Liverpool Reports Soaring Profits
By Community | February 8, 2019
Liverpool FC reported £125 million pre-tax profit for the year to May 2018, more than three times higher than in the previous year. The profit after tax was £106 million.
The Premier League club’s revenue increased by £90 million to £455 million, as media, commercial and match-day revenues all rose sharply, thanks largely to a big Champions League campaign that led all the way to last year’s final.
Media revenue increased by £66 million to £220 million, commercial revenue was up £17 million to £154 million and match revenue grew by £7 million to £81 million.
The report shows that £137 million came into the club from player transfers. “All of that, plus further investment, has been reinvested back into the squad taking the total outgoings on new players in excess of £190 million,” the club stated.
During the reporting period, the club signed eight new partnerships, including the new shirt sleeve sponsor with Western Union and global partnerships with Falken Tyres and Joie.
The club also renewed with four partners which further demonstrates the strength of those relationships, consistency of delivering value to partners and the global appeal of the football club.
LFC also had significant digital growth and became one of the fastest-growing football clubs on social media, including the Instagram platform gaining three million followers at a 71% annual growth rate.
Facebook and Twitter continued to grow and saw 27 million fan interactions on Twitter during the reporting period. Overall, the club’s social media platforms had a 14% growth rate taking the total to more than 60million followers across digital channels.
In May 2018, LFC had the highest viewing figures on YouTube ever for a Premier League club and third of any sports club globally.
Liverpool FC COO Andy Hughes said: “What we have seen is a stable and sustained improvement in the club’s financial position over recent years. This growth and increase in revenue have enabled us to significantly reinvest both in the playing squad and the football operational infrastructure.
“Financial results do fluctuate depending on player trading costs and timing of payments but what’s clear in these latest results is the further strengthening of our underlying financial footing and profits being reinvested in the squad and infrastructure.
“Since the reporting period, which is now nearly 12 months old, we have continued reinvesting in the playing squad from those areas of growth. In addition, the capital investment in our new training complex in Kirkby is well under way which will provide first-class amenities for our players and staff and will vastly improve sports facilities for the community of Kirkby.”