Everton’s survival in doubt if relegated from the Premier League

Everton’s ability to continue as a going concern would be plunged into doubt in the event of relegation from the Premier League, the club’s latest set of accounts have revealed.

The bleak assessment, contained in the Everton directors’ report and from auditors Crowe UK LLP, came on Friday when the club announced losses of £44.7m for the 2021-22 season. The loss is a significant reduction on the previous year’s figure of £120.9m but arrived in a year when Everton made a £67.7m profit on player trading. Richarlison, Lucas Digne and James Rodríguez were among the sales that year.

Overall, Everton’s combined losses for the past three financial years stand at £305.5m. A club that is immersed in a second successive battle against relegation and has been referred to an independent commission over an alleged breach of Premier League financial fair play rules has lost a staggering £417.3m over the past four years.

Sean Dyche’s team are two points above the relegation zone having played more games than five of the teams below them. In the event of demotion to the Championship, the auditor’s report states: “A material uncertainty exists that may cast significant doubt over the group’s ability to continue as a going concern.”

Everton’s accounting notes add: “The club remains reliant on the support of its majority shareholder (Farhad Moshiri), who has provided a letter of support to the board confirming the intention to provide ongoing financial support for a period of no less than 12 months from the date of approval of the financial statements but this does not represent a legally binding commitment by the majority shareholder.

“The board are confident that if the club is relegated funding will be secured or refinanced and that they