Everton chairman Bill Kenwright (left), manager Carlo Ancelotti (centre) and majority shareholder Farhad Moshiri (right)
Everton have announced record losses of £111.8m for the year to June 2019 but say they are "committed to operating in a financially sustainable manner".
The losses have been adjusted for a 13-month period to incorporate when players' contracts come to an end.
But after a £30.6m profit in 2017 and a £13.1m loss in 2018, the latest figures show the alarming rate of spending under majority shareholder Farhad Moshiri.
Premier League profit and sustainability rules allow for a £105m loss over three years, with Everton's total loss in the same timeframe at £94.3m.
That does not include spending on Goodison Park and the club's academy, which reduces that loss.
But spending on players has taken wages to £160m, with Everton's wage-to-revenue ratio increasing from 77% in 2018 to 85% for last season.
Moshiri has spent about £450m on players and changed manager four times since he took over at the club in February 2016, leading to questions from fans about the club's sustainability.
The club's plight has not been helped by a poor start to this season, which led to the sacking of Marco Silva and his replacement by former AC Milan, Real Madrid and Chelsea boss Carlo Ancelotti.
Everton sit 11th in the Premier League, 11 points behind fourth-placed Chelsea.
But the club said their net debt had been reduced from £65.7m to £9.2m over the past year because of a 40% growth in commercial revenue and loans from Iranian Moshiri.
The club also recorded their second-highest turnover of £187.7m, despite not competing in Europe.
Everton chief executive Denise Barrett-Baxendale said: "We have been aware of and planned for the impact the investment would have on our short-term profitability and this is part of a long-term sustainable business plan that demonstrates our commitment to operating in a financially sustainable manner."
Barrett-Baxendale also revealed that Russian billionaire Alisher Usmanov has paid £30m to secure an option on the naming rights of the club's new stadium at Bramley-Moore Dock.
Usmanov's company USM Holdings already sponsors Everton's training ground at Finch Farm.
Everton are awaiting planning permission for the £500m stadium, which they hope will be granted this summer. They hope the stadium will be completed by 2023.
Together with further investment in the squad and increased revenues, the club believe they can challenge for the top four in the Premier League and for European honours.
"We are working tirelessly to be a club which fits with the very best in world football," added Barrett-Baxendale.
Source: bbc.com