Swiss Ramble Profile picture
Jan 17, 2022 10 tweets 7 min read Read on X
After Rafael Benitez was sacked by Everton, the Spaniard released a statement, claiming that his task had been made harder by the “financial situation”, so here’s a quick look at the club’s challenges (in advance of the publication of the 2020/21 accounts) #EFC
#EFC have reported losses 5 times in the last 6 seasons up to 2019/20 with another hefty deficit anticipated in 2020/21, as almost all games were played behind closed doors. In fact, the losses in the last 2 seasons (£140m & £112m) are both in the top 7 ever recorded in England.
It is worth noting that the #EFC bottom line has been adversely impacted by the high managerial turnover since Farhad Moshiri arrived. Even before Rafa’s departure #EFC have paid out £32m in compensation and severance pay in the last 5 years.
At an operating level (i.e. excluding player sales & exceptional items), #EFC loss has shot up from £12m to £144m in just 3 years. In fairness, few clubs post operating profits, but Everton’s loss is the second highest in the last 2 seasons, only surpassed by #CFC £159m.
The #EFC wage bill has virtually doubled since 2016 from £84m to £165m. In the same period, revenue has only increased by around 50%, so the wages to turnover ratio has worsened from 61% to 89%.
Since Moshiri’s arrival, #EFC have spent big in the transfer market (until last summer). In the 4 seasons up to 2020, they splashed out a chunky £566m gross spend (£294m net), which resulted in player amortisation more than quadrupling from £22m to £99m.
This profligate approach has been essentially funded by Moshiri. Including £100m capital injections and loans in 2020/21, I reckon this now adds up to a hefty £450m. In fact, in the five years up to 2020, #EFC £350m owner funding was the highest in the Premier League.
However, Benitez’s biggest problem was probably linked to the PL’s Profitability & Sustainability rules (aka FFP). My estimate is that #EFC were way over target even after allowable deductions (including stadium costs), though were much closer after excluding COVID impact.
Given that the 2020/21 figures are likely to be even worse, #EFC have a tough challenge to be compliant with FFP regulations. This is almost certainly the reason why they spent less than £2m in the summer (on Demarai Gray) before the recent panic buys of Mykolenko and Patterson.
There is no doubt that #EFC owners have put a lot of money into the club. The problem is that they have not spent it very well. Whatever people think of Benitez’s managerial abilities, he seems to have a point when he talks about the difficult “financial situation”.

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More from @SwissRamble

Mar 20
Review of Bayern Munich's financial results for the 2023/24 season, when for once they did not win the Bundesliga, but they did reach the Champions League semi-finals. Image
Bayern's finances remain solid, as they have now been profitable for a barely credible 32 years in a row, generating an amazing €429m pre-tax profit in the last decade alone, even including the COVID impacted seasons. Image
Bayern set a new revenue record for the second year in a row, which means this has grown by €105m (16%) since the pre-pandemic peak of €660m in 2018/19. Including income from player sales, the increase was even more impressive, rising €201m (27%) from €750m to €952m. Image
Read 5 tweets
Mar 17
Review of Wolverhampton Wanderers' financial results for the 2023/24 season, when they finished 14th in the Premier League and reached the quarter-finals of the FA Cup #WWFC Image
Wolves’ pre-tax loss significantly reduced from £67m to £14m, as profit from player sales increased from £44m to £65m, while revenue rose £9m (5%) from £169m to £178m and operating expenses were cut by £18m (7%) from £269m to £241m #WWFC Image
One big reason for Wolves’ need to focus on player trading is their inability to grow their revenue. Indeed, this has only increased £5m (3%) compared to their first season back in the Premier League in 2018/19 #WWFC Image
Read 5 tweets
Jan 24
The recent sale of Khvicha Kvaratskhelia to Paris Saint-Germain for a reported €70m once again highlighted Napoli’s ability to make big money from transfers #sscnapoli Image
In fact, Napoli have four of the top ten player sales profits ever in Italy, also including Higuain, Cavani and Jorginho. Furthermore, they have made the highest profit from player sales in Italy in the last five years with nearly €300m #sscnapoli Image
This has helped Napoli generate an incredible €209m of profits in the last two seasons, which is in stark contrast to the losses registered at most of their rivals. They have fully recovered from the COVID-impacted seasons #sscnapoli Image
Read 6 tweets
Dec 16, 2024
While Manchester City have hit some bad form on the pitch recently, their financial results for the 2023/24 season were pretty impressive, featuring a new Premier League revenue record of £715m and a substantial £74m profit #MCFC Image
City's revenue slightly increased to £715m, which means that this has risen by more than a third (£180m) in just five years from the 2019 pre-pandemic level of £535m. Growth has been led by commercial, which now accounts for 48% of total income #MCFC Image
Player trading has become increasingly important to City, having made £122m in 2022/23 and £139m in 2023/24. Up until 2019/20 the club had not generated more than £40m, so they have significantly improved this area of their operations #MCFC Image
Read 6 tweets
Nov 11, 2024
Review of Rangers' financial results for the 2023/24 season, when when they finished as runners-up in the SPFL Premiership for the third year in a row, were defeated in the Scottish Cup Final, but did win the League Cup. Also reached the Europa League last 16 #RangersFC Image
After two years of small losses, when they very nearly broke-even, Rangers lost £17m before tax, mainly because profit from player sales dropped from £24m to £6m #RangersFC Image
Image
Rangers' revenue rose £4.5m (5%) from £83.8m to a club record £88.3m, which means that this has grown by an impressive £35.1m (66%) in the last five years from £53.2m #RangersFC Image
Read 6 tweets
Sep 16, 2024
Review of Manchester United's financial results for the 2023/24 season. As always, #MUFC are the first Premier League club to publish their accounts.

The period included official confirmation of the deal whereby Sir Jim Ratcliffe acquired a 27.7% stake in United. Image
On the plus side, revenue rose £14m (2%) from £648m to a new club record of £662m, while profit from player sales increased from £20m to £37m, United's best result for 15 years #MUFC
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However, the pre-tax loss quadrupled, widening by £98m from £33m to £131m, the second worst in United’s history. Club has posted a loss 5 years in a row, compared to healthy profits in five of the six years up to 2018/19 #MUFC Image
Read 6 tweets

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