Liverpool FC last week reported their first profit in seven years, with revenue up 24% for the financial year ending May 31st 2014.
A leading football finance analyst, who runs the Swiss Ramble blog, has predicted that the club “should not experience any more FFP issues, as their revenue will continue to grow.”
That’s because the latest results do not include the sale of Luis Suarez, participation in the Champions League this season, or indeed the future growth of £25 million per season from the new Main Stand once completed in 2016. Plus the “blockbuster” new TV deal that begins the same season.
Furthermore, commercial deals with Vauxhall motors, Garuda Indonesia airline, Dunkin Donuts and Subway, will be added in the next accounting period too.
SR explain that Liverpool had lost £176 million in five years leading up to 2013/14, stating that “many of these losses have been due to FSG having to spend substantial sums on player recruitment in order to repair the damage caused by the previous owners’ lack of investment in the squad.”
Liverpool’s improved finances are in large due to the TV deal that started it’s 3-year cycle at the start of last season, with the Reds earning £97.5 million – more than any other Premier League club last season. That TV deal runs for last season, this and next season, before the even bigger deal – that hit the headlines recently when it was agreed – begins in 2016/17.
These latest results do not include the club’s return to Champions League this season, and the additional income that brings via broadcast, matchday and commercial revenue. Maintaining their place among Europe’s elite competition next season would be extremely healthy.
SR explains that “the real differentiator for the leading English clubs is in fact the Champions League.”
Full analysis at Swiss Ramble, here.