Premier League strugglers Everton recorded losses of £120.9 million ($157 million) in the last financial year, but are set to avoid being held in breach of profit and sustainability rules.

Figures released for the year ending June 2021 showed Everton were badly hit by another season impacted by the coronavirus pandemic.

Everton's losses over the last three years amount to £371.8 million, with Premier League rules stating a club is in breach of financial regulations if they make an adjusted loss of more than £105 million over a three-year period.

These latest figures come on the back of losses of £111 million in 2018-19 and £139.9 million in 2019-20.

Budget and transfer restrictions are the first sanctions which can be applied, but it has been reported there will be no penalties forthcoming due to the extenuating circumstances associated with Covid.

Everton retain the financial backing of billionaire shareholder Farhad Moshiri, who committed £100 million through a new share issue during 2020-21 and provided a further injection of £97 million after the end of the financial year.

The Merseyside club have also committed significant funds to getting their new stadium at Bramley-Moore Dock from planning stage to construction phase in 2021, the progress of which will not be affected by the new losses.

But Everton remain desperate to avoid the financial meltdown that would likely be triggered if the team are relegated this season.

Frank Lampard's side are just three points above the relegation zone with 11 games left.