Liverpool financial results: Reds announce record-breaking figures

Liverpool have posted record-breaking financial figures for last year with a £125 million profit before tax.

The Reds have prospered despite splashing out £190m on players, topping the previous record by Leicester (£92.5m before tax) after their title win and Champions League run.

The trend will be highly pleasing for John W Henry and co., with the figures ending on May 2018 showing a rise of £85m on the previous year. Though that season there was no European football, emphasising the need to make the top four at least.

The biggest factors in the number will be the run to Kiev, where they lost the Champions League final to Real Madrid, as well as the enormous sale of Philippe Coutinho, whose move to Barcelona may eventually fetch the Reds £142m. Though only a portion of that via an instalment contributed to the £137m accumulated from player sales.

Jurgen Klopp was backed heavily, with that money being pushed back into the first team squad, including the signings of Mohamed Salah, Alex Oxlade-Chamberlain, Andrew Robertson, Dominic Solanke and Virgil Van Dijk- who became the world’s most expensive defender at £75m.

Since the end of the reporting period club owners Fenway Sports Group have spent more money on players with Naby Keita, Fabinho, Xherdan Shaqiri and Alisson Becker – briefly the world’s most expensive goalkeeper at £65m – coming in at a cost of £165m but those deals will be reflected in the current year’s figures.

Not all the investment has gone on players, however, with the club’s £50m redevelopment of the academy at Kirkby incorporating a new first-team training base.

That will be complete for the start of the 2020/21 season, meaning the biggest financial hit will be felt in the current financial year.

Turnover increased during the last period by £90m to £455m, with all three revenue streams rising: media increasing by £66m to £220m, commercial up by £17m to £154m and match revenue increasing by £7m to £81m.

That level of matchday revenue is close to Liverpool’s absolute limit given the constraints of Anfield’s 54,000 capacity and without further development of the Anfield Road End, a decision on which has yet to be made by FSG.

It was boosted by the extra games in the Champions League and while the club’s involvement in the Premier League title race this year cannot generate any extra income from additional matches, it will make them a more attractive proposition on a commercial front.

And while Press Association Sport understands the club is keen to capitalise on their success on the pitch, most of their current commercial sponsorships are tied into long-term deals.

“Financial results do fluctuate depending on player trading costs and timing of payments but what’s clear in these latest results is the further strengthening of our underlying financial footing and profits being reinvested in the squad and infrastructure,” said chief financial officer Andy Hughes.

“Since the reporting period, which is now nearly 12 months old, we have continued reinvesting in the playing squad from those areas of growth.

“We’re making solid progress right across the club. Costs in football continue to rise year on year and it’s important we constantly review and manage our operating costs to ensure we’re in the right shape for future success.

“With the continued support of our ownership group, performance on the pitch and maintaining our priority of reinvesting back into the squad, we remain focused towards fulfilling all our football ambitions.”

PA