Liverpool posted a loss before tax of £57 million last season as their Champions League absence and soaring administrative costs took their toll.
After a loss of £9m the previous year, a £38m drop in media revenue for 2023-24, combined with an increase of a similar amount in general expenses, resulted in the club spending a second season in the red.
While commercial revenue rose by £36m to surpass £300m for the first time, and matchday income rose by £22m thanks to the opening of the new Anfield Road stand, staff costs – primarily wages and associated bonuses – increased by £13m to £386million.
That was in part down to bonuses due for Champions League qualification and a Carabao Cup win last season.
The wage bill was eased by the departure of higher-earners like Roberto Firmino, Fabinho, Jordan Henderson, Alex Oxlade-Chamberlain, Naby Keita and James Milner.
However, the acquisition of Alexis Mac Allister, Dominik Szoboszlai, Wataru Endo and Ryan Gravenberch for a combined £150m and the extension of 11 contracts, plus recruitment and renewals for the women’s team, all added to costs.
Inflation has taken its toll on finances, with matchday costs increasing by almost 80 percent in eight years and forecast to top 100 percent by 2027, utility bills more than doubling in three years and administrative expenses increasing by 88 percent from £320m to £600m since 2018.
Nevertheless, chief finance officer Jenny Beacham said the club would maintain “investment opportunities in our operations, infrastructure and players.”
“Operating a financially sustainable club continues to be our priority and, with the continued increase in costs, it’s essential to grow income streams year on year to maintain financial stability,” she said.
“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 game.
“We will continue to operate in accordance with football’s financial rules and regulations while maintaining investment opportunities in our operations, infrastructure and players.”
On a positive note, bank debt decreased by £10m to £116m, while the return of Champions League revenues – finishing top of the group stage is believed to have been worth at least £83.8m with a further £47million to play for – plus potential Premier League success, and a fully-operational Anfield Road will provide an important boost to finances which is likely to push the club towards a healthier financial position.
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