Everton FC turnover £79.1m in latest accounts.
Tue 8th Feb 2011 | Money & Finance
Everton Football Club has released its statement of accounts for June 1 2009 to May 31 2010 showing it generated turnover of £79.1m, offset by operating costs of £79.6m.
This resulted in an operating loss before player trading of £0.5m.
The operating expenses were up from £73.4m in 2009 due to increased and continued investment in the Club's playing squad.
A profit of £19m from the disposal of player registrations - due mainly to the sale of Joleon Lescott to Manchester City was reinvested in a number of new players signed during the summer.
The results also showed the club’s average attendance increased from 35,667 to 36,729 and Season Ticket numbers increased from 23,717 to 25,671 a rise of 8%, generating £19.2m.
Chairman Bill Kenwright commented: “In modern football, the difference between success and failure can be wafer-thin. Yes, those clubs fortunate enough to boast a rich and generous benefactor undoubtedly have a clearly defined advantage but the outcome of crucial matches are quite often decided not by the size of the bank balance but more by skill, good fortune or the whim of a referee.
“From a financial perspective, the year was one which was underpinned by sensible business management which enabled us to continue to do everything within our collective power to help the manager in his concerted efforts to build a squad which would challenge the top four.
“Turnover for the year of £79.1million represented a decrease of £0.6million on the previous year, £79.7million, a figure which was boosted by our progress through to the FA Cup final.
“Irrespective of their standing within the various leagues, clubs will invariably be judged on two things - performance and level of support. Our average attendance for Premier League games at Goodison Park rose to almost 37,000 during the course of the last campaign, a statistic which delights me but does not surprise me simply because we are fortunate enough to boast the most loyal and knowledgeable crowd in British football.”
Everton’s broadcast revenue increased to £50.2m due to the Club's share of the centralised revenue deal from the Europa League, although domestic broadcast revenue was down. This was due to 13 domestic games being broadcast live in contrast to 17 in the previous season.
Commercial, sponsorship and merchandising revenue increased to £7.1m due mainly to the Club's deal with Kitbag.
Chief Executive, Robert Elstone, added: “In financial terms it was another steady year in what do remain challenging economic times. As ever, our primary aim was to do all we could to help assist and support the manager.
“All monies received from the transfer of Joleon Lescott were - as we had promised - reinvested in new players.
“Our wage-to-turnover ratio figure did rise in the last financial year but that simply serves to underline our commitment to both signing the best available players and to securing the long-term futures of those already at the Club."
The Club have also strengthened their ties with the Asian market after signing a deal with a leading mobile content provider in Japan, CWS Brains.
The club's brand in Asia continues to grow since signing deals with the likes of kit sponsor Chang beer. The deal will see CWS Brains enable fans to download Everton news, ringtones, wallpapers, screensavers and videos to their mobile phones. Everton's latest contract renewal with Chang, after signing an initial deal in 2004, begins this summer and is potentially worth in excess of £13m over the next three seasons.
Mark Rowan, head of media and communications at Everton, stated: "We are delighted to have secured a deal with CWS Brains. The Everton fanbase is going from strength to strength across Asia and we hope to reach as many supporters as possible using a range of media platforms. Mobile media is evolving at quite a pace and this deal demonstrates how we are communicating and engaging with Everton fans across the globe."
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