Liverpool Posts First Profit For 7 Years

03 Mar 2015 | sigadmin

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Liverpool Football Club has recorded a profit for the first time in seven years, largely thanks to the rise in revenue from the Premier League, reporting a pre-tax profit of £0.9m in the year to 31st May 2014.

While Arsenal announced pre-tax profits of over £11m in 2014 on Friday, Liverpool’s comparatively small profit follows losses of almost £50m a year earlier.

The club added that revenues were also 19% higher at £255.6m, while media revenues increased 46% to £100.9m – highlighting the importance of TV broadcast revenue.

That compared with a 5% increase in commercial revenue to £103.8m, as the club agreed seven new sponsorship deals, with several more agreed in the new financial year.

The club, however, also reported a £12.2m rise in net debt to £57.3m.

Liverpool has also now moved back up to ninth place in Deloitte’s Football Money League, having dropped to 12th place the previous year.

The figures cover a stronger period for the club on the pitch, when they came close to winning their first league title since 1990 and qualified for the Champions League.

Chief executive Ian Ayre said: “We continue to make good financial progress. Although these results are nearly 12 months old, they demonstrate that the transitional period we’ve been through over the past four years has stabilised the club and provided a platform for growth.

“Revenue has been consistently increasing from around £170m in 2009 to over £250m today and our commercial revenues continue to add strength to our overall results.”

Ayre added: “Our match day revenue increased by £5million, mainly as a result of our successful pre-season tour in Asia and Australia, and we can now look to grow this area following the historic announcement of Anfield’s Main Stand expansion.

“Since this reporting period we have again continued to make good commercial progress announcing several new partnerships including New Balance, Nivea Men, Pru Health Vitality and Instaforex which demonstrates the global appeal of the LFC brand.

“We have also opened 60 franchised shops across Indonesia and new LFC stores in Malaysia and Dublin. We also had a very successful pre-season tour in the US.

“With a hugely supportive ownership, we have brought financial stability back to this football club and we now have the right structure, platform and ambition to continue growing on and off the pitch.”