Liverpool F.C. bruised financial health

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The Premier League team Liverpool F.C. recently filed its annual financial accounts for the year to May 31^st, 2024 which saw the club achieve more than £300 million in commercial revenue for the first time but recorded an overall loss of £57 million.

‘L.F.C.’ stated that the media revenue dropped by £38 million which is mainly related to the club’s participation in the Europa League (the second-tier competition of European club football) competition compared to the Champions League (an annual club association football competition contested by the top-division European clubs) in the previous season. This was partially offset by increased Premier League media revenue as a result of stronger on-pitch performance in the 2023-2024 seasons.

The Liverpool F.C. is a professional football club based in Liverpool, England (UK). The club competes in the Premier League, the top tier of English football.

The Anfield is a football stadium in the area of Anfield, Liverpool, England (UK) which has been the home of the Liverpool F.C. since their formation in 1892. The stadium has a seating capacity of 61,276 making it the fifth-largest stadium in England.

‘L.F.C.’ further stated that the new Anfield Road Stand opened in this reporting period and a higher number of competitive games played at Anfield contributed to a £22 million increase in matchday revenue. But it was the commercial operations that had the largest uplift in revenue increasing by £36 million to £308 million with strong growth in partnerships and retail.

Records were also broken across the club’s digital infrastructure with the Liverpool F.C. becoming the most-engaged Premier League club generating 1.5 billion social media fan engagements.

Despite the increase in revenues the administrative costs increased significantly to £600 million which is mainly related to salaries and overhead costs across the club which supported the increase in commercial revenues and the increased number of matchdays compared to the prior period.

Maintained Jenny Beacham, Liverpool F.C.’s Chief Financial Officer, “Operating a financially sustainable club continues to be our priority and, with the continued increase in costs, it’s essential to grow the income streams year on year to maintain financial stability. The success of our commercial operations, together with the opening of the new Anfield Road Stand, has increased our revenues during this reporting period which demonstrates our desire to continue to compete at the highest levels of football in the men’s and women’s games. The global appeal of this football club continues to be phenomenal and is the underlying strength and opportunity we have for continued growth. We also take our social responsibilities seriously using our global appeal to increase our community impact and sustainability efforts in which we are leading the way across the football industry.”

Added Beacham, “We will continue to operate in accordance with football’s financial rules and regulations while maintaining investment opportunities in our operations, infrastructure and players. Our focus right now is to finish this season as strong as possible, both on and off the pitch, to fulfill our collective ambitions for success.”
 

Pre-tax Loss

‘The Guardian’ stated that the club recorded a pre-tax loss of £57m. It made a pre-tax loss of £9m in 2023 and a £7.5m profit in 2022. Liverpool’s bank debt decreased by £10m to £116m.

The administration costs mainly cover salaries and overheads which have increased by 88 percent since 2018. Then the figure stood at £320m. The matchday costs have risen by almost 80 percent in the past eight years.

‘The Guardian’ further stated that the matchday revenue increased by £22m to £102m thanks to the opening of the new Anfield Road Stand and a rise in the number of competitive games played. The biggest uplift was in commercial operations – up by £36m to £308m with strong growth in partnerships and retail. Liverpool signed four new global partners in 2023-2024 – the United Parcel Service (UPS –an American multinational shipping and receiving and supply chain management company), Google Pixel (a brand of portable consumer electronic devices developed by Google), Peloton (a fitness and exercise brand), and Orion Innovation (system software company) – and made record revenues across seven global retail locations including a new store in Dublin (Ireland).

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