Relegation Would Have a Major Impact on Everton Finances

Everton finances

As the Premier League enters the last part of the season, the battle for Everton to stay in the division heats up. The Toffees have been a prominent member of the top division since 1954/55 and rarely flirt with relegation. However, with a run of two wins in their last 13 games in the league, Frank Lampard’s side sits 17th. Relegation would have a detrimental effect on the Everton finances.

Everton Finances Proving Worrisome

Club on a Downward Spiral On and Off the Pitch

Off the pitch, the Toffees seem to be in an equally dire state with the club accounts stating they lost £120.9 million for the 2020/21 season. This is the poorest so far outside of the top six clubs in England, with only Chelsea and Arsenal posting worse financial results so far for that campaign.

This continues to be a worrying trend for Everton who have now lost £373 million over the past three seasons. Yet, despite the continuing losses for the club the wage bill still rises, increasing by £18 million to a total of £183 million for the 2020/21 season. As a result, the club’s wage to turnover is at a staggering 95 per cent. With the possibility of relegation increasing by the day, many might wonder what changes the club might have to make if it becomes a reality.

Bournemouth Are a Perfect Example

AFC Bournemouth were relegated from the Premier League in the 2019/20 season and had to completely change their financial structure upon their arrival in the Championship. In their last season in the top flight, they made a £60 million loss whereas in their next season they made a £17 million profit.

This was mainly due to the cuts they made due to their relegation such as wages which were reduced from £107.9 million to £57.4 million a massive 47 per cent decrease. Originally, the club’s wages to turnover were 113 per cent, however, this was then reduced to 80 per cent. On top of this, the Cherries sold key first-team players such as Aaron Ramsdale and Nathan Ake which helped to raise additional funds for the season.

What This Could Mean for Everton Finances 

If the Toffees were to follow the same trend that the Cherries took it would mean that the club would have to lose around £90 million worth of wages within the year. This would most certainly mean losing some of their most known players such as Dominic Calvert-Lewin and Richarlison, with many clubs likely to be interested if they were to fall out of the division. The money of these potential sales plus the relaxation it would have on the wage bill could push Everton into profit for the first time in five years however, the quality of the first-team squad would most certainly decline.

Sadly, it would most likely mean many of the non-playing staff might also be out of a job to balance the books and try and get the club into some sort of profit. For a club that has traditionally been well run when looking at the financial side of things, it is a sad sight to see. Between 2012 and 2018, the biggest loss the club ever made was £24 million but that now seems to be a distant memory. Many Everton fans will no doubt hope that things will improve soon, and they won’t end up in financial difficulty like many clubs have recently.

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