Everton’s Commercial Gains Help Reduce Net Debt
Everton Football Club has released its Annual Report for the financial period ending June 2019 recording its second highest turnover with a figure of £187.7m.
The club’s net debt position decreased to £9.2m from £65.7m in 2018, whilst commercial revenue from sponsorship, advertising and merchandising grew by 40.6%, reaching a record £29.1m.
After finishing eighth in the Premier League, the club received £24.9m in merit payments and also saw an increase in the total broadcast revenue to £132.7m.
The club’s commercial growth was helped with the announcement of a long-term agreement with Fratelli Beretta, along with long-term extensions with retail partner Fanatics and Official Training Ground Partner USM Holdings.
Everton’s official partners now include SportPesa, Angry Birds, moneycorp, Molson Coors, eToro, Davanti Tyres, Umbro, Monster Energy Drink, Reach Sport, StubHub and Osonyq as its strategy of expanding its partnership portfolio and the global reach of those partnerships delivers results.
First-team squad development, continued investment in existing facilities at Goodison Park, USM Finch Farm and the Royal Liver Building and further progression of plans for a new stadium at Bramley-Moore Dock are all a reflection of the club’s long-term growth strategy. That considerable investment impacted the club’s profitability in 2018/19, resulting in a loss after interest and taxation of £111.8m.
Everton CEO Denise Barrett-Baxendale, said: “The set of accounts released today reflect our ambition and position as a club in the early stages of an investment programme.
“We have been aware of and planned for the impact the investment would have on our short-term profitability and this is part of a long-term sustainable business plan that demonstrates our commitment to operating in a financially sustainable manner.
“Looking forward, investment in a world-class new stadium at Bramley-Moore Dock offers us all an insight into the future of our club and underlines our ambition to take the club forward.”
Image: PA Images
