By Euan Burns
For the second year in a row, football fans found themselves asking, “Could Everton really go down?”
This year, the situation looks perhaps even more grim. They are 19th with five games to play and even with a manager as experienced as Sean Dyche at the helm, it is extremely difficult to see where the points are coming from.
Fan revolt in Merseyside will be fierce if the Toffees go down to the Championship, but the club’s owners will be more concerned about what it means for finances. As their recent financial results have shown, they could be the hardest hit team of the three that go down.
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When was the last time Everton exited the Premier League?
Everton they were founder members of the Premier League in 1992, but their history in the top flight goes back much further.
The last time the Toffees were relegated from the top flight of English football was way back in 1951. This is uncharted territory for almost anyone within Goodison Park.
Why is relegation even scarier for Everton?
Everton are something of a financial conundrum for many fans because everyone knows they have financial problems, but they are also aware that they have been able to spend ridiculous amounts on players and are building a new stadium.
At the end of March, the club released their annual financial accounts showing losses of £44.7m for the 2021/22 season, the fifth season in a row they have recorded losses. Although it was a reduction from the £120.9m loss a year earlier, the Premier League has referred Everton to an independent panel over an alleged breach of profitability and sustainability rules.
Everton chief executive Denise Barrett-Baxendale has said the club is safe with majority shareholder Farhad Moshiri investing another £70m, but auditors are far more fearful for Everton’s future in case of relegation.
Everton fans take to the streets ahead of the Newcastle match | Alex Livesey/GettyImages“In the event of relegation, the club will request additional financial support from its majority shareholder,” they said in the report. “These matters indicate that a material uncertainty exists that may cast significant doubt on the group’s ability to continue as a going concern.”
A bit damned, ESPN said reporter Mark Ogden Sky Sports News: “Clubs are limited to £105m in losses over three seasons and their losses are probably three or four times that. Anytime Everton’s day comes, be it this season or next, it’s going to be tough for They.
“It is very unlikely that a points deduction could come before the end of the season given the timing, but if it is delayed until next season it could make it virtually impossible for them to stand next season which would mean going to the new stadium in the championship.
“I simply don’t see an easy way out for Everton. They have lived beyond their means. They have to find a way out and I don’t see one this season or next.”
What other money could Everton lose if they go down?
television offers
With the Premier League’s TV deals being so incredibly lucrative, it will be a real blow to the club to lose that money. In all honesty, when you factor in the above, losing your TV money pales in comparison.
The approximate figure the bottom teams in the Premier League are said to receive from TV this season is £90m. The deal with Championship TV will be significantly less than that.
Parachute payments
The parachute payments will obviously help Everton, although you can imagine them going directly to debt servicing rather than the playing squad. In their first season in the league, Everton were to receive 55% of the Premier League television deal they were enjoying, 45% in the following season and 20% in their third season.
Sponsorship Agreements
Everton can expect to earn significantly less from their sponsorship deals if they are relegated to the Championship. Existing deals will almost certainly have a clause allowing the sponsor to pay less money on relegation. Any new offers will also be at lower rates.
Everton are one of England’s most historic clubs | Chris Brunskill/Fantasista/GettyImagesWhich players could Everton lose in the event of relegation?
There are some players Everton can expect to lose if they are relegated this season. Jordan Pickford has been a top performer for Everton and has certainly earned the right to stay in the Premier League with another team. He will have many suitors, as will James Tarkowski.
The likes of Ben Godfrey, Amadou Onana, Alex Iwobi and Demarai Gray will feel they can play at a better level than in the Championship, while Dominic Calvert-Lewin would finally be able to secure a move away from the club.
This article was originally posted on 90min.com as How much money could Everton lose if they relegated from the Premier League.
