Liverpool announce £42m pre-tax profit despite record £223m spend on players

[Crustanoid]

Have a look at this, Ed, Joel and the rest of you thieving, incompetent, lying tw@ts.

It turns out that spending money on improving your football team actually makes you a profit.

https://www.theguardian.com/footbal...financial-year-2018-19?CMP=Share_iOSApp_Other

Liverpool announce £42m pre-tax profit despite record £223m spend on players

• Club’s turnover reaches £533m for financial year 2018-19
• Investment in players includes signings and new contracts

Andy Hunter
Published: 10:00 Thursday, 27 February 2020
Follow Andy Hunter

Liverpool made a pre-tax profit of £42m and increased turnover to £533m in 2018-19 as the club’s rise to European champions under Jürgen Klopp was reflected on the balance sheet.
The latest accounts, for the year ending 31 May 2019, show turnover rose by £78m thanks to increased media, commercial and match-day revenue. The turnover of £533m enabled Liverpool to invest a record £223m on players, notably the signings of Alisson, Fabinho, Naby Keïta and Xherdan Shaqiri. There were also new contracts for 11 players including lucrative deals for Mohamed Salah, Sadio Mané, Roberto Firmino, Jordan Henderson, Trent Alexander-Arnold and Andy Robertson.
FFP turned round Premier League clubs’ losses and helped restore Liverpool | David Conn
Liverpool’s media revenue increased by £41m to £261m thanks mainly to the Champions League broadcasting deal that started in 2018-19, when Klopp’s team won the club’s sixth European crown by defeating Tottenham in Madrid. In a season that also brought a second-place finish in the Premier League and enthralling title race with Manchester City, commercial revenue rose by £34m to £188m and match revenue by £3.5m to £84m. Nine new commercial partnerships were signed, including a first official training kit partnership with AXA.
AdvertisementHide

Andy Hughes, Liverpool’s chief operating officer, said: “This continued strengthening of the underlying financial sustainability of the club is enabling us to make significant investments both in player recruitment and infrastructure. Being able to reinvest over £220m on players during this financial period is a result of a successful business strategy, particularly the significant uplift in commercial revenues.
“The cost of football, however, does continue to rise in transfers and associated fees but what’s critical for us is the consistency of our financial position, enabling us to live within our means and continue to run a sustainable football club.”
Liverpool have committed £50m to a new training facility in Kirkby, which is due for completion in July. The club also has plans for a £60m expansion of the Anfield Road stand that will raise Anfield’s capacity to 61,000.
Hughes added: “These financial results and this sustained period of solid growth is testament to our ownership, Fenway Sport Group, who continue to support the club’s ambitions and continue to reinvest revenues both in strengthening the playing squad and the club’s infrastructure to build for the future.”

 

[TheReligion]

Don't think Ed and co will see this here @Crustanoid

 

[nycender]

Wow their turnover is not far off ours

 

[AltiUn]

We've spent loads of money post SAF, it's just that until very recently we'd been spending our money badly. Not sure I can take another thread gushing over Liverpool.

 

[Jippy]

They're adding nearly 20k capacity for £60m?! Good for them if true.

 

[passing-wind]

We've spent loads of money post SAF, it's just that until very recently we'd been spending our money badly. Not sure I can take another thread gushing over Liverpool.

It's not even to do with that aspect for me it's that Liverpool have spent and won valuable honours. We have spent and at best have won the Europa League despite almost 700 odd million investment.

 

[100]

Why are they comparing a yearly profit with multiyear expenditure?

Edit: nvm, still seems slightly misleading

 

[Skills]

Why are they comparing a yearly profit with multiyear expenditure?

To rile up our stupid fanbase?

 

[Deery]

We really need to get back in the Champions League.

 

[UnrelatedPsuedo]

They're adding nearly 20k capacity for £60m?! Good for them if true.

7k added

 

[Chesterlestreet]

Not sure I can take another thread gushing over Liverpool.

Sign of the times, I'm afraid.

And the problem with Liverpool is that - well - they aren't City. They have remained largely relevant in terms of world wide fan base throughout their years in the wilderness (comparable, if not in every respect, to United during Liverpool's dominance in the 70s and 80s). They can profit hugely from - finally - being back on the feckin' perch Fergie knocked 'em down from.

We. Should. Be. Worried.

That said, I'm not in panic mode just yet. They aren't that good, for one thing. It's not like we're looking at competing with Pep's Barca for the foreseeable. Much could change rather quickly with a few twists and turns.

 

[Devil_forever]

Have a look at this, Ed, Joel and the rest of you thieving, incompetent, lying tw@ts.

