Liverpool FC have recorded an annual profit for the first time in seven years. Figures released for the financial year ended May 31, 2014 show the club made a pre-tax profit of £0.9million – a considerable improvement on the £49.8million loss of the previous year.
The figures underline the progress the club have made since their takeover by Fenway Sports Group, the American investment company run by John W Henry, in 2010.
FSG inherited huge debts from previous owners Tom Hicks and George Gillett and saved the club from financial catastrophe.
The latest figures, which show a 19 per cent rise in revenue, also come just a week after the club were cleared of breaching UEFA’s Financial Fair Play regulations following an investigation by the European governing body.
On the negative side, the club’s net debt has increased by £12.2million to £57.3million.
No reason has yet been given for this rise but the debt situation still compares favourably to the position when FSG rescued the club following the ruinous ownership of Hicks and Gillett. At that point the club’s net debt stood at £237million.
Revenue has increased year on year under FSG, with the latest increase toB£255.6million attributed largely to a rise in income from the Premier League‘s TV deal. The club list TV money in a media revenue category, which overall has risen by 46 per cent to £100.9million.
Commercial revenue has also increased by five per cent to £103.8million with the club having tied up seven new partnership deals.
The figures cover a spectacular period for the club on the pitch when they went close to winning a first league title since 1990 and qualified for the Champions League.
Chief executive Ian Ayre is pleased to see the club back in the black. Ayre said: “We continue to make good financial progress. Although these results are nearly 12 months old, they demonstrate that the transitional period we’ve been through over the past four years has stabilised the club and provided a platform for growth.
“Revenue has been consistently increasing from around £170million in 2009 to over £250million today and our commercial revenues continue to add strength to our overall results.
“During these past transitional years, it was important that we took a measured approach to bring back financial stability by ensuring the club is properly structured both on and off the pitch.”
Matchday revenue also increased by £5million as a result of a successful pre-season tour of Asia and Australia.
Further matchday increases are anticipated on the home front in future with Anfield’s Main Stand currently undergoing major redevelopment.