Skip to main content

Liverpool head for big profit

After suffering more than £50 million in losses over the last two Covid-impacted years, Liverpool are set for a drastic turnaround. Their total revenue is forecasted to reach an all-time high of £602 million resulting in a projected profit of £76 million before tax.

With Liverpool’s resurgence under Klopp over the last few seasons, achieving both domestic and international success has become habitual if not expected by fans. The Reds fulfilled this in 2021/22 by reaching three cup finals in which they secured the FA and EFL cups but were defeated by Real Madrid in the Champions League final.

While the near-perfect season may have left the club oddly unfulfilled, their mood should be lightened by an enhanced revenue figure derived from large prize pools from the numerous top-two finishes.

Another substantial amplifier for projected revenue is the increased matchday income due to the fact Liverpool played a record 63 competitive games.

Finally, as the Reds return to post-Covid commercial turnover levels - and prosper further from the lucrative Nike kit deal in 2020 - their commercial turnover is projected to grow to £241 million, a 28 per cent increase from the last pre-Covid season in 2018/19.

In terms of profits and expenses associated with players, Liverpool’s activity has been directed particularly towards extending contracts with big names.

Major players such as Vigil Van Dijk, Alisson, Jordan Henderson and Fabinho all signed lengthy contract extensions in 2021, and superstar Mohammed Salah put his pen to a long-term extension just after the conclusion of the financial year. These extensions are forecast to result in a rising payroll, but this is overshadowed by the projected major increase in revenue.

Labels:

Comments

Post a Comment

Popular posts from this blog

Threat of financial calamity removed from Baggies

West Bromwich Albion had effectively been in decline ever since the club was sold to a Chinese consortium in August 2016, paying a figure north of £200m to buy former owner Jeremy Peace’s stake. Controlling shareholder Guochuan Lai’s ownership was fairly disastrous for the club, but his unloved tenure finally came to an end after Bilkul Football WBA, a company ultimately owned by Florida-based entrepreneur Shilen Patel and his father Dr Kiran Patel, acquired an 87.8% shareholding in West Bromwich Albion Group Limited, the parent company of West Bromwich Albion Football Club. This change in ownership was urgently required, due to the numerous financial problems facing West Brom, including growing high-interest debt and serious cash flow concerns, following years of no investment from the former owner. Indeed, West Brom’s auditors had already rung the alarm bell in the 2021/22 accounts when they cast doubt on the club’s ability to continue as a going concern without making player s...
1 comment
Read more

Spurs to sell minority stake

Tottenham Hotspur is in talks to sell a minority stake in a deal that could value it at up to £3.75 billion and pave the way for Joe Lewis and his family to sever ties with the Premier League football club. Tottenham chairman Daniel Levy is seeking an investment that values the club at between £3.5 billion and £3.75 billion, including debt. While the terms of any deal have not been finalised, City sources expect Spurs to sell about 10 per cent. The club is being advised by bankers from Rothschild on the sale. Tottenham wants to raise fresh capital for new player signings and to help fund the development of an academy for its women’s team, as well as a 30-storey hotel next to its north London stadium. The financier Amanda Staveley, who brokered the deal for Saudi Arabia’s Public Investment Fund to take over Newcastle United, is understood to be among the parties to have expressed an interest in Tottenham. Staveley’s fund, PCP Capital Partners, has raised about £500 million to ...
Post a Comment
Read more

Millwall punch above their weight

Millwall’s season was overshadowed by the tragic death of owner John Berylson following a car accident. The American had been an exemplary owner, beloved by the fans for his leadership, passion and generosity. Millwall’s finances had been pretty good during his tenure, which we shall explore by looking at the most recent accounts from the 2022/23 season, when the club narrowly missed out on a place in the play-offs after finishing 8th. Millwall’s pre-tax loss slightly reduced from £12.6m to £12.2m, as revenue rose £0.8m (4%) from £18.6m to a club record £19.4m and player sales improved from a £0.1m loss to £2.5m profit. However, other operating income dropped from by £1.1m from £1.3m to £0.2m, while operating expenses increased £1.7m (5%) from £31.6m to £33.3m. The main driver of the revenue increase was broadcasting, which rose £1.1m (12%) from £9.1m to £10.2m, though match day was also up £0.4m (7%) from £5.8m to £6.2m. In contrast, commercial fell £0.7m (19%) from £3.7m to £3....
Post a Comment
Read more