It turns out that spending money on improving your football team actually makes you a profit.

https://www.theguardian.com/footbal...financial-year-2018-19?CMP=Share_iOSApp_Other

Liverpool announce £42m pre-tax profit despite record £223m spend on players

• Club’s turnover reaches £533m for financial year 2018-19
• Investment in players includes signings and new contracts

Andy Hunter
Published: 10:00 Thursday, 27 February 2020
Follow Andy Hunter

Liverpool made a pre-tax profit of £42m and increased turnover to £533m in 2018-19 as the club’s rise to European champions under Jürgen Klopp was reflected on the balance sheet.
The latest accounts, for the year ending 31 May 2019, show turnover rose by £78m thanks to increased media, commercial and match-day revenue. The turnover of £533m enabled Liverpool to invest a record £223m on players, notably the signings of Alisson, Fabinho, Naby Keïta and Xherdan Shaqiri. There were also new contracts for 11 players including lucrative deals for Mohamed Salah, Sadio Mané, Roberto Firmino, Jordan Henderson, Trent Alexander-Arnold and Andy Robertson.
FFP turned round Premier League clubs’ losses and helped restore Liverpool | David Conn
Liverpool’s media revenue increased by £41m to £261m thanks mainly to the Champions League broadcasting deal that started in 2018-19, when Klopp’s team won the club’s sixth European crown by defeating Tottenham in Madrid. In a season that also brought a second-place finish in the Premier League and enthralling title race with Manchester City, commercial revenue rose by £34m to £188m and match revenue by £3.5m to £84m. Nine new commercial partnerships were signed, including a first official training kit partnership with AXA.
AdvertisementHide

Andy Hughes, Liverpool’s chief operating officer, said: “This continued strengthening of the underlying financial sustainability of the club is enabling us to make significant investments both in player recruitment and infrastructure. Being able to reinvest over £220m on players during this financial period is a result of a successful business strategy, particularly the significant uplift in commercial revenues.
“The cost of football, however, does continue to rise in transfers and associated fees but what’s critical for us is the consistency of our financial position, enabling us to live within our means and continue to run a sustainable football club.”
Liverpool have committed £50m to a new training facility in Kirkby, which is due for completion in July. The club also has plans for a £60m expansion of the Anfield Road stand that will raise Anfield’s capacity to 61,000.
Hughes added: “These financial results and this sustained period of solid growth is testament to our ownership, Fenway Sport Group, who continue to support the club’s ambitions and continue to reinvest revenues both in strengthening the playing squad and the club’s infrastructure to build for the future.”

They’ve included money spent on contract renewals in that figure of £220m and implied that it’s transfer spend, it isn’t, that coupled with Klopp’s comments about transfers makes me think they’re trying to butter the fans up for reduced transfer spending from last summer onwards. We’ve invested literally half a billion more than then in the last few years in net terms. They’ve just invested it far better. Stop using lack of investment as a stick to beat the club with.

 

[Jippy]

7k added

Ah, ok, so that will have a lengthy payback period.

 

[Maurice Setters Training]

Why are they comparing a yearly profit with multiyear expenditure?

Edit: nvm, still seems slightly misleading

This. I suppose it makes a good headline.

 

[PickledRed]

Probably the best run club on the world in terms of trading players, growing commercially and balancing the books.

 

[UnrelatedPsuedo]

Ah, ok, so that will have a lengthy payback period.

Huh? Did I miss an obvious joke?

They’re going from 54,000 seats to 61,000.

 

[UnrelatedPsuedo]

Probably the best run club on the world in terms of trading players, growing commercially and balancing the books.

Dortmund

 

[thegregster]

Wage bill of 310mil.

So a few of them must be on 300-400k a week.

 

[Tom Cato]

Have a look at this, Ed, Joel and the rest of you thieving, incompetent, lying tw@ts.

It turns out that spending money on improving your football team actually makes you a profit.

https://www.theguardian.com/footbal...financial-year-2018-19?CMP=Share_iOSApp_Other

Liverpool announce £42m pre-tax profit despite record £223m spend on players

• Club’s turnover reaches £533m for financial year 2018-19
• Investment in players includes signings and new contracts

Andy Hunter
Published: 10:00 Thursday, 27 February 2020
Follow Andy Hunter

Liverpool made a pre-tax profit of £42m and increased turnover to £533m in 2018-19 as the club’s rise to European champions under Jürgen Klopp was reflected on the balance sheet.
The latest accounts, for the year ending 31 May 2019, show turnover rose by £78m thanks to increased media, commercial and match-day revenue. The turnover of £533m enabled Liverpool to invest a record £223m on players, notably the signings of Alisson, Fabinho, Naby Keïta and Xherdan Shaqiri. There were also new contracts for 11 players including lucrative deals for Mohamed Salah, Sadio Mané, Roberto Firmino, Jordan Henderson, Trent Alexander-Arnold and Andy Robertson.
FFP turned round Premier League clubs’ losses and helped restore Liverpool | David Conn
Liverpool’s media revenue increased by £41m to £261m thanks mainly to the Champions League broadcasting deal that started in 2018-19, when Klopp’s team won the club’s sixth European crown by defeating Tottenham in Madrid. In a season that also brought a second-place finish in the Premier League and enthralling title race with Manchester City, commercial revenue rose by £34m to £188m and match revenue by £3.5m to £84m. Nine new commercial partnerships were signed, including a first official training kit partnership with AXA.
AdvertisementHide

