Everton recorded a net loss of £9.1m for the 2011-12 season, it was revealed today with the publication of the club's annual results.
The loss was an increase of £3.7m from the £5.4m net loss made the season before, while turnover was down slightly from £82m to £80.5m.
Everton's poor start to last season played its part in contributing to a fall in gate receipts and season ticket sales while the Toffees were picked for fewer live TV games.
However, the Goodison Park side are confident the current financial year will bring better news, with season ticket sales up 6.4% and the club pushing for a top-four spot in the Premier League.
The biggest expenditure was the wage bill, which increased from £58m in 2010-11 to £63.4m last season, making it 75% of the club's turnover.
Everton's net debt remains largely unchanged at £46m, and chief executive Robert Elstone said: "The club has demonstrated its commitment to first-team success with increased expenditure on player wages.
"We continue to try to enhance our competitive position and, at the same time, manage cost base and debt levels effectively.
"To get through a challenging year with only minimal increases in overall debt whilst at the same time, based on the opinions of many experts, strengthening our first-team squad is testament to the skill, hard work and commitment of the manager, the chairman and all their support teams."
The new TV deal, which comes into effect this summer, should ease the financial pressure on Everton, while chairman Bill Kenwright continues to search for investors to help the club compete financially with their Premier League rivals.
He said: "My desire to find a person, or institution, with the finance to move us forward has not diminished.
"Despite the challenges presented by a global economic downturn, we remain positive and determined.
"My commitment to serve this football club to the very best of my ability remains a constant in my life and I am aware of the trust you put in me to do that."