Liverpool confirm latest accounts as FSG emerge from pandemic in strong financial position
Strong growth in Liverpool’s media revenue has seen overall losses reduced to just £4.8m in their latest accounts.
This means the club’s pre-tax loss tally is down £41.5million from the previous year’s results.
In new figures released on Friday – a period covering the Reds’ 2020 Premier League title win after a three-month break from play – Liverpool said their net profit had fallen by £3m to £487m sterling.
The financial results, which cover until May 31, 2021, inevitably have a huge impact on matchday revenue, which is down nearly 95% to just £3million.
Jurgen Klopp’s side have played almost the entire 2020/21 campaign behind closed doors and could only accommodate 10,000 supporters for last season’s final game against Crystal Palace.
However, those losses were offset by growth in the media and business areas, with the Reds posting strong numbers in both sections.
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Media revenue rose by £64.5m to £266.1m, while commercial figures rose by £0.2m to £217m.
The rise in media revenue is linked to the extension of the Premier League season into 2020, when action resumed at the end of June and the Reds played their final nine games of the season during the qualifying period.
Those nine games were televised on Sky Sports or BT Sport, with Liverpool playing seven as champions of England.
The impact of the COVID-19 pandemic halted financial progress in areas such as retail stores and stadium and museum tours, but a total of 13 new partners – including the first-ever kit deal with Nike – massively helped.
Their partnership with the world’s biggest sportswear manufacturers officially kicked off in August 2020 and immediately led to record kit sales which saw the Reds sell the third most shirts in Europe in 2021.
According to research by Euromericas Sport Marketing Group, Liverpool sold 2.45 million units, behind only Real Madrid (3.05 million) and Bayern Munich (3.25 million) last year.
The pre-tax loss has fallen from £41.5m – to just £4.8m – and figures show the club appear set to emerge from a period of deep financial uncertainty in a relatively strong position ahead of time. the future.
Last year it was revealed the club had lost £59million in media revenue and £13million in matchday revenue in just three months of 2020, while the pre-tax loss figure stood at £46 million.
Almost 12 months after these returns, Liverpool appear to be on a much more stable footing.
The period covers the arrivals of Thiago Alcantara and Diogo Jota, who joined in September 2020 for a combined fee of up to around £70million, while a dozen contract renewals include Virgil Van Dijk, Fabinho, Trent Alexander -Arnold and Harvey. Elliott are also taken into account.
As a result of the pandemic, mobile transactions increased by 89% on the club’s online store, while three new physical stores were opened in Thailand and Singapore.
Liverpool chief executive Andy Hughes has underlined the strong position the club find themselves in on the other side of the global pandemic as work continues on the Anfield Road expansion nearly 18 months after the opening of the £50 million AXA training center in Kirkby.
Mr Hughes said: “These latest results demonstrate the significant financial impact of the global Covid pandemic which has affected all areas of the business.
“We have worked very hard over the past few years to put ourselves in a really solid and sustainable financial position.
“Despite going through a very difficult and uncertain period, overall revenue remained stable, demonstrating the underlying financial strength of the business.
“It’s been an unprecedented time on and off the pitch. Our men’s team winning our 19th league title was a truly fantastic achievement, but not having supporters in the stadium to share in that moment was not what we wanted. wanted.
“Our women’s team also continues to grow and the hard work and strategic changes made to the women’s section sees a challenge for promotion to the WSL this season.
“The continued support of our property has seen more than £130 million invested in infrastructure over the past three years and we are delighted with the great progress made on the Anfield Road expansion project, which will see the Anfield’s capacity will increase to 61,000 when completed. in 2023.
“However, it is imperative that we continue to live within our means and respect football regulations and financial fair play.
“But we will continue to reinvest on and off the pitch to further strengthen our position and compete at the highest level across the club.
“We hope we are nearing the end of the pandemic, but our priority remains to keep people safe.
“We will also continue to do great work in the community to support those who live in and around Anfield and across the city region, especially those who have been affected by the pandemic.”