Record losses underscore effect of pandemic on Everton's accounts

Everton Announces Record Loss of £140 Million

'As a result the club have taken steps to create and propose a new share issue to Moshiri's Blue Heaven Holdings Limited up to a value of £250m, with the conversion of previous shareholder loans into equity equating to £150m of that total. That would potentially take his share in the club from 77.2 per cent to 93.3 per cent.'

So much riding on one man's continued benevolence.

Make no mistake, Richarlison and Digne will be leaving to balance the books! It's fine spending a fortune if you're winning, but we're getting worse!

I know all teams bar Liverpool will make record losses because of the pandemic and we've all spent and strengthened but these figures are just not sustainable. It's a second year running the losses have been astronomical. Thank god for Moshiri. He's a maniac but we're lucky he's here or we'd be Bury.

I think we can forget about the Bramley-Moore Dock stadium...

I agree with your overall sentiment; however, Bramley-Moore Dock is probably the only thing that is persuading Moshiri to keep on throwing money at the club.

If the Bramley-Moore Dock stadium wasn't in with a chance of happening, I suspect that Moshiri would have closed his wallet and he would be looking to recoup some of his losses – similar to what Randy Lerner did with Aston Villa.

I'm worried. I'm very, very worried. Richarlison and Digne will be going. I won't blame Moshiri if he decides that's what must happen. The top 4 is a closed shop unless you can spend a billion quid and not blink. Like the Sheikh.

Richarliosn will probably go, not because of the finances but it has been widely reported that he agreed to give Carlo this season and, as we are unlikely to make the Champions League, he will be sold and raise a large sum – £100M or more depending on whether he finds his goalscoring boots soon.

As Patrick says, Bramley-Moore Dock is vital as Moshiri is surely looking at making a big profit on his investment; the club will be so much easier to sell and so much more valuable with one of the best stadiums in the country to play in.

I do wonder if his mate is involved here. Moshiri is “only” worth £2bn which is not that much when talking in terms of an investment like this. Whether he will buy some shares from Farhad or help out in the background, who knows... but Farhad is surely not risking such a huge chunk of his personal wealth. Good business practice is to use other people's money, not your own, and Farhad is a top accountant!!

The current financial situation has a lot to do with Covid-19 that is affecting any activity that needs certain amounts of people attending sporting or non-sporting events.

Does anyone know if the new shares will offset FFP requirements?? I'm not sure because the money is coming directly from Moshiri's pocket and not outside revenue.

Yes, we have made record losses, so has everyone else; it's expected during a pandemic – except we have a rich owner to ameliorate the effect.

We're actually quite fortunate and something to be celebrated, methinks – not "Woe is us, disaster looms, the end is nigh".

Quite depressing, some of the comments posted on TW at times.

Good point about Kean. I'd totally forgot about him. We'll certainly get doubling our investment in him. He's 20 and banging them in. Good point.

Does anyone here believe Bill will sell his 5% shares? Me neither.

That money was probably our last chance to get us back into the top 6 and maybe a new stadium, unless Usmanov pumps his £billions behind us.

I agree with slap head, Danny Murphy. Brendan Rogers would have been a better shout than Silva, albeit unpopular with some due to his Liverpool credentials.

Moyes went back to West Ham and they aren't performing too shabbily at the moment.

I was happyish with Carlo but he needs to sort these awful performances out. I still maintain he's used to ready-made talented squads with big-name teams that are used to winning. Everton, unfortunately, isn't one of those teams.

Seeing as West Ham are in form and above Everton at the moment, I'm trying to think of the last former Everton manager to subsequently finish above Everton in the league, I'd guess it was a very long time ago – perhaps Johnny Carey with Nottingham Forest in 1967?

West Ham were also unlucky last week against Man Utd, and to be fair Moyes has got them very fit, but in this shortened season, I wonder how many teams will blow up, before the end?

Richarlison: a loss of £35 million possibly currently, but when we sell, could be a profit of £35 million, a £70 million difference.

In 3 years, Gordon, Nkounkou, Simms, Small, Godfrey and so on will be worth at least £10 million more than today. We're doing alright financially – not that drastic as the losses say. Like buying a house on a mortgage, scary cost today but the property is worth a lot more a few years later.

