Major financial crisis is on the cards at Everton – Finance Expert
We’re delighted to welcome football finance expert Dr Daniel Plumley as our exclusive columnist. Each week he’ll be giving his views on the biggest talking points at Everton...
Dan Plumley has insisted that it is fair to say that a “major financial crisis” is on the cards at Everton if they are relegated from the Premier League.
The Toffees currently have a wage bill worth £183million, with many of their current squad not set to have relegation clauses included in their contracts at Goodison Park.
Plumley shared that figure is currently 95% of their overall turnover, something that would go well above 100% if you drop into the Championship, which would leave Farhad Moshiri with a whopping bill.
“That’s always the stuff we deal with, you’re always thinking what will the fans make of this,” he exclusively told Goodison News.
“That term major financial crisis, for me, is a relevant term to use and I’m not trying to say that lightly.
“I know there is a big impact there on the fans, but you look at that wage bill, it’s £183million, it’s 95% of the turnover already and if there are no relegation clauses in those contracts, and the wage bill is already 95% of the turnover, you’ve got a big problem in the Championship because you’re going to have £60million at least off the revenue line so your wages to turnover is going to go way above 100%.
“So, someone has got to foot the bill, and that is probably the owner but we know that he is trying to bring investment in and he’s not willing to commit as much as he has in the past.
“You’ve got a real problem, you could sell some players, we can expect Everton if they go down to sell a couple of players. You’ve still got to compete on the pitch as well though, you want to get back out of the Championship and into the Premier League which is not always easy.
“That term major financial crisis is one that will worry the fans, but I genuinely think in the short term when you look at the wage bill and the finances over the past three to four years, it is going to be a real challenge if they go down.”
Crisis has been the word surrounding Everton for many years now, with their fifth successive financial loss posted in the last week, that isn’t changing any time soon.
Moshiri needs to find an answer to these mounting questions.