Liverpool announce £19.8m loss during the 2015/16 season despite record revenue streams
Liverpool have announced that despite record revenue streams, the club still made a £19.8m loss during the 2015/16 season.
The majority of the money set-aside to build Anfield’s new main stand does not feature in the results, while the period does not take into consideration the huge financial windfall experienced by all Premier League clubs following the latest Sky television deal.
Liverpool have explained the deficit by rising football related costs on transfer fees, wages, contract renewals and payments to agents. Included too was the price of sacking Brendan Rodgers and hiring Jürgen Klopp as his replacement, making the German the best paid manager in the club’s history.
For context, it is worth remembering that in November 2015, Liverpool were revealed as the highest spenders on agents’ fees in the Premier League, having paid out more than £14.3m over the course of 12-months, which included a summer where Roberto Firmino, James Milner, Nathaniel Clyne and Christian Benteke were recruited, though Benteke has since left for Crystal Palace.
Liverpool included in a statement that it is the only club in the top ten of the Deloitte football money league not competing in the Champions League and therefore interpreted its financial performance as a demonstration of ‘the strength of its commercial operations to support reinvestment into the playing squad.’
The latest figures arrive at a time when many supporters have questioned owners Fenway Sports Group and Klopp over the club’s failure to sign any players in January, a month that saw Liverpool’s title hopes melt away.
The press release stated that the overall revenue had increased to a record £301m, continuing the year on year growth since Fenway took ownership of the club in October 2010. This involved a £3.9m revenue rise from the season before.
Media and match day revenue had increased as a consequence of the club reaching two cup finals where Liverpool lost as well as a pre-season tour in Asia and Australia. Meanwhile, ten new commercial partnerships were forged and another four continued.
Andy Hughes, who was appointed as Liverpool’s new chief operating officer last month following restructuring at the club’s Chapel Street business offices, said, “These results demonstrate the solid financial progress that’s been made over the past six years under the leadership of FSG with continued investment in the playing squad and the completion of the main stand.
“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.”
Hughes added: “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.
“Being able to connect directly with supporters around the world is extremely important and a key part of our digital strategy. We continue to see more and more supporters joining our channels and we are approaching seven million followers on our global Twitter account.
“These investments all contribute to further progress and strengthen the club’s financial position which ultimately serves to support all of our football ambitions.”
