Everton slip to 19th biggest club in terms of revenue

Michael Kenrick 19/01/2023 22comments  |  Jump to last

When football clubs across the world are ranked based on annual revenue (or turnover), Everton come 19th in the latest table prepared by Deloitte. 

However, there is a certain level of fiscal drag associated with the numbers used to compile the so-called "Money League", which are based on the last set of available accounts.  For Everton, that means it relates not to last season but to the season before: 2020-21, when the accounts listed Turnover at £193.1M.

The accounts of Everton FC Co Ltd for season 2021-22 are expected to be published in the next few weeks with the Club's revenue expected to be slightly lower at £181M. This has allowed Leeds Utd to jump over them into the 18th position Everton held last year. 

 

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Reader Comments (22)

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Bill Fairfield
1 Posted 19/01/2023 at 13:59:13
19th richest club in world football according to Deloitte.

Scratching about for other clubs' cast-offs.

Peter Neilson
2 Posted 19/01/2023 at 16:05:47
Revenue in isolation is pretty meaningless as demonstrated by our financial position.

Revenue is Vanity. Profit is Sanity. Cash is Reality.

Ian Bennett
3 Posted 19/01/2023 at 17:12:08
And the value for money on wages and intangible assets, our survey said fuck all...
Nick Page
4 Posted 19/01/2023 at 17:54:55
Revenue means fuck-all in reality – especially if your costs outweigh sales and you're making losses. And then you can't cover your debt. And then the banks pull their financing. And then you're bankrupt and selling everything to cover the debt.

In finance, a typical measure of indebtedness is net debt (gross debt less cash) / EBITDA. I've never run an analysis on Everton but I imagine it doesn't look pretty. If a stock is >3x ND/EBITDA then it's considered “leveraged”/risky.

I'm pretty sure Paul the Esk has done some Financial Analysis on the annual reports. Man Utd are listed so it's easy to pull their annuals and have a look (be under Investor Relations on their corporate website).

Fran Mitchell
5 Posted 19/01/2023 at 17:56:52
Just exemplifies how badly we are ran.
John Pickles
6 Posted 19/01/2023 at 21:27:59
But we are Number 1 in terms of incompetence.
Michael Kenrick
7 Posted 19/01/2023 at 21:44:49
You lads don't think much of Revenue as a metric but the serious lack of it is the root of so many of our problems.

And if it's as meaningless as you claim, how come all the Big Clubs are right up there, hogging the top spots???

Will Mabon
8 Posted 19/01/2023 at 21:58:13
Not all lads think that.

There are more financial cushions than ever before to help carry poor revenue for periods but it's really just deferment.

Nick Page
9 Posted 19/01/2023 at 22:02:31
Michael. It's profits not revenue. I should know. Look at General Motors revenues and profits vs Apple. In fact it's not even profits (or earnings) it's really free cash flow that determines the value of a company because it's the present value of the discounted cash flows at an appropriate rate (the cost of capital or the WACC) that basically determines the share price or value. So if you want to buy stocks and make money, buy those that generate sustainable free cash flow with management that are good capital allocators, that have a low cost of capital.
Joe McMahon
10 Posted 19/01/2023 at 22:09:01
We will get a bit of money on deadline day as Spurs patheticly low bid for Pickford is accepted.
Will Mabon
11 Posted 19/01/2023 at 22:13:54
Nick, too much investment detail!

I agree but long term it's actually both. No revenue, no nothing.

