Everton Post Losses Totalling £9.1m
Thu 3rd Jan 2013 | Money & Finance
Everton have posted a net loss of £9.1m in their latest set of accounts released today.
The figures for the year 2011/12 reveal a 9% year-on-year increase in the wage bill taking it to £63.4m from £58m in 2010/11 with Everton’s wages as a percentage of turnover now standing at 75% [2010/11 - 67%].
Turnover was slightly down on the previous year - £80.5m from £82m - attributed to four fewer live TV games and a fall in both gate receipts and Season Ticket numbers. However, all revenue contributors have since shown encouraging signs of recovery in the current financial year with Season Ticket sales up by 6.4% on the 2011/12 season and, most recently, the sale of over 1,000 Half Season tickets.
Sponsorship revenue showed signs of growth - up to £7.1m from £6.8m with new partnership agreements made with kit supplier Nike and secondary ticketing marketplace StubHub not included in the 2011/12 financial year.
The club’s continual search for operational efficiencies delivered cost savings and resulted in other operating expenses (including running Goodison Park, and the Finch Farm Academy and Training Complex) falling for the second successive season to £22.7m [2010/11 - £23.6m].
Net debt remains largely unchanged at £46m.
Chief executive Robert Elstone said: "The Club has demonstrated its commitment to first team success with increased expenditure on player wages. We continue to try to enhance our competitive position and, at the same time, manage cost base and debt levels effectively.
“To get through a challenging year with only minimal increases in overall debt whilst at the same time, based on the opinions of many experts, strengthening our first-team squad is testament to the skill, hard work and commitment of the manager, the chairman and all their support teams.
"I'm also delighted to report, those on-field performances, boosted by new signings in the summer, have made a considerable impact on the current season. Buoyed by excellent Season Ticket sales, which have been lifted further by record Half Season ticket sales and new commercial partnerships with StubHub and Nike, the Club's turnover projections for 2012/13 are healthy.
"We continue to demonstrate on-field ambition, whilst at all times maintaining a close eye on our entire cost base."
Everton chairman Bill Kenwright reaffirmed that the search for new investment at Everton continues, adding: "My desire to find a person, or institution, with the finance to move us forward has not diminished. Despite the challenges presented by a global economic downturn, we remain positive and determined.
"My commitment to serve this football club to the very best of my ability remains a constant in my life and I am aware of the trust you put in me to do that."
Posted by: Aaron Gourley
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