Money is ‘tight’ at Everton, but the club has denied that it is in financial meltdown. The club’s latest accounts show a pre-tax loss of £3.1m brought about mainly by an escalating debt and wage bill. Almost 85p in every pound goes towards financing the wage bill, first-team squad, academy, coaching staff, medical support and scouting network.
Money is ‘tight’ at Everton, but the club has denied that it is in financial meltdown. The club’s latest accounts show a pre-tax loss of £3.1m brought about mainly by an escalating debt and wage bill. Almost 85p in every pound goes towards financing the wage bill, first-team squad, academy, coaching staff, medical support and scouting network.
Everton’s turnover was down marginally at £79.1m in the year ending 31 May 2010. Operating costs amounted to £79.6m, producing an operating loss of £500,000 before player trading. Net debt increased by £7m to £44.9m. The wage bill rose to £54.3m, up from 62 to 69 per cent of turnover and well above the recommended 50 per cent level.
The £8m sale of their old Bellefield training ground was used to pay off previous loans and a total of £4.5m was paid in interest charges.