Annual Report & Accounts 2017 Contents Review Page 6 • Chairman Page 8 • Chief Executive Officer Page 12 2016/17 Season Page 14 Accounts Page 42 • Directors and Advisors Page 44 • Strategic Report Page 45 • Directors’ Report Page 47 • Independent Auditor’s Report Page 48 • Consolidated Profit and Loss Account Page 49 • Consolidated Balance Sheet Page 50 • Company Balance Sheet Page 51 • Consolidated and Company Statement of Changes in Equity Page 52 • Consolidated Cash Flow Statement Page 53 • Notes to the Accounts Page 54 Note The Review (pages 6-13) and 2016/17 Season (pages 14-41) section do not form part of the statutory financial statements. 4 EVERTON FOOTBALL CLUB 2017 ANNUAL REPORT & ACCOUNTS 5 Review Chairman Bill Kenwright There’s no getting away from it – we’ve But while we had strong performances - in the future with Sandro Ramirez, had a really tough start to the campaign. and picked up points - at the champions Nikola Vlasic and Henry Onyekuru. So let me say a few words about that and against both Manchester clubs, our before I give you the current view of away record clearly needs improvement. And, of course, Wayne re-signed. the season these accounts relate to. At the time of writing, it’s 11 months since I have never seen such enthusiasm Introducing so many new players into we won on the road in the league and from a player to sign for us. Wayne our squad, an early start to our Europa that’s far from good enough. was desperate to come back and as League campaign and just about the hungry to achieve success with the Club most challenging Premier League fixture Losing in the early rounds of both cup he loves as he was when I first met him list we could have faced in the early competitions – especially at home - was all those years ago. How special it was weeks were all factors in what proved to also disappointing as, believe me, I know to see him score on his second Everton be a very disappointing opening. And, how much all Evertonians are longing league debut and for him to score his while our start was made difficult for all for silverware. first ever hat-trick for us, including one of his best goals. these reasons, myself, Farhad and all of Of course, the season was blighted by the Directors felt we had to take action. the serious injuries to Seamus, Yannick Losing Romelu was clearly a big blow for This was a really difficult decision for and Ramiro. As I’m sure they will know us. I can assure you we did everything us to make. We were all disappointed from hearing the fans singing their we possibly could to keep him. And, when to be in a position where we ultimately names while they’ve been out, we’re we couldn’t, we worked to find the best had to part with our manager after just all right behind them as they work hard possible replacement for him. This is no 16 months. We’re used to – and we like to recover. easy task, but one we’re fully committed - stability with our managers, so having to and will revisit in the 2018 transfer to part company with Ronald, Erwin, Busy windows windows. Jan and Patrick so soon after such a Bringing in Morgan and Ademola in the Gareth Barry, Darron Gibson, promising first season was difficult. January transfer window immediately But we made the decision – like every Tom Cleverley, Gerard Deulofeu, improved us, as did the emergence of Arouna Kone, Leandro Rodriguez, decision we ever make – in the best a number of players from our interests of the Club. Of course, I’d like Aiden McGeady and Bryan Oviedo all left Under-23s who are now regulars in us over the past 12 months. I would like to thank Ronald and his team for guiding our first-team squad. us to seventh position last season and a to thank each of them for the service place back in Europe. We wish them all We knew the summer was going to be a they gave to our Club in their time here. the very best for their futures. very important transfer window for us. Ladies and Under-23s success Farhad and I worked hard to secure the I’d also like to express gratitude on players Steve and Ronald had identified - Congratulations to Everton Ladies in behalf of myself, Farhad, the Directors and to bring them in as early as returning to WSL1. I wish you every and all Evertonians to David Unsworth possible. As well as equaling or success back in the league where for stepping in to take the team at such a breaking our transfer record three you belong. challenging time. David’s talent, ambition times in securing the impressive and Evertonian spirit is simply first-class talents of Jordan Pickford, Michael And what can I say about our Under-23s? and the commitment and dedication he Keane and Gylfi Sigurdsson, we Our champions on and off the field … showed when accepting the challenge added experience in Davy Klaassen Our kids are more than alright! speaks volumes. David is now back and Cuco Martina, while also investing with his Under-23 squad – and we have 2016/17 was a simply magnificent season welcomed Sam Allardyce as our new for our Under-23s. Becoming Premier Manager. We wish him the very best League 2 Champions is an achievement of success in his efforts to take our “We knew the summer that shouldn’t be underestimated. I Club forward. was going to be a very watch that league and it is fiercely competitive. The job was also made 2016/17 important transfer more difficult by the number of players Looking back to the 2016/17 season, progressing through to our first-team Goodison became our fortress again, window for us. Farhad or gaining valuable experience out on with only two home league defeats. loan. I know thousands of you got behind It was great to see the loyalty of our fans and I worked hard to ‘our boys’ throughout the season and rewarded with results and performances secure the players I was delighted to see so many of you at Goodison we could all be proud of. The make the trip to Aldershot on a Friday courage and determination we showed Steve and Ronald had night for a match against Chelsea as in beating Arsenal was undoubtedly a we approached the finishing line of a turning point in the season, while the identified - and to thrilling season. Although we didn’t exuberance that led to our demolition of quite finish the job in Hampshire that high-flying Manchester City was without bring them in as early night, it was apt that we ultimately lifted question our best performance on as possible” the trophy at Goodison – and an added home soil. bonus that it was in front of ‘the other lot’! Congratulations to every player 8 EVERTON FOOTBALL CLUB 2017 ANNUAL REPORT & ACCOUNTS 9 who played their part in the success and a new European Betting Partner in colleagues at the City Council - are all Forever Golden and, of course, huge respect to ‘Unsie’ William Hill, while the introduction of working hard to deliver. In formally In February 2017, we lost one of our and ‘Ebbo’ for the talent, dedication our first Sleeve Partner in Angry Birds securing land in November this year, greatest ever players - Alex Young. and incredible passion they have shown and a new Main Partner, SportPesa, we removed one of the significant “To be supporting As I said at the time, from my position in driving the team to glory. Over the will contribute to further growth in the hurdles and move another step closer to in the Boys’ Pen to my position in more than summer, we’ve also been investing in coming years. achieving our dream… the Directors’ Box, I have never seen our Under-23 squad, bringing in 15,000 people each Of course, the chance to grow further, anybody like him – and I never will. Lewis Gibson, Josh Bowler, Dennis As well as welcoming our new partners, is made more possible by Farhad’s Alex Young had a unique class about Adeniran, Boris Mathis and Nathangelo I would also express my sincere year through investment and the improved financial him, on and off the field. While it is Markelo, as well as Anton Donkor for a gratitude to Chang for continuing position he has put us in. The personal incredibly sad that he’s no longer with second loan spell. We wish them all the their relationship with us through their 44 programmes - investment he has made means that us, I was delighted he came back to best of luck in defending our PL2 crown. community partnership. Chang was a fantastic Main Partner for 13 years, the the Club is now debt free, with all our Goodison last November to meet the while also supporting Any Everton player scoring any goal fills longest main partnership in the history previous loans now repaid. We have fans who idolised him one last time. 2,000 other charities us with pride. But the winning goal in a of the Premier League, and we will been able to invest in our playing squad, They told him what he meant to World Cup final? Well done to Dominic remain frends forever. renovate USM Finch Farm and revamp Evertonians and I know that will have - is truly humbling” for that – and to Jonjoe, Ademola, Kieran parts of Goodison Park.