Liverpool Reveals Price Of Cl Failure
The extent of the cost of failing to re-establish a club in Europe, despite heavy investment, has been revealed after Liverpool FC on Monday announced its debts had risen by a third to £87.2 million, while losses of £40.5 million were accumulated during the 2011/12 season.
During that period the club won the Carling Cup and reached the FA Cup final, with the financial results demonstrating the importance of top European football, and the comparatively minimal impact on the balance sheets of two domestic finals last season and a League Cup triumph.
Meanwhile, this year Liverpool face little prospect of reaping the rewards of Champions League football next season with the team languishing in seventh place in Premier League, ten points adrift of the top four with ten games remaining.
Last season’s eighth-place finish appears to have hit the Anfield accounts hard, also contributing to Liverpool legend Kenny Dalglish losing his job as manager.
The cost of firing Dalglish was included in the £9.5 million of exceptional payments during the 10 months to 31st May, 2012 covered by these accounts.
The club’s losses of £40.5 million in the accounts covering a 10-month period were in line with the losses in the previous full year, with an increase in turnover of £5 million from the £184 million pounds reported for 2010/11.
However by comparison Liverpool’s closest rivals, Manchester United – in terms of league titles, at least – announced revenue in 2011/12 hit £320 million, after revealing its results in January.
The club made a loss on player transfers of £1.7 million, compared with a £43.3 million profit a year earlier, thanks largely to the sale of striker Fernando Torres, who was sold to Chelsea for a reported £50m at the beginning of 2011. This was followed by heavy spending before the 2011/12 season – which included Stewart Downing and Jordan Henderson – but the club’s performances on the pitch failed to deliver Champions League football.
The results, covering accounts a year ago, will since have been improved by new partnerships with Warrior, Garuda and Chevrolet, suggesting far stronger results in the future.
