Everton quietly pass PSR as Friedkin Group transform transfer budget finances
The Premier League has confirmed none of the 20 clubs in the tournament this season have failed PSR this season.
The deadline for the league to announce sanctions against clubs passed last week, meaning Everton met all PSR obligations from last season.
Last year David Moyes suggested there was ‘one more bill to pay’ before the PSR deadline on 30 June and much of Everton’s transfer business was completed after that date and it seems the club successfully met those obligations.
It means the Friedkin Group, who bought the club from Farhad Moshiri in December 2024, have transformed the finances of Everton and opened up spending opportunities that have not been available to the club for several years.
Everton’s PSR situation was complex. The calculation is made on a rolling three year period with clubs unable to lose more than £110m across the period. However, clubs can write off some losses such as infrastructure and spend on the women’s team, to bring down the PSR losses figure.
For the most recent PSR deadline in summer 2025, Everton’s figure included a £62.5m loss in 2023, plus a loss of around £30m in 2024. We do not have the 2025 figures yet but PSR losses must be close to zero for the year to pass.
It means Everton’s actual losses before PSR deductions will likely have dropped to as little as £20m for 2025, down from £52m in 2024 and £90m in 2023.
The improved financial situation is due to several reasons but the main one is the takeover by the Friedkin Group. The takeover allowed the Friedkins to pay off the horrendous payday loans used extensively by Moshiri and previous owner Bill Kenwright, which were costing the club upwards of £1m per week. The Friedkin’s instead have a more professional facility with respected lender JP Morgan.
Everton also trimmed the wage bill and removed several high earners from the squad, signed up high paying sponsorship deals with the likes of Castore, Christopher Ward, Stake and others to increase revenue, and sold their women’s team for around £30m last summer.
The moves, coupled with the estimated £50m per year revenue from the stunning new Hill Dickinson Stadium, means Everton were able to spend around £110m in summer 2025. The summer spend falls into the next rolling three year period of PSR, which removes the £62.5m loss of 2023.
That gives Everton plenty of wiggle room as the club need to make a loss of less than £62.5m to meet PSR obligations for the June 2026 deadline. With transfer fees amortised across the length of contracts that £110m spend will not all be PSR loss immediately, meaning there is probably still plenty of budget to spend in January or summer 2026.
Extra revenue will bump that figure up further, while things like league placings will deliver up to £1.6m per placing. Major deals with Pepsi, Budweiser, Davanti Tyres and Hill Dickinson will add huge revenue boosts year-on-year.
Everton CEO Angus Kinnear has talked bullishly about the summer. He said: “We will work towards identifying and executing opportunities that will make us stronger in the long term. But these opportunities will need to be exceptional, and we will avoid short-term fixes that will weaken our hand for phase two of our rebuild next summer.”
As the PSR deadline passes without incident it seems Everton can look forward to another summer of rebuilding from a sound financial footing.
*It is worth mentioning the Premier League will be transitioning to a Squad Cost Ratio (SCR) from 2026/27. While the calculations are based on squad cost versus revenue, not total losses, the principles remain the same. Everton’s increased revenue will help them reach the 85% threshold and spend more on improving the squad.
Last season Everton’s SCR was around 84% – before the Hill Dickinson Stadium revenue is included.