Liverpool has announced that they incurred a loss amounting to the tune of £19.8m despite revenue of excess of £300m for the first time.
The club dropped into the red zone after two years in the black zone according to the club’s official accounts for the year ending, May 31, 2016.
Much of the loss is attributed to the investment in the first team squad and the compensation made to former manager, Brendan Rodgers and his backroom staff when he was sacked in October 2015.
The club bought Christian Benteke, Roberto Firmino among others suppressing their revenue and wage bill but the club are expecting to see “significantly improved results” for the current financial year.
The club recorded a record £301m, up from £297.9m from the previous year but the club recorded a a £60m profit last financial year thanks to the sale of Luis Suarez to Barcelona for £75m.
They announced that Commercial revenue has dipped by £700,000 to £115.7m partly as a result of work on the Main Stand restricting non-match day access; while matchday revenue increased by £3.4m to £62.4m thanks to income from a pre season tour to Australia and Asia and the team reaching the League Cup and Europa League finals. They also stated that media revenuecincreased by £1m to £123.6m.
Liverpool FC Chief Operating Officer, Andy Hughes is quoted as saying;
“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 was named among the Deloitte football money league top 10 [in ninth place] and was the only club that did not play in the Champions League last season but Hughes retraited;
“Since this reporting period, which is nearly a year ago, we have continued to make solid financial progress and we expect to see further growth in our revenues following the successful opening of the main stand and the new media deal”. “Our commercial operations continue to thrive through new partnerships, global retail growth and developing our international soccer schools, with our newest academy opening recently in Australia”.
“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”.
Liverpool host Arsenal on Saturday, 4th March, 2017 at 17:30GMT in Saturday Night Football.