Liverpool made a world-record net profit for a football club of £125 million in the last financial year, with investment in Jürgen Klopp’s squad over the same period totalling £190 million.
The figures for the financial year ending May 2018 were announced today in the club’s annual results. As revealed by The Times last month, Liverpool’s profit — an increase on £40 million the previous year — outstrips the £92.5 million before tax Leicester City posted the season after they won the Premier League title in 2016.
The financial statement shows that £137 million came into the club from player transfers, including the departures of Philippe Coutinho, Mamadou Sakho, Lucas Leiva and Kevin Stewart.
All of that money, plus additional funds, were reinvested back into Klopp’s squad taking the total spending on new players to more than £190 million through the signings of Mohamed Salah (£37 million), Virgil van Dijk (£70 million), Alex Oxlade-Chamberlain (£35 million), Andrew Robertson (£8 million) and Dominic Solanke (undisclosed). In addition to transfer fees that figure includes agents’ fee and associated costs.
Since the period under review, investment in the playing squad has continued with Naby Keita, Fabinho, Alisson Becker and Xherdan Shaqiri arriving. The profit after tax is £106 million and the club wage bill has risen to £263 million.
Liverpool’s debt is in two parts: the Main Stand loan, a pass-through from the owners Fenway Sports Group, which is now £100 million after £10 million in capital was paid off over the past year; and Liverpool’s revolving credit facility, or external debt, which stands at £56 million.
Turnover increased by £90 million to £455 million with media revenue rising by £66 million to £220 million, commercial revenue up £17 million to £154 million and match revenue increasing by £7 million to £81 million. Liverpool’s qualification for the Champions League and surge to the final of the competition, where they lost 3-1 to Real Madrid, is responsible for the majority of those increases.
Overall, the figures further demonstrate the year-on-year improvement in the fiscal fortunes of a club threatened with administration in 2010 under previous owners, Tom Hicks and George Gillett, and show how Liverpool are self-sustainable.
“What we have seen is a stable and sustained improvement in the club’s financial position over recent years,” said Andy Hughes, Liverpool’s chief operating officer. “This growth and increase in revenue has enabled us to significantly reinvest both in the playing squad and the football operational infrastructure.
“Financial results do fluctuate depending on player trading costs and timing of payments but what’s clear in these latest results is the further strengthening of our underlying financial footing and profits being reinvested in the squad and infrastructure.
“Since the reporting period, which is now nearly 12 months old, we have continued reinvesting in the playing squad from those areas of growth. In addition, the capital investment in our new training complex in Kirkby is well underway which will provide first-class amenities for our players and staff, and will vastly improve sports facilities for the community of Kirkby.”
The new training HQ will cost £50 million and the club are continuing a feasibility study into the expansion of the Anfield Road stand, for which they would take on more debt.
“We’re making solid progress right across the club,” added Hughes. “Costs in football continue to rise year on year and it’s important we constantly review and manage our operating costs to ensure we’re in the right shape for future success.
“With the continued support of our ownership group, performance on the pitch and maintaining our priority of reinvesting back into the squad, we remain focused towards fulfilling all our football ambitions.”