Liverpool post massive profit despite considerable spendings on signings

The Merseysiders recorded a total of £223m investment on players yet they have managed to make a pre-tax profit of £42m from last year.

While that top line is well below the record £125m profit for the year ending May 2018, the rewards are being felt on the pitch. Liverpool is just four wins away from securing their first Premier League titles in three decades.

As of the financial year to 31 May 2019, the figures released on Thursday incorporate the purchases of Alisson Becker (£65m), Xherdan Shaqiri (£13m), Fabinho (£43.7m) and Naby Keita (£52.75m).

The records also include the increased costs of new contracts for 11 players such as captain Jordan Henderson, Roberto Firmino, Mohamed Salah, Sadio Mane, Andy Robertson, and Trent Alexander-Arnold – who have all played a key role in helping Jurgen Klopp‘s champions-elect establish a 22-point lead at the top of the table.

Some of that cost was offset by sales including Danny Ward (£12.5m), Danny Ings (£20m) and Dominic Solanke (£19m).

However, the prize amount which came after the Jurgen Klopp’s men secured their sixth UEFA Champions League title at Madrid against Tottenham Hotspurs will be counted in the current fiscal year. Also, Liverpool can credit their financial boost to the Champions League success.

Chief operating officer Andy Hughes said:

“This continued strengthening of the underlying financial sustainability of the club is enabling us to make significant investments both in player recruitment and infrastructure,” 

“Being able to reinvest over £220m on players during this financial period is a result of a successful business strategy, particularly the significant uplift in commercial revenues.

“The cost of football, however, does continue to rise in transfers and associated fees but what’s critical for us is the consistency of our financial position, enabling us to live within our means and continue to run a sustainable football club.”

The annual turnover of the Anfield based outfit increased by £78 million to £533 million with all other income raisings. The commercial revenue increased from £34 million to £188 million, media revenue increased by £41 million to £261 million,  and match revenue increased by a huge margin from £3.5 million to £84 million.

The tremendous rise in revenue is a result of a new Champions League broadcasting deal from Merseysiders which began during this period. Also, they can attribute their financial success to their close finish to Manchester City in the Premier League where they failed to secure the title and higher merchandising value. During this period, Liverpool signed its first training kit sponsorship deal with a company called AXA.

Hughes also opined:

“What we’re seeing is sustained growth across all areas of the club which is aligned to the recent performance on the pitch,” 

“Since this reporting period we have continued to reinvest in the club’s infrastructure, and we look forward to the opening of our new (£50m) training base at Kirkby ahead of the new season which will provide first-class facilities for our players and staff.

“We have also just completed a second-phase consultation on a proposed expansion of the Anfield Road stand which could see an increase in the stadium’s capacity.

“These financial results and this sustained period of solid growth is testament to our ownership, Fenway Sport Group, who continue to support the club’s ambitions and continue to reinvest revenues both in strengthening the playing squad and the club’s infrastructure to build for the future.”