Andy Hughes, Liverpool’s chief operating officer, said: “This continued strengthening of the underlying financial sustainability of the club is enabling us to make significant investments both in player recruitment and infrastructure. Being able to reinvest over £220m on players during this financial period is a result of a successful business strategy, particularly the significant uplift in commercial revenues.
“The cost of football, however, does continue to rise in transfers and associated fees but what’s critical for us is the consistency of our financial position, enabling us to live within our means and continue to run a sustainable football club.”
Liverpool have committed £50m to a new training facility in Kirkby, which is due for completion in July. The club also has plans for a £60m expansion of the Anfield Road stand that will raise Anfield’s capacity to 61,000.
Hughes added: “These financial results and this sustained period of solid growth is testament to our ownership, Fenway Sport Group, who continue to support the club’s ambitions and continue to reinvest revenues both in strengthening the playing squad and the club’s infrastructure to build for the future.”

We can also write an article like that where we post a massive profit despite signing De gea to a £110m contract and add that to the spend.

Liverpool are doing absolutely phenomenal. They are not quite at MUFC level, but closing the gap rapidly now.

 

[DAK222]

Sign of the times, I'm afraid.

And the problem with Liverpool is that - well - they aren't City. They have remained largely relevant in terms of world wide fan base throughout their years in the wilderness (comparable, if not in every respect, to United during Liverpool's dominance in the 70s and 80s). They can profit hugely from - finally - being back on the feckin' perch Fergie knocked 'em down from.

We. Should. Be. Worried.

That said, I'm not in panic mode just yet. They aren't that good, for one thing. It's not like we're looking at competing with Pep's Barca for the foreseeable. Much could change rather quickly with a few twists and turns.

Isn't this actually a problem for you? We could get better....

I think you might actually be better off if you were up against Pep's Barca for the foreseeable future. You only have to wait till he leaves after 3/4 years and be ready to pick up the pieces and build serious momentum the way you did in the 90's. With Klopp, who knows how long you'll have to wait. Especially when Real/Barca aren't poaching our top players. Your main hope would be the fact that Klopp hasn't yet rebuilt his team after tearing down the old one. But that could also be because he never really had a fair shot at it. If by chance he and his team turn out to be good at that, then that could be a serious problem for you lot.

 

[PickledRed]

Dortmund

Probably Liverpool given the heights reached.

Either way, what's the common denominator?

 

[afrocentricity]

The amount of Liverpool support on this sight nowadays...

 

[UnrelatedPsuedo]

Probably Liverpool given the heights reached.

Either way, what's the common denominator?

The time period sees Dortmund win out.

Bayern are arguably ahead of both Liverpool and Dortmund. But they’re almost a special case.

 

[Shane88]

It's that type of rapid growth that's gonna put us in our own 30 year drought.

 

[Dorris]

'Liverpool announce £42m pre-tax profit despite record £223m spend on players but we'll ignore the fact most of that £223m isn't recognised within pre-tax profit'

 

[Mogget]

Probably the best run club on the world in terms of trading players, growing commercially and balancing the books.

Hardly. You mugged off Barca with the Coutinho transfer and bought well, but you've had years of buying overpriced shite. You also need to hope Bournemouth stay up, so you can carry on selling them your dross for £25m each season

 

[Chesterlestreet]

If by chance he and his team turn out to be good at that, then that could be a serious problem for you lot.

Oh yes - no doubt. But what you're talking about there is some kind of Fergie scenario. Which is a worst case scenario as far as I'm concerned. It would be predicated on several factors: a) Klopp is capable not only of building a new team on the same level - but also of reinventing himself as a manager in the face of inevitable changes in the "football climate" as such, b) United remain incapable of utilizing our current financial edge (which is still considerable vis-à-vis most teams), c) other teams, besides United themselves, keep lagging behind Liverpool (this is relevant if we're talking about Liverpool going on a Fergie style streak).

Still, I'm worried - sure. Just not panicking.

 

[Jippy]

Huh? Did I miss an obvious joke?

They’re going from 54,000 seats to 61,000.

No, I was still thinking Anfield was nearer 40k.

