
<p>Everton’s financial troubles seem to be getting worse by the day. An auditor’s report produced in March stated that the Merseyside club was facing <a href="https://worldsoccertalk.com/news/everton-facing-alleged-breach-of-financial-fair-play-rules-20230324-WST-425173.html">possible sanctions</a> for breaching Financial Fair Play rules. Then on Friday news surfaced that the Toffees could even receive a Premier League <a href="https://worldsoccertalk.com/news/everton-may-face-points-deduction-for-ffp-breach-20230331-WST-426160.html">points deduction</a>. Now, auditors claim that relegation would threaten the club’s ability to operate.</p>



<p>The Blues announced <a href="https://www.evertonfc.com/news/3127920/everton-202122-report-and-accounts" target="_blank" rel="noreferrer noopener">further financial bad news</a> on Friday. Their accounts showed a loss of about $55 million for the 2021/22 campaign. This was the fifth consecutive season that the club have reported a loss. In total, Everton have $550 million in combined losses over the last five seasons. </p>



<p>Under the current <a href="https://worldsoccertalk.com/premier-league-tv-schedule/">Premier League</a> financial rules, teams can’t exceed $128 million in losses over a three-year period. Everton, however, have far surpassed this total. Not only is the club facing fines and even a points deduction, but Premier League relegation could put the club into truly disastrous waters. </p>



<h2>Auditors remain pessimistic as Everton try to calm nerves </h2>



<p>Everton’s chief executive Denise Barrett-Baxendale has attempted to calm supporters by claiming that the Merseyside club is still in a secure position. She backed up these sentiments by praising owner Farhad Moshiri. Moshiri has provided an additional $86 million since the last financial year ended. Nevertheless, auditors are not as optimistic.</p>



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<div class="ck-twitter"><blockquote class="twitter-tweet" data-width="500" data-dnt="true"><p lang="en" dir="ltr">This is entirely foreseeable: Club relegated, phony owner’s fake finances implode, new stadium debt called in, construction abandoned, lawsuits, adminstration, winding up, collapse, Everton 1878-2023.<br><br>Relegation is not an option.<a href="https://t.co/nfEU0C6Xtr">https://t.co/nfEU0C6Xtr</a></p>— Luke DeCock (@LukeDeCock) <a href="https://twitter.com/LukeDeCock/status/1642175848965890049?ref_src=twsrc%5Etfw">April 1, 2023</a></blockquote></div><script async="" src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
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<p>“Should the club be relegated, it will require additional financial support from its majority shareholder,” club auditors <a href="https://www.skysports.com/football/news/11671/12846857/everton-express-concerns-relegation-from-premier-league-could-jeopardise-ability-to-continue-as-going-concern" target="_blank" rel="noreferrer noopener">detailed</a> in the report released on Friday. “These matters indicate that a material uncertainty exists that may cast significant doubt over on the group’s ability to continue as a going concern.”</p>



<h2>Cutbacks have hindered the team on the pitch</h2>



<p>Everton have been in cost-cutting mode for more than a year now. Staff payments have reduced by about $25 million during this timeframe. However, broadcasting revenue is down and overall debt is on the rise due to the Bramley-Moore stadium project. The club’s position in the table is also influencing how many Everton matches are aired on live television.</p>



<p>The Toffees currently sit 15th in the Premier League table, but are just two points clear of the relegation zone. A possible points deduction could be the final nail in the team’s coffin. League officials expect a decision on Everton’s financial violations before the end of the current season.</p>



<p>Photo Credit: IMAGO / Action Plus</p>


Financial ruin could engulf Everton Football Club if the team slip out of the Premier League and into the Championship

Everton could go out of existence if relegated - World Soccer Talk

Everton could go out of existence if relegated


<p>A season of change and turmoil continues for Everton as owner Farhad Moshiri puts the club up for sale. Everton, one of the most <a href="https://worldsoccertalk.com/podcasts/worst-run-club-premier-league/">dysfunctional clubs</a> in the <a href="https://worldsoccertalk.com/premier-league-tv-schedule/">Premier League</a>, are firmly in a relegation scrap. The club just sacked Frank Lampard, failed to appoint a new manager and <a href="https://www.espn.com/soccer/soccer-transfers/story/4860230/tottenham-set-to-hijack-everton-loan-villarreal-arnaut-danjuma" target="_blank" rel="noreferrer noopener">lost out on Arnaut Danjuma</a>.</p>



<p>Now, the owner that oversaw this collapse is ready to get his name out of the spotlight, according to <a href="https://www.theguardian.com/football/2023/jan/24/everton-for-sale-farhad-moshiri-asking-price-more-than-500m" target="_blank" rel="noreferrer noopener"><em>The Guardian’s </em>Will Unwin</a>. Moshiri is aiming to recoup some of the money he personally invested into Everton’s new stadium project. </p>



<p>That stadium, currently under construction at Bramley-Moore Dock just two miles from Goodison Park, is set for completion ahead of the 2024/25 campaign. The estimated cost was around $625 million. </p>



<p>Interestingly, that is the figure that Moshiri wishes to achieve in this sale of Everton. There are reported suitors ready to pay over the $600 million that Moshiri wants. However, no official names are available. Deloitte is in charge of handling the sale of Everton.</p>



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<p>Moshiri has been at the helm of Everton since 2016, when he purchased just under 50% of the club. He upped his ownership to 94% this time last year.</p>



<h2>Everton sale puts more question marks over cloudy season</h2>



<p>Although investors are ready to purchase the club, it does not solve the problems overnight. Everton poured over $800 million into transfers while Moshiri oversaw the club. In return, the club barely cracked $500 million in player sales. Much of that came from the <a href="https://worldsoccertalk.com/2022/06/30/tottenham-closing-on-deal-for-evertons-richarlison-reports/">sale of Richarlison</a> this past season.</p>



<p>Over the last three seasons, Everton reported losses over $450 million. <em>The Guardian </em>noted that Moshiri’s financial injections are the only thing keeping the poorly run club afloat. It does not help to lose the commercial connections provided by Russian oligarch Alisher Usmanov following the <a href="https://worldsoccertalk.com/news/russian-invasion-impacts-global-soccer-20220303-CMS-373082.html">invasion of Ukraine</a>, either. </p>



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<p><em>PHOTO: IMAGO / PA Images</em></p>


Everton are for sale. Current owner Farhad Moshiri is looking to recoup some of the investment he put into Everton's new stadium.

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Everton could go out of existence if relegated

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