Sport nationEverton FC is facing a new financial challenge, with a potential £104m Premier League profit and sustainability (PSR) problem looming. Despite avoiding punishment for their financial performance last season, the club’s struggles continue. The Toffees have recouped around £20m from the sales of Ben Godfrey and Lewis Dobbin, but their financial situation remains dire.
The club’s PSR issues stem from monumental year-on-year losses, resulting in two separate points deductions in 2023-24. Dan Friedkin, in talks to buy the club from Farhad Moshiri, will inherit this financial legacy. Everton’s short-term PSR issues may worsen, with a reported £62.7m loss in 2022-23 and projected similar losses in 2023-24. This would result in combined PSR losses of £124m over two seasons, exceeding the allowed £105m maximum.
To avoid another fine or points deduction, Everton must post a profit in 2024-25, a challenging task given their history of significant losses and high wages-to-turnover ratio. The club’s amortisation bill of around £75m further complicates their financial situation.
A dispute with the Premier League over their 2022-23 accounts adds to Everton’s woes. The issue revolves around capitalised interest payments on their new stadium at Bramley Moore Dock, with the club and auditors believing they should be excluded from PSR calculations. A follow-up hearing is scheduled, and an adverse outcome could result in another points deduction and fine.
Everton’s financial struggles have significant implications for the club’s future, with a new owner and potential points deduction looming. The situation highlights the challenges faced by Premier League clubs in maintaining financial sustainability while competing at the highest level.
The club’s history of significant losses, with four of the last five seasons seeing losses exceeding £100m, makes their financial situation even more precarious. The wages-to-turnover ratio, one of the worst in the division, and the amortisation bill of £75m make it difficult for Everton to post a profit in 2024-25.
The PSR issues and potential points deduction or fine will have a significant impact on Everton’s plans for the upcoming season. The club’s ability to compete in the transfer market and attract new signings will be affected, making it challenging for Sean Dyche to build a competitive squad.
In conclusion, Everton FC is facing significant financial challenges, with a potential £104m PSR problem looming. The club’s history of losses, high wages-to-turnover ratio, and amortisation bill make it challenging to post a profit in 2024-25. The potential points deduction or fine will have a significant impact on the club’s plans for the upcoming season, making it essential for Everton to address their financial issues urgently.
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Amina Umar
