Rival chairman issues statement over FFP and manager ‘could walk’ as Everton watch on

The chairman of one of Everton's Premier League rivals has admitted they are sailing close to Premier League profit and sustainability restrictions.

The Toffees have been in a financial predicament themselves over the past few years. The club has posted combined losses of more than £400 million since 2019 and in March, the Premier League referred Everton to an independent commission for an alleged breach of Financial Fair Play rules during the 2021-22 season. The Blues have insisted that they are innocent and are 'prepared to robustly defend' their position.

Everton have battled relegation over the past two years and Sean Dyche admitted after last season's survival that there would not be a 'quick fix'. That could mean the Blues are again in somewhat of a battle at the lower end of the table in 2023-24.

Newly-promoted pair Luton Town and Sheffield United are the favourites to go down in 2023-24 - although Wolves find themselves precarious situation.

Players including star midfielder Rúben Neves, Nathan Collins, Raul Jimenez and Conor Coady - who spent last term on loan at Goodison Park - have been sold while Adama Traore and Joao Moutinho departed at the end of their respective contracts. Yet the only senior new faces the Molineux club have made so far in the summer transfer window is Matt Docherty returning on a free transfer following his Atletico Madrid exit and back-up keeper Tom King joining from Northampton Town.

Football Insider has suggested that manager Julen Lopetegui could be ready to walk away just eight months into the job, having steered Wolves to a 13th-place finish after succeeding Bruno Lage last November.

The club's chairman Jeff Shi has penned a letter to supporters insisting that owners Fosun are not looking to sell up - but detailed that there are financial fair play issues to deal with.

Shi said: “As we approach the start of a new season, I would like to take this opportunity to clarify a number of things for you. First of all, Fosun remains committed to Wolves and has never had any plans to sell the club. The club is a long-term project and an important one for Fosun.

When we were in the Championship, when we were in the pandemic, when we’ve faced all kinds of challenges, on or off the pitch, the owners have always done their best to support us. They also share our happiness and excitement with every achievement, or positive step we make at the club, no matter how big or small.

“As the owners and management of the club, one important thing we must learn and follow is the Premier League’s rules on profit and sustainability (formerly called financial fair play or abbreviated to FFP). Before the end of 2023/24 season there will be an annual test and we are going to make sure we pass it, as we have done in the last five seasons.

“FFP sets a profit and loss limit for three rolling years, with a loss of £105m the threshold. We were very comfortable on FFP during the years just after promotion and before the covid pandemic, because of a relatively low wage bill, low-cost signings from the Championship and relatively stronger finishes in the league and Europe.

“After a longer stay in the Premier League, we are now at a stage where we must pay even closer attention to FFP and manage it well. The first reason is the inevitable impact of covid on our revenue. Though we’ve put those years behind us, we still needed to invest more afterwards to fill the gaps caused by the pandemic, especially on squad strengthening.

“Secondly, we once had a fantastic squad, built in the Championship then brought into the Premier League. However, after the ageing of some players and unexpected injuries, that squad had to be evolved year by year with a significantly increasing wage bill and player acquisition costs in the best, but also most expensive, league in the world.

“Finally, in recent years we have made a lot of long-term investments into young talent that may not play for our first-team immediately, and those investments increase our asset value in the balance sheet but impact our profit and loss, especially in a net investment phase.

“An additional factor to consider in our FFP management is that last January we invested much more highly in the first-team than we had anticipated, bringing in six players. It was a very unusual winter window for us, and it literally advanced the investment room originally left for this summer. The positive thing is that FFP is based on a rolling number, season by season, so if we do manage it well this summer, next summer we will be more free financially.

“We have been preparing for this challenge for a long time. Since the beginning of 2020/21 season, we have been consciously signing players and promoting academy talents to make us ready to replace important players when needed. We know some signings might need a longer time to grow and adapt before they can play important roles in the first-team, but the chance will come sooner or later because the squad is evolving every year. This summer, I hope, is a window where we may need less new signings, since many players in the current squad have developed well enough to take more important roles in the team.

“To manage the evolution of a squad is not easy and we can’t make every signing right, however patience, composure and a long-term view is crucial, for growth of players and for the build of a squad over time.

“The Premier League is very unpredictable and challenging, especially with new types of ownership at some clubs bringing unprecedented investment, with excellent people coming to this league as our competitors and also in a post-covid global economy. However, I am very confident in our squad, but we do need to be humble with a challenger attitude, as if it was our first Premier League season all over again.

“In my experience, the performance on the pitch is not only defined by simple additions of players, but by team spirit, chemistry, momentum, morale, leadership, tactics, training, hard work and a variety of other factors. It is more about how we assemble, incentivise and guide the squad, therefore the work from the head coach and all the staff supporting him is also crucial.

“Our head coach has undoubtedly done an excellent job since joining us last November. We hired him and his team at a very difficult moment and without a doubt they succeeded in the aims we set for them. Now, together with the players and all support staff, they are working hard again to prepare for the upcoming campaign.

“Throughout the last seven seasons, I have never had a month where everything was perfect. The reality of running a football club is to continuously face issues and challenges, and then tackle them with solutions. FFP is one of the more short-term and benign challenges we have faced. The club has gone through much more difficult tests in the past and will do so again in the future. However, we are still progressing every day, because we never lose; we win or we learn, as one pack.”

Everton welcome Wolves to Goodison Park on Saturday 26 August.