First-team investment puts multi-million pound dent in Liverpool FC financials

Liverpool FC continued to see their revenues grow in the 12 months to May 31 2016, but posted a eight-figure loss for the period.

According to their latest financial report, the Reds achieved a record £301m turnover despite making a pre-tax loss of £19.8m.

In a statement on their website, Liverpool put the figure down to “further investment and turnover in the first-team squad”.

Media revenue rose by £1m to £123.6m, while matchday revenue leapt by £3.4m to £62.4m. Both avenues of growth were attributed to LFC reaching two cup finals and their successful pre-season tour in Asia and Australia.

Commercial revenues, meanwhile, fell by £700k to £115.7m. The figure was impacted by the construction of Anfield’s new Main Stand, which affected access to the stadium on non-matchdays.

Andy Hughes, LFC’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 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.”

He continued: “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.”

The results have seen Liverpool maintain their ninth position in professional services giant Deloitte’s Football Money League rich list.