Will Mabon
12 Posted 19/01/2023 at 22:19:35
Joe, stop it.
Nick Page
13 Posted 19/01/2023 at 22:34:57
Will, revenue/sales is one measure but depending on your fixed cost base, you can spend more / less than peers. So the lower the revenue/wage multiple is the more freedom you have to move in the transfer market. City massively inflate their revenues due to their owners sponsorship deals - it's one of the main problems with FFP that the FA/UEFA won't accept publicly but in reality allows them to maintain a faux-Super League in everything but name. Football is the biggest pyramid scheme is global sports because it's only sustained by wealthy benefactors and state sponsorship. In reality it shouldn't exist as it's a house of cards built on sand but they - the rich and influential - use it as a marketing tool. NOT really as sustainable businesses….which incidentally Man Utd IS, for their sins.
Ed Prytherch
14 Posted 19/01/2023 at 22:56:04
The difference between football club accounts and those of traded companies is that most club revenue goes to salaries, in our case it is 96%. Profits don't mean much to clubs who cannot balance their books. We have to cut salaries to match our poor revenue or we must increase revenue if we want to keep on paying the kind of wages that our players, board and coaching staff are on.
Nick Page
15 Posted 19/01/2023 at 23:04:06
Ed, if you can't balance your books you don't have profits. If you don't have profits and you have debt the banks will ask questions. I know. And they watch your cash flows like a hawk. You can only deflect the money lenders away by magically getting more cash in …. e.g. from a third party 0% loan or some dodgy revenue generating marketing “scheme” like sponsoring a stadium for a hugely inflated value. In short, Everton have been living beyond their means. And you have to spend within those means to be solvent, and successful. Nobody ever gives anybody else money for free, it's always recorded as a transaction. See Chelsea/Abramovic
Will Mabon
16 Posted 19/01/2023 at 23:04:35
Nick,

if I'm honest I'm not as current as I was despite having done OK out of it all in the past. I don't mind that because in the last decade or so it's all become a vehicle of fraud that wouldn't stand up to genuine financial scrutiny - call me old fashioned. Many so called "revenues" are nothing of the sort.

In the relatively simple financial landscape in which the majority of football clubs live, things are a little more straightforward.

Nick Page
17 Posted 19/01/2023 at 23:24:25
Will - no worries mate, honestly. I'm just trying to paint you a realistic picture. Football isn't reality - its economics don't add up hence the prevalence of wealthy benefactors. It's a diabolical fucking system. But look at Brentford for a great example of how it can be done….with a lot of effort, tons of brains and some maths. We're the opposite end - dead last, and we've sunk BECAUSE OF KENWRIGHT. Not Moshiri. Not managers or DoF's. Not Baxendale or Sharp but KENWRIGHT. Bill fucking Kenwright.

If you disagree, Bill come and debate me.

Will Mabon
18 Posted 19/01/2023 at 23:51:54
Nick,

economics as a global whole don't add up in the traditional sense and haven't for a couple of centuries. Most of what happens now is essentially trying to re-express and conceptualize beneath the fact that we've borrowed from two generations into the future: unless we can find another planet to trade with, the books can never be "balanced" - but that's a whole different story.

Ed Prytherch
19 Posted 20/01/2023 at 03:07:35
Will,

How the fuck can you borrow from people who have not been born? Even Kenwright and Moshiri cannot do that.

Eric Myles
20 Posted 20/01/2023 at 14:23:45
Ed #19, you borrow against futures.
Kieran Kinsella
21 Posted 20/01/2023 at 14:32:24
I was looking at our wages on sportrac and a few other sites. Granted they may not be entirely reliable (e.g. they had Iwobi already on 100k a week) but anyway, even factoring paying full wages for our loaned out players the wages came to around 90 million. So how can wages be 96% of revenue that is more that double 90 million? I can't see us paying the tea ladies and coaches 100 million. I can't see any players earning bonuses as we haven't won anything and nobody has set any kind of goalscoring records.
Justin Doone
22 Posted 21/01/2023 at 15:18:42
Rules can be interpreted in different ways, be that accounting, transfers, sustainability, VAR and on..

The problem, Evertons big problem is on the pitch. If we were winning and finishing in the top 4 playing in the champions league we would be far happier and in a better financial position.

Until that changes, even a new stadium will only help so much.

We needed to develop our own players better. We need to recruit better. We need to market ourselves better but mostly importantly we need to play better, win more games and be better.

As a simple fan, I can be better by being more positive and encouraging on match days. We have a good fan base but let's all try and be better!

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