Target of 777 Partners, Everton publishes balance sheet with deficit of more than R$500 million

Close to being acquired by 777 Partners, the same company responsible for Vasco da Gama’s SAF, Everton, from England, released the club’s financial statement for the 2022/2023 season with a deficit of 89.1 million pounds, around R$ 565 million.

The value is higher than that reported in the 2021/22 season. At the time, the number was 44.7 million pounds (R$283 million, according to the current exchange rate).

The chaotic economic situation experienced by Everton saw the Merseyside club docked six points at the start of this season for breaching Premier League financial rules. The situation could even get worse, as new punishments could occur for new financial violations.

Everton are in 16th place in the Premier League table, three points above the relegation zone. In a released statement, the club pointed to the “indefinite suspension of important commercial partnerships” as a factor in the accounts.

In 2022, Everton suspended its main sponsorship with companies belonging to Alisher Usmanov, a Russian tycoon who was sanctioned by the European Union due to the conflict between Russia and Ukraine.

The latest losses occurred despite Everton’s accounts showing a profit of £47.5 million from player transfers. Net debt increased to 330.6 million pounds (more than R$2 billion) due to the “significant investment” in the new stadium.

Turnover was 172.2 million pounds, just over R$1 billion. Premier League rules allow clubs to make a maximum loss of £105m over a three-year period or face sanctions imposed by the organisation.

In September 2023, 777 Partners reached an agreement to acquire 94.1% of Everton’s shares. According to the British press, the deal was worth more than 550 million pounds (R$3.3 billion).

However, officialization still depends on approval from the Premier League, the English Football Association (FA) and the Financial Conduct Authority (FCA), the United Kingdom’s regulatory body.

Amid the bureaucratic process, 777 has already invested around R$760 million in Everton in recent months.

The injection was for “working capital” and also to cover the costs of the Bramley-Moore Dock stadium, which is expected to be opened in the 2025/26 season. The total cost of the club’s new home could reach 760 million euros, just over R$4 billion.

Source: ESPN