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Eyebrows were raised when Everton reported their latest set of financial results.

Irrespective of the fact the accounts covered a 13-month period rather than the standard 12 - after Everton shifted its financial year end to 30 June from 31 May - the almost £112million loss is evidence that the club has spent, and indeed continues to spend, far beyond its means.

This would not have been a problem 20 years ago but spending regulation, governed by both the Premier League and UEFA, have put a cap on losses.

Punishments ranging from fines to points deductions to relegation await those who breach the rules, even with a benefactor owner in place to underwrite losses.

It could be argued that Everton are, in fact, the poster child for the argument against Financial Fair Play.

Farhad Moshiri, transfer investment, long-term planning and Everton's record financial losses explained

In Farhad Moshiri, the club have a majority shareholder who has the means to mop up financial losses.

And in football, in order to be competitive, it is virtually impossible for a club outside the 'big six' not to run up sizeable losses in order to compete.

In order to grow revenues, a club outside of the established six has to improve the quality of its playing squad and staff, which requires investment, which leads to losses.

FFP would allow you to spend £1billion on a stadium, as infrastructure is not calculated in the losses, but how do you grow a fan base to fill it without a successful team?

The fact is an ambitious club such as Everton, who must make losses in order to compete, in the short-term at least, are prevented from doing so is perhaps evidence that FFP rules have created the 'closed shop' that critics claim.

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Regardless, losses have run as high as they have due to the investment of Moshiri since he took up a majority position in the club back in 2016.

Up to the end of June 2019, Everton had £300milliion worth of shareholder 'loans' on its books from Moshiri's company, Bluesky Capital, which are classed as equity. A further £50million was loaned in this way after the year end.

Arguments differ on how wisely Moshiri's millions and Everton's organic income - broadcasting, commercial, matchday - have been used, but since 2016/17, Everton's net has been astronomical, compared to previous years.

What is fair to say is that the more recent acquisitions, Richarlison, Lucas Digne, Yerry Mina, Bernard and Andre Gomes, are pulling their weight as Everton look to climb the table and challenge the top six.

Meanwhile, smart investments like John Stones, Romelu Lukaku and Idrissa Gueye - sold at many multiples of their original purchase - have helped the club to offset its losses a little.

What the national media said about Farhad Moshiri's Everton takeover

But in the last four years, Everton's net spend has run up to more than £190million - this for a club that still cannot lay claim to a turnover of more than £190million, despite great efforts to grow commercial operations in recent years.

The club's wage bill has soared from £84million in 2015/16 to £160million last season; and in the same timeframe the club's annual amortisation charge - the accounting method for costing player transfers - has quadrupled from £22.4million to £87million.

Everton's investment has not allowed it to rise higher than seventh place in that time, almost underlining the rigidity of those sides regularly at the top.

In fact, the team that finished sixth last season, Manchester United, had revenues more than three times greater than Everton at £627million.

None of the sides have annual income below £380million, or double what Everton can lay claim to.

The need to offload expensive players, and substantially grow its revenues via other channels, remain key to Everton providing the paper profits necessary to fall within the FFP bracket.

For 2019/20 losses are set to fall substantially as the club grows revenues via the latest TV and new commercial deals while making significant gains from selling players, including Gueye, Ademola Lookman, Nikola Vasic and Henry Onyekuru.

This will give Everton the breathing room to reassess its position and weigh up the scale of its investment while complying with FFP.

In the longer-term, Everton's income will grow dramatically, should the club's plans to move into the 52,88 capacity Bramley-Moore Dock Stadium by 2023/24 come to fruition.

This will aid Everton's ability to comply with FFP greatly but the club cannot afford losses of more than £100million again.