Liverpool FC have reported a profit for the first time in seven years. The margin of pre-tax profit for the year ending May 2014 is only £0.9m, but it has a broader significance. It suggests that a club can challenge for a top four spot while still operating on at least a break even basis.
It is really increased revenues that have helped the club. They were up 19 per cent at £255.6m. Between 2009 and today, they have increased from around £170m to over £250m.
Liverpool FC have reported a profit for the first time in seven years. The margin of pre-tax profit for the year ending May 2014 is only £0.9m, but it has a broader significance. It suggests that a club can challenge for a top four spot while still operating on at least a break even basis.
It is really increased revenues that have helped the club. They were up 19 per cent at £255.6m. Between 2009 and today, they have increased from around £170m to over £250m.
Media revenues showed a particularly large increase, up 46 per cent to £100.9m. When the new Premier League television deal kicks in, these will rise even more.
However, commercial revenues actually bring in more at £103.8m. This is significant because it reflects how much Liverpool has sharpened up its act in an area in which Manchester United has enjoyed such a considerable lead.
This is something that reflects well on the club’s American owners because, together with the redevelopment of Anfield, it is the key to sustained long-term success. Liverpool are one of the few clubs that can genuinely claim to be a global brand and they need to make the most of this which is what they are doing.