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Everton release Accounts for 2010-11

Michael Kenrick , 9 December, 63comments  |  Jump to most recent
Sale of Bellefield masks biggest operating loss
Everton have returned to a more timely schedule for the release of their Annual Report to Shareholders, which includes the Accounts for the year ending 31 May 2011. The Accounts show an operating loss of only £½M thanks to the sale of Bellefield, with still over £23M in "Other Operating Costs" that are unaccounted for on turnover that increased marginally to £82M. And there was a similar increase in wages to £38M (71% of turnover), with the net debt listed as steady at £44.9M.

Joe Beardwood has kindly provided us with this quick overview of the key highlights:

At the risk of being accused of putting a spin on this year's accounts then the numbers can speak for themselves:

  • Turnover of £82m is the highest in the club's history
  • Media revenues (new TV deal) up 5.4% to £53m — up from £27m five years ago.
  • Gate receipts and catering down for the second consecutive year by 9% (down 11% year before)
  • Wages and salaries up by 7% to £58m (£38m in 2007)
  • Record operating loss of £13.8m excluding the one-off sale of Bellefield training ground for £8.4m
  • The level of borrowing is static at £47.6m (£9m bank overdraft, £14m bank loans, £24.6m Bear Stearns loan
  • The balance sheet is the weakest ever — net liabilities of £33.6m versus £28m last year.
  • Total finance charges for the last ten years now over £32m (Bear Stearns loan was originally £30m — point at which the selling assets and taking loans strategy started).
For those who want to make direct comparisons with previous financial performance, Joe has prepared these excellent tables (in pdf format) analysing Profit & Loss over the last 11 years, and Cash Flow over the last seven years.

The underlying message from the club is one of relative stability in contrast to other clubs that show massive losses but boast massive investment, and this hides the real financial constraint — that Everton must continue to sell their better/younger players.

While the take-home message from Robert Elstone via the Echo is that the undisclosed asking price for Everton is not what's preventing investment/sale of the club:

"I would again go on record to refute any claims or assertions that the reason the club is not being sold is because the shareholder or owners are asking too much money for it. That is 100% not the case."

Everton's Annual Report and Accounts can be viewed in full at Scribd.

Quotes or other material sourced from Liverpool Echo

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