Liverpool FC made a £19.8 million (€23.1 million) loss in the financial year ending May 31st, 2016, despite overall revenue increasing to a record £301 million, the club's latest accounts reveal.
Despite failing to qualify for the Champions League – and Liverpool were the only club in the top ten of Deloitte’s financial league not to do so – both media and match-day revenue increased at Anfield, largely as a result of Jurgen Klopp’s team reaching both the Europa League and Capital One Cup finals.
Media revenue rose by £1 million to £123.6 million, match-day income by £3.4 million to £62.4 million and commercial revenue was down by £700,000 to £115.7 million.
The decrease was attributed to the construction of the new main stand at Anfield restricting access to the stadium on non-match days, although ten commercial partnerships were signed during the period.
Overall revenue rose by £3.9 million to a record £301.8 million, the accounts reveal, but new signings such as £29 million Robert Firmino and £12.5 million Nathaniel Clyne contributed to a loss before tax of £19.8 million.
The accounts also include the professional contracts awarded to 12 youth academy players. Liverpool launched new websites in Arabic, French and Spanish and its social media following climbed above 50 million.
Player transfer fees
Andy Hughes, Liverpool's chief operating officer, said: "These results demonstrate the solid financial progress that's been made over the past six years under the leadership of FSG (Fenway Sports Group) with continued investment in the playing squad and the completion of the main stand.
“The increase in the underlying revenue adds further strength to the club’s financial position despite the cost of football rising with player transfer fees, wages and agents’ costs.
“During this reporting period, we also agreed a new five-year credit facility which further secures the club’s long term financial stability. All three main revenues streams continue to show strength and commercial revenues held firm irrespective of the impact of the main stand at Anfield.”
Liverpool’s finances for the current year will be improved by revenue from the new main stand, that opened in September, and the record broadcasting deal that has come into effect.
Hughes added: “The investments from this ownership have been a key factor to our financial and global progress.
“We have seen continued investment in the playing squad; the expanded main stand; the new flagship retail store opening later this year; fully refurbished retail stores in Liverpool and Belfast; and we are consulting on a proposed development at our Academy in Kirkby to bring together the first team and our young players.
“These investments all contribute to further progress and strengthen the club’s financial position which ultimately serves to support all of our football ambitions.”
-Guardian
