Everton has posted a second consecutive year of record revenues totalling £189m - a 10% increase on the previous year but posted an operating loss of £22.9m.
The Merseyside club’s commercial revenue from sponsorship, advertising and merchandising grew by 34% from 2017, reaching a record £20.7m, with the their first African main partner, SportPesa, and the innovative engagement with sleeve partner Rovio and its game, Angry Birds, augmented by a growing portfolio of Official Club Partners.
Combined with gate receipts, sponsorship and other commercial income, revenues increased by 45%.
Driven by a record 31,282 Season Ticket Members, an average attendance at Goodison Park of 38,797 demonstrated the unwavering support of the club’s fans – with every home seat sold for every Premier League match in the 2017/18 season.
Premier League attendances and participation in the UEFA Europa League combined to achieve a 16% increase in gate receipts when compared to the previous season.
However, 69% of the club’s total revenue is derived from broadcasting distributions which dropped marginally from £130.5m in 2017 to £130m. But the increased commercial revenues sees the club’s overall reliance on this revenue stream fall from 76% in 2017.
An eighth-place finish secured the club £25.1m in merit payment and contributed to the eighth highest Premier League broadcasting distribution, down from seventh in 2016/17.
The club’s total wage to turnover ratio has risen from 61% in 2017 to 77% in 2018 (this figure would be 73% with outsourced operations in retail and catering taken into account).
The club incurred £34m exceptional costs in 2018, not present in 2017, £14.4m of which related to settlement costs for the termination of former employees and other costs in relation to the change in coaching staff in the year.
In addition to the first team’s wage bill, other operating costs, such as the Academy and first-team support, also increased. The club also incurred costs from competing in the UEFA Europa League as well as a cost of £11.4m for the design and other work relating to the new stadium. These costs cannot be capitalised until planning permission has been granted.
As a result, the club made an operating loss of £22.9m compared with an operating profit of £25m in 2017 (both excluding player trading).
The club reported a loss after tax of £13.1m compared to a profit after tax of £30.6m in 2017.
The shareholder loan, which reached £150m in 2018, is accounted for as equity. Bluesky Capital Limited continued to support the Club post-year end with an additional shareholder loan of £100m received.
Everton Chief Executive Officer, Denise Barrett-Baxendale, said: “For the second consecutive year the club has generated record revenue. Gate receipts, sponsorship and other commercial income increased significantly by 45% and the continued and quite magnificent support of our fans meant that Season Tickets reached the cap with more than 10,000 on a waiting list.
“This commercial growth demonstrates our progress and we have a vision for the Club that is shared on and off the pitch by our Majority Shareholder, Chairman, our Board of Directors, the Everton Leadership Team, our Director of Football and Manager.”
Everton Chairman Bill Kenwright said: “With Farhad continuing his outstanding commitment, Marcel and Marco driving our first team forward, Unsie continuing to develop some of the best young talent, Denise thrusting our operations ever onwardand a fanbase that continues to inspire our ambition, we look forward to the next 12 months with purpose and anticipation.”
Image: PA Images