Liverpool FC Financial Report

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Liverpool FC shareholders received their annual financial report today (31st January), ahead of the club’s 113th AGM, and found very positive figures.

The key points of the report include:

  • £7.53m profit, against the loss of £18.2m last year
  • Huge decrease in percentage spent on wages
  • Massive increase in percentage of income from Cup competitions
  • Actual figure for winning the Champions League

    Also detailed is severance pay, TV revenue, merchandise increase, problems with renewal of sponsorship deal with Carslberg, income from sales of Diouf, Baros and Josemi.

    Interestingly, there is nothing about the new stadium; neither money spent so far on the planning nor the expected or impending costs of construction work. This is sure to be something which will be raised at the AGM.

    Profit & Loss and Net Debt Figures

    Liverpool FC reported a profit of £7.53m after tax, against a loss of £18.2m last year. The club’s net debt is recorded as £17.1m – slightly up from £15.4m and due to purchases in the transfer market.

    Wages and Severance Pay

    This is a huge positive for the club, £64.2m has been spent on wages – 53% of the club’s income and down from the massive 72% of the previous year. The ‘acceptable’ percentage for Premiership clubs is around 60%.

    £10.75m was lost as severance pay to Gerard Houllier and other members of the coaching staff who left; including Phil Thompson and Sammy Lee.

    Player Sales and Income

    Sales of the Milan Baros, El Hadji Diouf and Josemi brought in a total of £13.845 million.

    Purchase of Jan Kromkamp costing £4.345 million.

    Therefore meaning Baros and Diouf were sold for £9.5m in total. It is speculated Diouf went to Bolton for a fee of around £4.5m.

    Television Revenue

    A surprising 6.7% fall, although largely due to the new domestic Premiership deal. The club received £28.699m (compared to £30.773m in 2004). This figure is expected to remain similar for the next three years.

    Cup Competitions

    Increase of a massive 480%, obviously largely due to the Champions League success. The figure is up from £5.454m to £31.723m.

    Champions League

    Total revenue generated was £28.8m.

    Premiership Income

    4% increase, due to the capacity at Anfield being maximised. 2004 figure was £22.005m, 2005 is £22.928m.

    Sponsorship

    This figure is up 13%, although is the one disappointing aspect of the report. This is due to the delay in renewal with sponsors Carlsberg which lead to problems with Reebok and seems to have had a knock on effect which means the club will have a new kit sponsor (Adidas) this year.

    Retail and Merchandise

    The delay in the sponsorship deal with Carlsberg (see above) meant the late release of the new away shirt, despite a high demand and therefore sales of which are not included in this area, which is for up to July 31st 2005 only.

    The figure is reported at £12.312m, up 5% from £11.701m the previous year.

    Predictions and hopes for next financial year

    The club predicts losses through bonuses for the Champions League win which were included in contracts of players and staff.

    Money will be spent on squad rebuilding but at the same time trying to restrict wages to the reasonable 60% figure.

    Predicted increase in retail and merchandise for 2006.

    AGM Details

    The annual general meeting for shareholders takes place on 23rd February .

    Last year’s stormy scenes are not expected to be repeated, key issues will no doubt be the failure to capatalise on Champions League success in terms of sponsorship and the knock-on effect on retail income, the new stadium and future plans.

    Article Copyright © This Is Anfield (.com)

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