Everton goes from profit to loss

English Everton plummeted from a profit of GBP 23 million to a loss of GBP 10 million this past fiscal year.

The club recorded its second-best turnover in history, despite the cost of paying top players rising by 20 percent.

Chief executive Keith Wyness took GBP 466,000 in bonuses, toppling the GBP 177,000 from the year before, according to the club's annual accounting.

Everton's record-breaking GBP 60 million turnover moved it into the top 20 of football's "rich list" for the first time. But this year's drop might force the club from the Deloitte money league for a second year in a row.

The loss is blamed on Everton slipping to 11th place in the Premier League, as well as the ensuing loss of television income. Also playing a role is the 2005 figures included the sale of Wayne Rooney to Manchester United.

Chairman Bill Kenwright said the fact turnover had only fallen by GBP 1.9 million represented a "very strong result."

Last year, the club paid its players and staff GBP 37 million, compared with GBP 30.8 million in 2004-5, representing a 20 percent increase for the wage bill. Wages now account for 64 percent of the club's turnover, compared with 51 percent last season.

The club's report, written by its directors, said the increase was necessary to support the investment in the team during the year.

"We will, of course, continue to monitor this trend closely and take appropriate action as required," the directors wrote.

It is believed Wyness' basic salary has now been increased to at least GBP 250,000, making him one of British football's highest-paid chief executives. That rise comes despite a number of redundancies among other club staff this year.

The club's net debt position is GBP 21.8 million, an increase from GBP 19.5 million the year before.

The club sold the freehold in its Megastore and Finch Farm academy site, but now leases them back, a move which has helped finance the ongoing construction of the youth academy in Halewood.

"When finished, hopefully next summer, the complex will stand comparison to any such development in European football and will become home to the next and subsequent Everton players," Kenwright said.

One topic not covered is the club's potential move.

Everton declined comment on the report until after next week's AGM.

Source: euFootball.BIZ © Copyright 2006 - All rights reserved.