New commercial deals are key to Liverpool’s continuing success as the club prepares for the Champions League. The constraints of the stadium, and the financial situation of the fans, means that ticket sales cannot generate much more revenue. The club is raising average adult season ticket prices next year by the rate of inflation.
The share of Premier League central revenues has gone up from £55m in 2012-13 to £97.5m. That will go some way to overcoming a loss of £49.9m in 2012-13, although there have been substantial transfer expenditures this season.
New commercial deals are key to Liverpool’s continuing success as the club prepares for the Champions League. The constraints of the stadium, and the financial situation of the fans, means that ticket sales cannot generate much more revenue. The club is raising average adult season ticket prices next year by the rate of inflation.
The share of Premier League central revenues has gone up from £55m in 2012-13 to £97.5m. That will go some way to overcoming a loss of £49.9m in 2012-13, although there have been substantial transfer expenditures this season.
Manchester United has led the way in commercial deals with its sophisticated marketing operation, but Liverpool has a strong presence in Asia and in the US where it will undertake its seventh preseason tour this summer.
The fact that Fenway Sports Group, Liverpool’s owner, owns other sports teams, notably the Boston RedSox, is a help. US sportswear company Warrior Sports, the baseball team’s kit supplier, is now Liverpool’s kit supplier. Dunkin’ Donuts who have signed up recently was already a Red Sox sponsor.
Commercial revenues are growing, up from £63.9m in 2011-12 (a 10 month period) to £97.7m in 2012-13. In addition to the Dunkin’ Donuts, deals have been announced in recent months with Subway, Indonesian airline Garduda, Indian mobile phone company Xolo and Vauxhall. Another five will be announced next season.
However, one should not exaggerate the impact of the Champions League. Liverpool do not sell specifically around the Champions League, although clearly it is a plus factor. What they focus on is the global fan base estimated at 580 million.
Although Liverpool have not ruled out a naming rights deal for the redeveloped Anfield, it is more likely to follow the model used by the Red Fox at Fenway Park which sells naming rights to sections of the stadium. This may not maximise revenue, but it preserves the integrity of the historic name.