Liverpool FC in £19.8m loss on record £301m revenue

Liverpool Football Club filed annual accounts for the year to May 31, 2016, revealing that revenue increased £3.9 million to a record £301 million but that it made a loss before tax of £19.8 million due mainly to “further investment and turnover in the first-team squad.”

Twelve additions were made to the first team squad including Roberto Firmino, James Milner, Marko Grujic, Danny Ings, Nathaniel Clyne and Joe Gomez.

Media revenue increased by £1 million to £123.6 million, match day revenue increased by £3.4 million to £62.4 million and commercial revenue fell by £700,00 to £115.7 million.

Liverpool said revenue has grown year on year since Fenway Sports Group (FSG) took ownership of the club in October 2010.

It said 10 new partnerships were announced during the reporting period, including Draftkings, Vixlet, Claymore Wines and Skype — while four existing partners renewed their deals.

Liverpool also launched an online store on the JD.com marketplace in China – becoming the first football club in Europe to do so.

It said that digitally, it had an 18% increase in new followers, taking the total to more than 50 million across the club’s social media platforms.

New Liverpool FC websites were also launched in Arabic, French and Spanish.

Andy Hughes, chief operating officer at Liverpool Football Club, said: “These results demonstrate the solid financial progress that’s been made over the past six years under the leadership of FSG with continued investment in the playing squad and the completion of the main stand.

“The increase in the underlying revenue adds further strength to the club’s financial position despite the cost of football rising with player transfer fees, wages and agents’ costs.

“During this reporting period, we also agreed a new five-year credit facility, which further secures the club’s long-term financial stability.

“All three main revenue streams continue to show strength and commercial revenues held firm irrespective of the impact of the Main Stand at Anfield.”

Liverpool said it is the only club in the top 10 of the Deloitte Football Money League that didn’t play in the UEFA Champions League last season “demonstrating the strength of its commercial operations to support reinvestment into the playing squad.”

Since the reporting period ended, the club has announced partnerships with Bet Victor, Malaysia Airlines, Konami and Alcatel.