Soccer

Everton post enormous record financial losses due to impact of coronavirus

Everton have posted record losses of almost £140m because of the damaging impact of the coronavirus crisis.

The club released their annual financial results on Friday evening, with the headline figure being those huge losses – an increase of almost 25 per cent on last year.

But the club’s calculations suggest the financial impact of Covid-19, in terms of lost matchday income, deferred tv payments and other commercial streams, cost them almost £70m in lost revenues.

The figures also showed an investment of £113m in the playing squad in the 2019-20 season, which added to the losses.

Everton though, maintained their long term financial position looks healthier, with commercial revenue streams increasing by a whopping 86 per cent on the previous year, to a figure of £76m.

The club has announced a new share issue to owner Farhad Moshiri’s Blue Heaven Holdings Ltd, which will provide an injection of capital into the club.

Figures revealed show that the owner has now invested £400m into Everton since his takeover five years ago, and his proposed new share issue, can raise a total of £250m in new cash and shareholder loan conversion, which is intended to go against existing debt.

In simple terms, that will raise around £100m in new cash to be injected into the club over the coming months, and the rest will be used to issue new shares to Moshiri to cover his shareholder debt, effectively increasing his stake in the club from 77.2 per cent, to 92.3 per cent.

The plan is designed to reduce debt, which helps the club in relation to FIFA financial fair play rules, by injecting cash into the club.

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