If I was to completely make up a consipiracy, it might be that the accounting genius of Morshiri doesn't mind this as shareholders won't bargain much in selling shares when they see the accounts.

Rafa and Rodgers are winners. David Moyes isn't! Him coming back would have been showing as much ambition as when we had Howard Kendall back for the 3rd time. It would have been the same, old predictable Everton.

Although I'd draw the line at having a born and bred RS like Gerrard ever having any association with Everton.

Are you seriously saying Allardyce was a better choice than Moyes after Koeman? No-one is suggesting Moyes was in the frame when Carlo was appointed – that would've been crazy, but at least we would've avoided the dreadful Maro Silva, who was worse than Koeman.

Those two Moshiri appointments may have financially wrecked our chances of having a trophy-winning team for another 30 years.

We didn't appoint Moyes because he wanted a long-term deal and it would have been seen as a regressive appointment. Big Sam was only ever going to be an interim appointment and, despite the turgid football, he got us to 8th.

I'm not sure why you think Brendan Rodgers or Rafa would have laughed in our faces?! Rafa, by several accounts, wanted the job and Rodgers had to go to Celtic to resurrect his career and Leicester were struggling when he took the job. He's not a committed lifelong RS, IMO, he'd have taken the job in a heartbeat. If anything to prove the RS wrong for sacking him. And he'd have been a better appointment than Big Sam, Marco Silva or David Moyes.

For me, this is good news that he is putting more money in at a time when it would be very easy to walk away given it looks like another 500m will be required, at least, for the stadium as well as the team. It solidifies the thought that usmanov is also funding this project as otherwise Moshiri would have spent a quarter of his net worth on his own and failed miserably. I can't see him spending more unless there were deeper pockets in the background.

As people have said we may well have to sell a couple of players but it won't take much of a run of wins to climb back up the league. We have the capability up front to do that. It's the defence that may stop it from happening.

Going to be a long old slog to compete at the top. I'm just going to try and enjoy watching the bits of quality we see from time to time.

Those that read the detail of the accounts may notice that USM no longer appear as a connected party in the accounts (due to Moshiri's shareholdings in USM and Everton). Moshiri's shareholding in USM has changed to the extent that USM are no longer considered to be a connected party to Everton. As a result the accounts will no longer detail the degree of financial support USM provide Everton.

Recruitment has stunk the place out. How many number ten types have we signed since his tenure started?

Sigurdsson, Klassen, Rooney, James, the wonderful Sandra from Spain.

Bolasie was a dreadful idea, as was Iwobi.

We needed Tosun and Walcott to basically have a chance of staying up that year but they have bled the club too.

Who had these idea's? Surely not the managers we have handed about 50 million to in redundancies?

What a mess. We wanted Zaha so we bought Iwobi.
Thats a terrible way to do business and wreaks of desperation. Therefore, you overpay.

Managers know what the priority is to get them results and when you are having to agree targets with another man (who then leaves responsibility to the manager) how can that keep the manager confident?

Digne has been a great signing, Richarlison too and I think the latest 3 will do ok but before that its been shocking.

Pickford, what an error that has turned out to be. Total lack of homework done on him before boosting Sunderlands bank account.

Nail on head.

If he pulled out or stopped the financial injects surely he'd lose the lot?

As for the losses, without Covid we'd have made a massive loss as it is. Most clubs make a loss and everyone knows the PL is a billionaires vanity play pen. Most football clubs do not make any financial sense from an investment perspective. Billions flow in from TV and advertising and billions flow out to the players, agents and managers. Little if anything left for the owners.

In saying that, our best 5 players are probably worth north of £300m in today's ludicrous market so we have a lot of ‘cash' on the pitch hence Moshiri may be putting more cash in but he can get a lot of cash out if he instructs the better players to be sold.

Would be great if we can continue to sign you g hungry players with pace to form a base for the years to come. The likes of Godfrey will prove a great signing imo. The likes of Mina will not.

All in all it is a bad set of accounts.

The stadium needs to ahead as that's the only thing incentivising the Moshiri gravy train

Even with that gravy train we need to reduce the wage bill and guard against accumulation of high wage deadwood.

Without these two things there is a risk we could go bust (or embark on a fairly disastrous fire sale of our best players).