Despite record revenues of £301.8 million for the financial year ending in May 2016, Liverpool Football Club has posted a loss of £19.8 million, according to the Guardian.
Although Liverpool failed to qualify for the Champions League again, media and match-day revenues increased. These increases can be attributed to Liverpool making it to the Europa League and Capital One Cup finals last season.
Commercial revenue decreased by £700,000 to £11.75 million due to the lack of access at Anfield on non-match days. That being said, both media and matchday income rose to £123.6 and £62.5 million respectively.
On the whole, revenue is up by £3.9 million to a record 301.8 million but the signings of Roberto Firmino and Nathaniel Clyne meant that, before tax, a loss of £19.8 was recorded.
Andy Hughes, Liverpool’s chief operating officer, said, “These results demonstrate the solid financial progress that’s been made over the past six years under the leadership of FSG [Fenway Sports Group] 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.”
As far as the current financial year is concerned, finances will be bolstered by heightened revenues on matchdays due to the expansion of Anfield’s Main Stand as well as the broadcasting deal that is now effective.
Hughes added, “The investments from this ownership have been a key factor to our financial and global progress. We have seen continued investment in the playing squad; the expanded main stand; the new flagship retail store opening later this year; fully refurbished retail stores in Liverpool and Belfast; and we are consulting on a proposed development at our academy in Kirkby to bring together the first team and our young players.
“These investments all contribute to further progress and strengthen the club’s financial position which ultimately serves to support all of our football ambitions.”