Liverpool FC record profit despite record transfer acquisitions
Figures released on Thursday for the financial year to May 31, 2019, comprise the acquisitions of Alisson Becker (£65million), Naby Keita (£52.75m), Fabinho (£43.7m) and Xherdan Shaqiri (£13m).
It also includes the increased costs of new contracts for 11 players like Roberto Firmino, Jordan Henderson, Mohammed Salah, Trent Alexander-Arnold, Andy Robertson, Sadio Mane amongst others. The aforementioned players have played major roles in Liverpool’s domestic exploits thus far.
It must be noted that some of the cost was offset by the sale of the likes of Danny Ings (£20m), Danny Ward (£12.5m), and Dominic Solanke (£19m). Last year’s UCL triumph also boosted the income although the prize money for the victory in the final will be counted in the current financial year.
Chief operating officer Andy Hughes said: “This continued strengthening of the underlying financial sustainability of the club is enabling us to make significant investments both in player recruitment and infrastructure”
“Being able to reinvest over £220m on players during this financial period is a result of a successful business strategy, particularly the significant uplift in commercial revenues.
“The cost of football, however, does continue to rise in transfers and associated fees but what’s critical for us is the consistency of our financial position, enabling us to live within our means and continue to run a sustainable football club.”
The turnover in that period increased by £78m to £533m with media revenue increasing by £41m to £261m, match revenue increasing by £3.5m to £84m, and commercial revenue increasing by £34m to £188m.
The rise was due to factors such as a new Champions League broadcasting deal which began during this period, finishing second place in the Premier League behind Manchester City alongside higher partnership coupled with merchandising value as the Reds signed their first training kit sponsorship deal with AXA.
The matchday revenue for the club is expected to increase if the proposed redevelopment of the Anfield Road Stand is approved.
“What we’re seeing is sustained growth across all areas of the club which is aligned to the recent performance on the pitch,” added Hughes.
“Since this reporting period we have continued to reinvest in the club’s infrastructure, and we look forward to the opening of our new (£50m) training base at Kirkby ahead of the new season which will provide first-class facilities for our players and staff.
“We have also just completed a second-phase consultation on a proposed expansion of the Anfield Road stand which could see an increase in the stadium’s capacity.
“These financial results and this sustained period of solid growth is testament to our ownership, Fenway Sport Group, who continue to support the club’s ambitions and continue to reinvest revenues both in strengthening the playing squad and the club’s infrastructure to build for the future.”