Bramley Moore: Kieran Maguire issues bleak Everton prediction after record-breaking £193m reveal
Everton cannot make a profit until they move to their new stadium – and even then they may struggle to turn their finances around.
That is the view of finance guru Kieran Maguire, speaking exclusively to Football Insider about the Toffees’ recently published annual accounts.
Everton revealed a £120.9million loss in the figures for the 2020-21 campaign, which were released on Tuesday (29 March).
That takes total losses across the last three years to £372m, over three times the Premier League’s financial fair play limit.
The club did reveal a record-breaking turnover of £193.3m, but that was largely due to deferred broadcast cash from the Covid-hit 2019-20 season.
Everton are scheduled to move into their new 53,000-seater home at Bramley Moore Dock in time for the 2024-25 season.
And Maguire forecasts that the Merseysiders can expect further losses in the intermediate period.
“They won’t be making a profit before they move to the new stadium,” he told Football Insider‘s Adam Williams.
“Even then, it is going to be a challenge. One of the great qualities about Everton is that it is the people’s club, but it’s the people of L4’s club.
“In order to be profitable, they have got to extend that appeal to a much broader market.
“How you address both of those concerns simultaneously is going to be a challenge.
“Wages at 95 per cent of income is not sustainable. If we go back to 2017, wages used to be 61 per cent of turnover.
“Unless that issue is addressed, the chances of returning to profitability are fairly slim.
“The paradox is that unless you invest in wages, you don’t get to compete in the European competitions, which in turn generates revenue.”
Everton’s financial woes would be greatly exacerbated by relegation from the Premier League.
Frank Lampard’s side are currently 17th with 11 games left to play.
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