Everton’s accounts for the 2024 season show a loss of £52m, down from a loss of £89m the previous year.
While the accounts mean a seventh consecutive year of losses for the club there is plenty to be positive about. The accounts reflect the final full year of Farhad Moshiri’s disastrous ownership and saw a reduction in wage costs relative to turnover and a slight increase in revenue.
Evertonians can read a fantastic breakdown of the accounts on the Athletic and by The Esk but the short story is that the incoming Friedkin Group takeover and the move to Bramley Moore will begin to deliver major improvements in Everton’s financial situation in the next few years.
It leaves one question for fans – will Everton meet PSR requirements when the deadline of 30 June arrives? Last year saw a bit of a scramble with the sales of Ben Godfrey and Lewis Dobbin helping Everton over the line.
This year David Moyes has already referred to one final bill to be paid before PSR restrictions are lifted in July – but what exactly does this mean?
PSR allows for a £105m loss across three seasons on a rolling basis. It means for summer 2025 Everton need to make no more than a £105m loss across 2023, 2024 and 2025.
This does not mean total losses. Some losses are not included in PSR calculations including spending on community projects, the women’s team and some infrastructure costs.
As it stands, Everton’s losses are as follows:
2022 – Total loss £44.7m, PSR loss £2.2m
2023 – Total loss £89m, PSR loss £62.7m
2024 – Total loss £52m, PSR loss unknown (but must be under £38m)
We already know Everton’s PSR loss in 2023 was a hefty £62.7m. As the previous year was only £2.2m, we know 2024’s stated PSR losses had to be less than £38m of the recorded total £52m losses for Everton to be compliant in 2024. We know that Everton were compliant because they avoided a points deduction this season.
For the 2025 summer we ‘lose’ 2022 in the rolling three year total, which means Everton lose quite a good year of losses given it was only £2.2m.
So we are looking at 2023’s £62.7m and 2024’s number. Everton have not confirmed how much of that £52m is stated as PSR losses but if it is the full £38m it leaves Everton on just over £100m in PSR losses for 2023 and 2024.
It means Everton have to almost break even for PSR in 2025 to meet the regulations.
It is important to look at this in context. In 2023 Everton lost nearly £90m but only £62.7m counted as PSR losses. If a similar third of 2024’s £52m loss was not included in PSR calculations it would mean closer to £20-£30m of PSR losses, giving further wiggle room for 2025.
There is also the trajectory of the club’s finances. An £89m loss in 2023 preceeded a £52m loss in 2024. This year Everton sold Amadou Onana for £60m and that will be reflected in the 2025 accounts, although Illiman Ndiaye and Jake O’Brien deals will take back some of that balance.
Everton also released high earners including Dele Alli and Andre Gomes last summer. The two alone save £1m per month in wages.
Then you can add on improved commercial deals such as founding Bramley Moore partners Aramark and Christopher Ward, plus the new Lexus advertising around Goodison Park on match days. This, added to the fact Everton have refinanced debt that was reportedly costing the club around £1m a week will bring down spending costs drastically for six months of the PSR year since the Friedkin’s took over the club.
All of this is a long-winded way to say you can expect Everton’s revenue to be up compared to 2024, while spend will be down, particularly when it comes to player wages. It means a £52m loss should be turned into a much smaller one, and the subsequent PSR loss will likely be £20-£30m less than that once the club writes off spending on things like the women’s team.
The result is that the club is zeroing in on a ‘break even’ PSR year in 2025. It does not necessarily mean Everton will not have to be creative before the June 2025 deadline. Moyes spoke of one more bill and it remains to be seen if that means a small sale to bridge any funding gaps. Of course, a major commercial deal such as stadium naming rights may also help to do that.
It definitely means Everton are skirting the edge of PSR and are not in the sort of dire straits that would mean a fire sale before 30 June. It is very likely Everton are compliant and simply have to wait until July before they can begin to spend.
The worst case scenario would be a small sale needed. It could be somebody like Nathan Patterson, Joao Virginia or one of the younger players – although fans will hope Harrison Armstrong remains at the club despite his homegrown status. A Ben Godfrey-style sale would almost definitely bridge any gap.
Once July comes around the large loss of 2023 drops off the PSR calculation, leaving only 2024’s loss of at most £38m and 2025’s miniscule loss of a couple of a million at most. That leaves £70m wiggle room for PSR and while Everton will not want to massively overspend it gives plenty of room for incoming deals spread across the terms of a contract.
Everton will also be able to benefit from Bramley Moore Stadium in the 2026 calculation. With external events such as the Rugby League and music concerts, hospitality and extra season tickets, increased spend in the ground and a potential naming rights partner Everton’s revenue will increase by a signficant amount, further boosting the club’s ability to compete financially.