LIVERPOOL: Riding on its appearance in the UEFA Champions League final last season and its revival in the Premier League under manager Jurgen Klopp, Liverpool FC announced that it has broken the bank with a 125 million pounds ($162 million) profit during the last financial year which ended on 31 May 2018.
It has shattered the all-time record in the Premier League, which was previously set by Leicester City in 2016-17, a year which included their incredible championship win during which profits soared to 92.5 million pounds ($120 million).
Liverpool’s financial statements show that £137 million ($177.4 million) came into the club from player transfers – all of that, plus further investment, has been reinvested back into the squad taking the total outgoings on new players in excess of £190 million ($246 million), which is the biggest in its history.
Turnover increased during the period by £90 million ($116.5 million) to £455m ($590 million) which represents sustained growth across the club and enabled the further investment into the squad. All three revenue streams saw rises with media revenue increasing by £66 million ($85.5 million) to £220 million ($285 million), commercial revenue increasing by £17 million ($22 million) to £154 million ($200 million) and match revenue increasing by £7 million ($9 million) to £81 million ($105 million).
The majority of those increases are a result of qualification for the Champions League and the additional games progressing through to the final. Liverpool has moved up two places to seventh position in the Deloitte Football Money League this year with all three main revenue streams increasing on the previous financial year.
During the reporting period, the club signed eight new partnerships, including the new shirt sleeve sponsor with Western Union and global partnerships with Falken Tyres and Joie. In addition to the eight new partners, the club renewed with four partners which further demonstrates the strength of those relationships. It was also during this period that the club celebrated its 125th anniversary and the commemorative jerseys were the most popular selling shirts in the club’s history.
LFC also had significant digital growth and became one of the fastest-growing football clubs on social media, including the Instagram platform gaining three million followers at a 71 per cent annual growth rate. Facebook and Twitter continued to grow and saw 27 million fan interactions on Twitter during the reporting period. Overall, the club’s social media platforms had a 14 per cent growth rate taking the total to more than 60 million followers across digital channels.
In May 2018, LFC had the highest viewing figures on YouTube ever for a Premier League club and third of any sports club globally.
Liverpool FC COO Andy Hughes said: “What we have seen is a stable and sustained improvement in the club’s financial position over recent years. This growth and increase in revenue has enabled us to significantly reinvest both in the playing squad and the football operational infrastructure.
“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.
“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.”
