Report explains FSG stance in wake of £120m hit to Liverpool finances

Liverpool saw their finances take a hit over the last year, like all clubs. After all, they’d played without fans since early March 2020.

But this week we got an idea of just how hard they’ve been hit. And it doesn’t look pretty.

The club released its accounts for the year up to May 2020, meaning from June 2019 to the first two months of the pandemic, per the Athletic. Over that period, Liverpool suffered a pre-tax loss of £46m.

Overall revenue fell £43m, an eight per cent drop on the previous year.

Wages are way up, too, rising £15m to £325m up until May 2020. That’s the second-highest wage bill in the Premier League, behind Manchester City.

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As the Athletic points out, it’s a 23.6 per cent increase on the 17/18 campaign – before Liverpool’s push towards the major trophies. This was apparently a result of players receiving wage bonuses after the on-pitch success.

Most worryingly of all, Liverpool’s external debt – i.e. debt owed that doesn’t include FSG – rose to £198m from just £50m. Though, the Athletic says most of that is paid off.

But the important thing to remember through all of this is that the figures do not include the ‘restart’ last year, nor this season. The effects of the pandemic are barely included.

This loss is almost entirely down to the costs of running a successful club. High wages and zero major player sales combine to put Liverpool in debt. Debt that will only have gotten worse over the last year.

Overall, the Athletic’s report claims Liverpool have likely lost £120m and counting.

FSG stance on Liverpool finances

We can turn to the Daily Mail for this. They claim that FSG will not change the transfer plans on the back of these losses.

Photo by Billie Weiss/Boston Red Sox/Getty Images

That does ease some concerns for us. FSG did believe they were getting an enormous amount of money from the Super League, after all, and may have factored that cash into the club’s plans.

It sounds as though they didn’t. Or at least, they have a way of working without that money.

So Liverpool will still look to sign the likes of Ibrahima Konate, says the report. Despite financial uncertainty, they’ll back Jurgen Klopp and boost his squad for the summer.

Now, we still need to see it to fully believe it but this is encouraging. There’s work to be done this summer, after all, and it will put pressure on FSG.

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