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Liverpool Echo
Liverpool Echo
Sport
Phil Kirkbride

Wages, transfer fees and stadium spending - Key figures from Everton's accounts you may have missed

The headline from the release of Everton's accounts were the club announcing a second year of record losses, the impact of Covid and the extent of Farhad Moshiri's continued investment.

But we have sifted through the numbers to pull out detail beyond the attention-grabbing figures.

Wages

Everton's wage bill stood at £164.8m by the end of June this year. That saw a jump from £160m in the previous accounts, but that figure was based on a 13 month period. Like for like, the Blues' wage bill increased from around £152m in the previous season to nearly £165m last term.

The club's wage to turnover ratio also increased to 89%, having been at 85% during the last accounts.

But board member Sasha Ryazantsev said: "This figure has been artificially inflated by the loss of revenue because of the COVID-19 disruption and the delayed revenue recognition profile due to the 2019/20 season being completed in July 2020."

He added: "The Club’s policy is to reduce the wage to turnover ratio going forward to bring it more in line with its peers in the Premier League, although it’s important to note that our ability to drive wages down is limited by the fact that we operate in a competitive market environment.

Player costs

The amount of money Everton spent on player amortisation of contracts leapt to nearly £100m last season.

Continued investment in the squad during the summer of 2019 - including on players such as Moise Kean and Alex Iwobi - saw that number rise from £95.1m in the previous 12 months.

And as a consequence of the impact of Covid, the Blues also recorded a player impairment charge - the act of reducing a player's value in the accounts - to the tune of £26.3m.

Ryazantsev explained: "Pre COVID-19 the Club would have been confident of either selling, or realising a value in use for, these players at an amount above their net book value.

"Underlying market conditions as at 30 June 2020 meant this was no longer probable. The Club has therefore recognised an exceptional impairment charge of £26.3m in relation to player registrations as a direct and unavoidable consequence of the market conditions presented by COVID-19..."

*Who has been Everton's Footballer of the Year? Cast your vote HERE.

A new term features in this year's accounts - Onerous Contract - which saw the club pay £4.4m. It relates to certain players who spent last season on loan but whose wages were not 100% picked up by the new club, resulting in Everton still paying a portion of their salary.

Last season, Everton sent players including Sandro Ramirez, Yannick Bolasie and Jonjoe Kenny out on loan but it is not clear to which squad members the figure refers to.

Stadium spending

Everton are hoping to win planning approval for their 52,888 capacity stadium at Bramley-Moore Dock soon.

And the extent of the club's investment into the planning, design and preparatory work for a new home now stands at almost £40m.

Another £19.9m was spent in the latest accounting period and the money cannot be capitalised until planning permission is granted.

Sponsorship deals

Everton saw income from sponsorship, merchandising and advertising increase significantly from 12 months ago.

It jumped from £29.1m to £63.7m.

Why? In main, the £30m new stadium naming rights deal signed with USM dropped into the club's coffers. The period also saw new and improved deals with MegaFon and Fratelli Beretta for example.

Ryazantsev commented: "USM Holdings continue to hold naming rights to USM Finch Farm with several other assets and remain a key partner of the Club.

"We are extremely grateful for their ongoing support in the current uncertain environment."

Banking and net debt

The continued investment from Moshiri (up to £450m to date) in part helped Everton reduce their net debt to £2.3m from £9.2m.

Everton have also confirmed the £80m credit facility with Rights and Media and revealed they raised £20m in the form of a loan from Metro Bank under the organisation's Coronavirus Large Business Interruption Loan Scheme, to the club to manage the impact of the pandemic.

 
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