 

[Adisa]

In six years, our financial advantage has completely disappeared.

 

[Dorris]

In six years, our financial advantage has completely disappeared.

It really hasn't. Within that £42m will be the enormous gain on Coutinho's sale, and the majority of the £223m won't have been recognised as a cost. It's really not as rosy as the article is making out.

 

[PickledRed]

Hardly. You mugged off Barca with the Coutinho transfer and bought well, but you've had years of buying overpriced shite. You also need to hope Bournemouth stay up, so you can carry on selling them your dross for £25m each season

Okay. That's all really relevant to the point being made around profit and turnover, of course.

 

[UnrelatedPsuedo]

No, I was still thinking Anfield was nearer 40k.

I think this addition was always on the cards. A friend was a PM on the Project. First phase added about 10k I think. Maybe 4-5 years ago? They had that period where they didn’t have home games for a while. Similar to Spurs.

 

[PickledRed]

The time period sees Dortmund win out.

Bayern are arguably ahead of both Liverpool and Dortmund. But they’re almost a special case.

The rapidity of Liverpool's rise is quite remarkable. Dortmund are very well run and have sustained it for longer - like Liverpool it's inextricably linked to the genius of Klopp.

Depends which timeframes you want to use, but I think Liverpool's growth off the pitch and improvements on the pitch are pretty incredible. Superbly run club. Quite a contrast from the days of Moores and H&G.

 

[UnrelatedPsuedo]

The rapidity of Liverpool's rise is quite remarkable. Dortmund are very well run and have sustained it for longer - like Liverpool it's inextricably linked to the genius of Klopp.

Depends which timeframes you want to use, but I think Liverpool's growth off the pitch and improvements on the pitch are pretty incredible. Superbly run club. Quite a contrast from the days of Moores and H&G.

You credit Klopp with too much.

The Operations side of both Dortmund and Liverpool enable(d) Klopp to do good work. He doesn’t enable them.

 

[PickledRed]

It really hasn't. Within that £42m will be the enormous gain on Coutinho's sale, and the majority of the £223m won't have been recognised as a cost. It's really not as rosy as the article is making out.

Every analyst you read or hear about indicate that it is as rosy as is being made out. Liverpool's growth is closing the gap on the richer clubs. Tifo Football did a good video on this. https://www.tifofootball.com/video/manchester-united-liverpool-and-the-battle-for-asia/

 

[PickledRed]

You credit Klopp with too much.

The Operations side of both Dortmund and Liverpool enable(d) Klopp to do good work. He doesn’t enable them.

Well the two best run clubs in Europe have a distinct commonality, don't they? Or has Klopp just got lucky?

Read Bring the Noise by Raphael Honigstein, he'd suggest that Klopp is central to enabling these clubs to develop and improve at a rapid rate. I'm going with his version.

 

[Jippy]

I think this addition was always on the cards. A friend was a PM on the Project. First phase added about 10k I think. Maybe 4-5 years ago? They had that period where they didn’t have home games for a while. Similar to Spurs.

I don't remember that at all.

 

[TheReligion]

Isn't this actually a problem for you? We could get better....

I think you might actually be better off if you were up against Pep's Barca for the foreseeable future. You only have to wait till he leaves after 3/4 years and be ready to pick up the pieces and build serious momentum the way you did in the 90's. With Klopp, who knows how long you'll have to wait. Especially when Real/Barca aren't poaching our top players. Your main hope would be the fact that Klopp hasn't yet rebuilt his team after tearing down the old one. But that could also be because he never really had a fair shot at it. If by chance he and his team turn out to be good at that, then that could be a serious problem for you lot.

That makes no sense. We've already been up against Peps Barca (the best club team ever) and they stopped us winning another two European Cups. Last thing we'd want is to face them again. You lot really aren't that scary in comparison, as good as you may be.

Also everyone thought City would dominate and look what happened to that. No one will absolutely boss the PL era like United under Sir Alex. Klopp won't stay around forever and from memory his rebuilds don't always work out. See Dortmund.

 

[PickledRed]

I don't remember that at all.

They deferred one home match in August - played Burnley away instead of home.

 

[UnrelatedPsuedo]

Well the two best run clubs in Europe have a distinct commonality, don't they? Or has Klopp just got lucky?

Read Bring the Noise by Raphael Honigstein, he'd suggest that Klopp is central to enabling these clubs to develop and improve at a rapid rate. I'm going with his version.

Never in a million years am I going to back a football guy over a business guy when talking about the business.

Klopp was/has been given a platform to perform at his last two clubs. He’s excellent. Perhaps the best coach in the world right now.

BUT... The people that give him an operating framework are far more important. Dortmund were good before him, and great after him.

Just give credit where it’s due. It’s not admonishing Klopp at all.