Everton will avoid any punishment from the football authorities, despite revealing a loss of £111.8m over the past 13 months.
That amounts to an increase in post tax losses of an eye-watering £98.8m on losses of the previous year, and raised fears the Blues could fall foul of Premier League profitability and sustainability rules.
Owner Farhad Moshiri though, injected more cash into the club in the form of loans, with the billionaire businessman taking his interest free lending to Everton beyond £350m.
That allowed the board to actually reduce debts to just £9.2m from the previous year’s borrowings of £65.7m.
And with Moshiri’s long-term business partner and multi-billionaire Alisher Usmanov stepping up his investment in the Goodison club through sponsorship and naming rights, the Blues remain solvent.
But the record losses over the past accounting period point to a deeper problem in meeting the club’s heavy outgoings, with a wage bill of £160m that is now almost 90 per cent of income.
And privately, the club’s financial experts admit that means income must be increased significantly over the next financial year, to avoid penalties from either FIFA Fair Play rules, or the Premier League regulations.
Insiders at the club point to the appointment of Carlo Ancelotti as proof Moshiri is serious about aiming for on-field success, to increase revenue streams.
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The decorated Italian coach was told qualifying for the Europa League this season is still the main aim, with the money from a European campaign vital to creating a stable and profitable base on which to build.
The Blues believe a top-seven finish will deliver not only greater Premier League income, and a place in Europe, but also commercial opportunities which will expand revenues significantly.
Ancelotti has been tasked with taking Everton into the European places this season, and in the medium term towards the top four.
Moshiri has promised funds during the January transfer window to bring in signings to achieve that aim – though his new manager will also have to sell in the summer in an attempt to balance the books.
In what was a fascinating and often heated AGM, Chief Finance and Commercial Officer Sasha Ryazantsev delivered an upbeat message despite the alarming headline losses.