Liverpool have been doing well on the pitch, but they have also been making progress off the pitch. Their latest accounts relate to the first full year that Brendan Rogers was manager and they show a considerable improvement in the club’s financial position. This was in spite of the fact that they did not have Champions League football which is usually worth about £30m.
Liverpool have been doing well on the pitch, but they have also been making progress off the pitch. Their latest accounts relate to the first full year that Brendan Rogers was manager and they show a considerable improvement in the club’s financial position. This was in spite of the fact that they did not have Champions League football which is usually worth about £30m.
While the Reds turned in an annual loss of almost £50m last year, turnover to the end of May last year broke through the £200m mark to £206m – a rise of nine per cent. Meantime club bank debts decreased by 29 per cent – due in the main to a £46.8m interest free, inter company loan to the Reds via owners Fenway Sports Group. That was used to pay off debts relating to previous failed stadium projects under the ousted Hicks and Gillett regime.
FSG have now reduced Anfield’s debts by £200m since taking over in October 2010. Total bank debt was £45.1m, down by £17.7m.
Moreover, to place the loss in context, there was an operating profit of £15m. The overall loss was due to player sales and writing down player contracts.
Despite the club dropping three places to 12th in the all important Deloitte Money League, Liverpool are the highest placed club not in the Champions League. Commercial revenue now accounts for 47 per cent of all revenue, a figure only bettered by teams in the money top six.
Commercial revenue accounted for £98m, followed by television money on £64m and £45m from match day receipts. To put it another way, match day revenues accounted for 22 per cent of the total which shows how important other forms of revenue are to top clubs.
Much of this money is earned in global markets where Liverpool remain a strong brand. The redevelopment of Anfield should boost matchday revenue from corporate boxes.