everton's club accounts for 2017/18 make for an astonishing read.

Revenues rose by 10% to £189million, but wages rose by 40% to £146million.

A jump of two-fifths in wages - and millions spent on players who offered almost nothing over the season.

This includes reportedly paying £100,000 per week for the services of Eliaquim Mangala on loan from Manchester City, and a reported £3.6million to Klaassen.

Eliaquim Mangala of Everton leaves the pitch injured (Mark Robinson/Getty Images)

The club's amortisation charge for the season - the cost of all their signings past and present added together split equally over the length of their contracts - jumped by an unbelievable 80% to £67million.

This left the club with annual losses of £98million - or almost £2million a week.

Thankfully, the club was able to dial much of this down through significant player sales - including Romelu Lukaku, Ross Barkley, Gerard Deulofeu and Tom Cleverley - for a pre-tax loss of £13million.

This was still a £44million swing on 2016/17, when the club posted a healthy £31million pre-tax profit.

In order to fund this splurge, Everton requires serious financing from the men holding the keys to the safe.

Almost £45million was gifted to the club by Moshiri, taking his total across the two seasons to around £150million, while £75.2million of loans were secured from third parties secured against club assets and future transfers.

Between the end of last season and Christmas, Everton required a further £100million in interest-free loans from Moshiri.

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