Everton’s widening losses are a result of the club’s emphasis on improving its league position, according to chief executive Robert Elstone.
The Toffees reported a net loss of £9.1m in the 2011-12 season, compared with a loss of £5.4m a year earlier, with turnover down slightly at £80.5m.
Wages were the biggest expenditure for the club last season, at 75% of turnover. It spent £63.4m on players’ salaries, up from £58m a year earlier.
But those extra expenses appear to be paying off, with strong season tickets sales and fine results on the pitch so far this season, and the Merseysiders said it expected better financial results for 2012-13.
“The club has demonstrated its commitment to first-team success with increased expenditure on player wages,” Elstone told BBC News.
“We continue to try to enhance our competitive position and, at the same time, manage cost base and debt levels effectively.”
Meanwhile, club owner Bill Kenwright insists he is also looking for fresh investment to boost spending power in the transfer market.
“My desire to find a person, or institution, with the finance to move us forward has not diminished,” he said.
“Despite the challenges presented by the global economic downturn, we remain positive and determined.”
Everton are currently in the hunt for a top-four spot in the Premier League and with it a chance to play in the lucrative Champions League next season.
After their 2-1 victory over Newcastle last night, the Toffees sit in fifth position, two points behind Chelsea in fourth.