Here is your Liverpool morning digest for Wednesday, March 1.
Liverpool accounts show £545m challenge that gives the game away for FSG
Liverpool’s accounts for the 2021/22 period show a business in robust health, but one that faces challenges moving forward in order to keep challenging at the summit, writes Dave Powell.
Record revenues that rose £107m to £594m for the 2021/22 financial year, published today, are somewhat skewed by the £83m boost that a full year of fans back in stadiums post pandemic delivered. But a £7.5m profit and most of the key markers moving in the right direction do point to a business that has emerged resolute from an unprecedented three years off the pitch, when traditional revenue streams were stifled and the biggest clubs across in Europe were haemorrhaging money.
However, within the numbers there are clues to how difficult it has become to operate at the highest level.
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Liverpool’s staff costs have risen some 76 per cent over the last five years, rising from £208m to £366m. Even over the past 12 months, through bonus payments and new and improved longer-term deals for a host of players, the payroll has risen by £54m.
Liverpool’s wage to revenue ratio still falls comfortably below UEFA’s recommended 70 per cent, the Reds at 61.6 per cent. But rising costs are expected to continue, with transfer fees and wages all likely to keep on growing at a time when Liverpool know that they need to enter the transfer market in a significant way this summer.
READ THE FULL STORY HERE.
Liverpool already chasing their next deal as Nike helps secure £247m boost
For Liverpool, the strength of revenue streams in relation to on-pitch investment is more closely aligned than most of their rivals.
The model under Fenway Sports Group since they arrived as owners back in 2010 has been one of a sustainable business which re-invests into improving the product on the pitch.
It is a model that having served Liverpool well in recent years now finds itself challenged by soaring transfer, payroll and other administrative costs. But while FSG search for a partner that could take a slice of the club in exchange for a sizeable chunk of capital to that could be reinvested, growing commercial revenues remains at the core of what Liverpool aim to do.
The Reds published their accounts for the year ending May 2022 today (Tuesday), with the club having posted record revenues of £594m and a pre-tax profit of £7.5m.
Of that revenue figure, 41.6 per cent of it is made up of commercial revenues, a figure that jumped £29m to £247m for the 2021/22 accounting period.
Deals with Wasabi, Kodansha and VistaPrint all aided the effort, although the renewal of the Standard Chartered front of shirt sponsorship, believed to be worth upwards of £50m per year now to the Reds, was inked after the end of the financial year and will be shown in the current financial year, which runs until the end of March.
READ THE FULL STORY HERE.
READ NEXT:
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- 'I really think' - Jurgen Klopp gives honest view on Liverpool top four chances
- Liverpool signing labelled a 'coward' by Carlo Ancelotti punched opposition player before being booed out of Anfield
- FSG now need to hear just one simple promise from new Liverpool investors
- Liverpool have fallen into trap that top teams avoid but Jurgen Klopp can still change it
