Net debt at Liverpool now stands at £87m and the club lost £40.5m in the ten months to 31 May 2012. This compares with £49.3m in the previous twelve month period with the club changing its accounting dates to coincide with the football season.
Essentially the club is paying out for expensive signings in the first year of Fenway Sports Group’s ownership with the emphasis now on what managing director Ian Ayre described as a ‘frugal’ and ‘prudent’ transfer strategy in which talented players are brought in on sensible contracts.
Net debt at Liverpool now stands at £87m and the club lost £40.5m in the ten months to 31 May 2012. This compares with £49.3m in the previous twelve month period with the club changing its accounting dates to coincide with the football season.
Essentially the club is paying out for expensive signings in the first year of Fenway Sports Group’s ownership with the emphasis now on what managing director Ian Ayre described as a ‘frugal’ and ‘prudent’ transfer strategy in which talented players are brought in on sensible contracts.
At £140m the wage bill accounts for around 70 per cent of turnover. That is above the recommended level of 50 per cent, but other clubs have worse figures. However, revenue was up £5m to £187m despite an absence of European competition, reflecting success in the two domestic cups. Commercial revenue streams are looking strong and are certain to improve further as new deals kick in.
Fenway Sports Group has now lent the club £71m since it took over, although it intends to get repaid. It lent £47m interest free to repay part of the club’s bank loans which in May stood at £70m.
A loss of £1.7m was made on transfers compared with a profit of £43.3m a year ago. A painful line in the accounts relates to termination payments of £9.6m to Kennly Dalglish and other staff.
Football journalist David Conn has tweeted that the new Premier League TV deal income combined with financial fair play rules will enable the club to staunch the £40m losses, but Liverpool will still be behind Manchester United and other top clubs.