In the current day and age, securing positive results on the pitch is no longer sufficient for European clubs, as they must do so while maintaining financial sustainability, and this applies to all Premier League clubs, including Everton.
While playing in the biggest domestic league in the world provides a team with lavish amounts of money, competing against formidable opponents week in week out requires spending enormous amounts between transfer fees and salaries. Therefore, maintaining a positive balance remains a daunting task, even for the richest.
So what about Everton’s financial status? How much can the Toffees spend in the 2023/24 season? And are they facing trouble with Financial Fair Play rules?
Let’s dig in.
Everton FFP Report
Sadly for Everton, their Financial Fair Play report has been a major concern for the club that has been suffering on an off the pitch in recent years. The Toffees’ financial numbers were dire enough to raise alarm bells, promoting an investigating from the Premier League.
As we explained in another study, the EPL has it’s own Financial Fair Play rules, and all the clubs who take part in England’s top flight must comply with these regulations. One of the rules state that a club must not register a loss that exceeds £105 million during a three-year period.
But as we shall see below, Everton have been registering enormous financial losses since the Covid-19 period. The recorded deficit reached a whooping £372 million.
So in March 2023, Everton were charged by the Premier League for alleged breaches of FFP rules and were referred to an independent commission. It remains to be seen whether the club will be able to clear its name from these allegations or instead receive a punishment that can vary between fines and point deduction.
Are Everton in Trouble with FFP?
The short answer would be yes. Everton are in trouble with FFP as the Premier League has charged the club with alleged breaches of the its Financial Fair Play rules and referred the Toffees to an independent commission.
While the charges were announced in March 2023, the procedures could take up some time before reaching a final verdict, it could even last up to four years.
How Much Can Everton Spend in 2023/24?
Everton will likely adopt a cautious approach in the 2023/24 season, so we don’t expect a lavish summer transfer campaign from the Merseyside club.
First, we should remind that the Premier League doesn’t have a Salary Cap rule installed, while their Financial Fair Play rules don’t set a limit on transfer spending.
Nevertheless, Everton’s dire finances and EPL’s ongoing investigation will force them to act heedfully this summer since they’re currently under great scrutiny.
So while some of The Blues’ supporters are hoping for an exciting transfer campaign after enduring hardships on the pitch and narrowly escaping relegation in the last two seasons, the club’s main priority will be balancing the books, so the directors will likely attempt to make a few significant sales to fund their transfer spendings.
Everton Finances
The finances at Everton have been a major cause of concern in recent years. After registering enormous losses in their financial statement in the last five years or so, the Premier League launched an investigation for alleged breaches of the league’s Financial Fair Play rules.
But as we can infer from some of the data that we’ll reveal below, the club’s dire financial situation isn’t due to the club’s market spending (at least not directly), but mostly a combination between a hefty wage bill and the calamitous financial impact of the Covid-19 pandemic.
Everton P+L (Profit and Loss)
In this section we’ll reveal the profits and losses registered by Everton in the last six campaigns as published by the club’s statement of accounts.
| Season | P+L (£) |
|---|---|
| 2016/17 | -13 million |
| 2017/18 | -111.8 million |
| 2018/19 | -139.8 million |
| 2019/20 | -120.9 million |
| 2020/21 | -354.8 million |
| 2021/22 | -44.7 million |
As we can conclude, the club has been recording losses on a yearly basis in the last six campaigns, including a whooping 354.8 million deficit in the 2020/21 season where all clubs were forced to play behind closed doors due to the Covid-19 pandemic, missing out on crucial Matchday revenues.
Everton Transfer Net Spend Year-by-Year
In this section, we’ll take a closer look at Everton’s Net Spend in the last six seasons as calculated by Transfermarkt. The figure is the sum of all transfer dealings conducted by the club during a certain campaign. It consists of both buys and sales.
If a club splashes a bigger sum on new signings compared to the transfer fees collected from sales, the Net Spend will be positive. On the contrary, the figure will be negative when the club’s incomes exceed its expenditures on the market.
| Season | Buys | Sales | Net Spend |
|---|---|---|---|
| 2017/18 | €126.38 million | €203.20 million | €-76.82 million |
| 2018/19 | €28.65 million | €99.80m | €-71.15 million |
| 2019/20 | €87.80 million | €121.00 million | €-33.20 million |
| 2020/21 | €4.43 million | €74.37 million | €-69.94 million |
| 2021/22 | €46.00 million | €39.50 million | €6.50 million |
| 2022/23 | €103.60 million | €78.20 million | €25.40 million |
| Total | €396.86 million | €616.07 million | €-219.21 million |
As we can see, Everton gained €219.21 million from their transfer dealings in the last six campaigns. Therefore, their registered overall losses aren’t directly caused by their transfer business, even if several of their recent buys have performed well below the expectations.
What is the Financial Situation with Everton?
Based on all the figures and facts stated above, Everton’s financial situation appears to be bleak in hindsight, with The Toffees registering significant losses in the last five campaigns or so.
That being said, the future may not be as dour as the numbers currently show. For instance, the Merseyside club remains in the Premier League, which guarantees major incomes for at least another campaign.
At the moment, Everton must find a way to repair the financial leak holes, starting with the wage bill. In recent years, the club signed a host of star players and handed them lucrative salaries, but most of them proved to be inept.
Therefore, offloading the deadwood and returning the bases would be key to usher in a brighter ear at Goodison Park.
