Everton’s financial problems highlighted by the New York Times

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Everton risk being left out of top flight football long-term with the danger they find themselves in, amid a report over new UEFA financial rules.

The New York Times reported last night that the European governing body is set to introduce new ‘financial sustainability regulations’, with story author Tariq Panja explaining in a Twitter feed that the rules would require that salaries and amortization of transfers not exceed 70% of income.

the Echo of Liverpool report that according to the Toffees’ most recent accounts, their wage bill represented 88.6% of their turnover, putting them immediately in the crosshairs of the new plans if they were to pursue European ambitions again.

UEFA would be able to impose fines, suspensions from competitions and demotions between the Champions League, Europa League and Europa Conference League for misconduct.

the NY Times said report, via the Echo: “To allow teams to adapt to the new regulations, the new rules will be imposed over time: clubs will be able to spend up to 90% of their income before this figure is reduced to its permanent level of 70% within three seasons”.

How did we come here?

The report sheds a very unflattering light on the situation that has developed at Goodison Park under the ownership of Farhad Moshiri.

The club are already close to breaching Premier League rules on allowable losses, but would be miles away from being on the safe side of the new European regime.

Football finance expert Kieran Maguire claims in a response to Panja on Twitter that when transfer amortization is included, the Toffees’ already league-worst ratio becomes an abysmal 136% of revenue.

Panja reports that English clubs should be in the best position to continue spending, but with Everton already in a major mess, that doesn’t really apply to them.

Having lost significant income with the necessary severance of ties with Alisher Usmanov after the Russian invasion of Ukraine, the percentage is likely to still be very high.

This is despite transfer spending which has fallen off a cliff this season, as well as results, after year after year of costly flops arriving on Merseyside.

And the catastrophic prospect of relegation to the Premier League still looms on the horizon.

With that, the club face the prospect of being decades away from the level of challenge for Europe that was the norm until last season.

The new stadium at Bramley Moore Dock becomes all the more vital in terms of revenue generation, but the threats to the project due to loss of sponsorship and possible relegation become even more serious.

The club is struggling and major changes are needed behind the scenes, but it may already be too late.

In other Everton news, a European giant is to contact the club to send a player back to Goodison.

Be sure to follow Goodison News on Facebook for 24/7 updates on Everton as well as more exclusive interviews with Kevin Campbell.

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