Liverpool FC’s 2023-24 Financial Report Reveals £57m Loss
In the world of football, financial reports are just as crucial as match results. Liverpool Football Club recently unveiled its annual pre-tax loss of £57 million up to May 31, 2024. This number stands in stark contrast to the £9 million loss the club experienced in the previous year, highlighting a significant financial setback. However, amidst this loss, Liverpool saw an overall revenue increase, rising by £20 million to a total of £614 million during the 2023-24 season. The club’s commercial income also saw a substantial boost, climbing by £36 million to reach £308 million.
Commercial Success and New Players
One of the standout achievements in Liverpool’s financial report was the milestone of surpassing £300 million in commercial revenue for the first time in the club’s history. This accomplishment was largely attributed to the growth in partnerships and retail initiatives. The 2023-24 season marked Jurgen Klopp’s final season as manager, a period in which the Reds clinched the Carabao Cup, secured a third-place finish in the Premier League, and made it to the quarter-finals of both the FA Cup and Europa League.
During this successful yet challenging season, Liverpool bolstered its senior men’s squad by adding four new players. The club invested approximately £165 million in transfer fees to acquire the talents of Alexis Mac Allister, Dominik Szoboszlai, Wataru Endo, and Ryan Gravenberch. Notably, this was the first season since 2016-17 that Liverpool did not participate in the prestigious Champions League, resulting in a £38 million drop in media revenue to £204 million.
Financial Challenges and Strategic Growth
While the club experienced setbacks in revenue streams due to missing out on Champions League participation, Liverpool managed to offset some of these losses with increased Premier League media revenue. The stronger on-field performance in the 2023-24 season compared to the previous year played a significant role in boosting media revenue. Despite these positive developments, the club faced a rise in administrative costs, which increased by £38 million to £600 million. These costs primarily stemmed from salaries and overhead expenses.
Jenny Beacham, the club’s chief finance officer, emphasized the importance of financial sustainability in the face of escalating costs. She highlighted the necessity of growing income streams annually to maintain financial stability. The opening of the new Anfield Road Stand and an increase in matchday revenue to £102 million were positive indicators for the club’s financial health. Matchday costs have surged by nearly 80% over the past eight years, while staff costs have seen an 86% increase since 2018, reaching £386 million.
Liverpool, now under the management of Arne Slot and leading the Premier League with a 13-point advantage over Arsenal, continues to thrive in various aspects. The club garnered an impressive 1.5 billion social media fan engagements and attracted a record 37 million new followers across its social channels. Brand Finance’s 2024 report affirmed Liverpool’s status as having the strongest brand among all Premier League clubs, signaling the club’s enduring global appeal and growth potential.
“The global appeal of this football club continues to be phenomenal and is the underlying strength and opportunity we have for continued growth,” remarked Beacham, underscoring Liverpool’s position as a powerhouse in the world of football finance.
As Liverpool navigates the complexities of financial management in the ever-evolving landscape of professional football, the club remains steadfast in its commitment to sustainable growth and success.
