Everton’s books are apparently being forensically examined by certain Premier League teams, who believe they have broken the top flight’s spending restrictions for the past two years.
Last month, Sportsmail revealed that Everton and the Premier League had reached an arrangement in which they would discuss on new signings and contracts in order to avoid being found in violation of the rules.
Many of their competitors were enraged by this news.
Everton’s delay in releasing their 2020-21 accounts added to the angst, with many clubs mystified as to how they were able to keep inside the expenditure limits after revealing £120 million in losses. Their overall losses in the last three years have totaled £373 million.
Clubs are only allowed to lose £105 million over three years under Premier League rules, while investment in stadiums and infrastructure, women’s football, and community projects are exempt, and further allowances have been made for the impact of Covid-19.
According to the report, the disgruntled teams are weighing their options pending the results of their investigation, and have not excluded out suing Everton in a case similar to the one filed against Derby in the Championship.
Everton stated in their records that Covid had cost them £170 million in the last two years, with a £103 million deficit in 2020-21 alone.
Some competitors have reacted with skepticism to those claims. Everton’s write-offs due to Covid are far higher than most in the Premier League, according to sources at numerous teams, despite the fact that their missing gate earnings are far lower.
Everton’s disclosed records have done little to assuage such fears, as they only detail £82 million in losses, split between £67 million in 2020 and another £15 million in 2021.
£22 million in match-day revenue, £9 million in broadcast rebates, a £17 million decline in commercial income, and a further £34 million missing from other sources such as player transfers make up the £82 million in Covid-related losses.
Everton’s competitors, on the other hand, are skeptical of their calculations and have taken matters into their own hands after failing to gain answers at Premier League shareholders’ meetings.
Everton’s losses of £373 million over the last three years are by far the largest in the Premier League, with Chelsea and Arsenal coming in second and third with losses of £222 million and £213 million, respectively, leading to skepticism that they can be explained away by the pandemic’s impact.
Everton are adamant that they are adhering to the Premier League’s profit and sustainability regulations, and they are confident that their accounts for 2020-21 will be approved by the league.
Heavy fines and a points deduction could be imposed if the club is charged with a breach.
Everton’s financial woes are compounded by the fact that they are fighting to stay in the Premier League. Following Sunday’s setback at West Ham, which was their fourth league loss in five games, Frank Lampard’s team are just three points above the bottom three, and relegation would be a financial disaster because the EFL’s spending limits are significantly harsher.