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Liverpool’s massive wages during CL and PL successes revealed

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Liverpool posted the second-highest wage bill in England in their 2019/20 review, which accounts for 66 percent of their turnover – or 66p for every £1.

The club released their report for the 2019/20 financial year on Tuesday, which revealed a £46 million pre-tax loss due to the effects of the COVID-19 pandemic.

This is expected to be even worse in 2020/21 as Liverpool predicting an eventual loss of £120 million in revenue, with fans effectively not permitted to attend games for over a year.

But the 2019/20 campaign saw Liverpool follow up their Champions League success with a first-ever Premier League title, which saw massive bonuses paid out to Jurgen Klopp, his staff and his players.

Analysis of the numbers – with the accounts to the end of May 2020 – by business of football expert Swiss Ramble highlights how the Reds’ wage bill rose by £16 million last year, with a five percent increase from £310 million to £326 million.

This is due to a “highly incentivized bonus scheme,” which includes payouts for winning the Premier League and Champions League.

Man City (£351m) were the only club in England with a higher wage bill than Liverpool, with Man United (£284m), Chelsea (£283m) and Arsenal (£225m) making up the rest of the top five.

Swiss Ramble reports that Liverpool have seen the highest wage increase of the Premier League‘s big six over the last three years, at 56 percent.

Worryingly, the club’s wages-to-turnover ratio increased from 58 percent to 66 percent, and though this was only the 14th-highest across the Premier League, it suggests the Reds have taken a big loss as their success coincided with the pandemic.

Though it should never be considered a positive, Liverpool’s struggles both domestically and in Europe this season will see fewer bonuses paid out to players and staff, with the wage bill decreasing.

Liverpool will look to strengthen their squad again this summer, though possibly missing out on the Champions League could have a major impact on recruitment.

It is unlikely they will adopt a different approach in terms of wages, however, with their philosophy of lower base salaries and higher bonuses expected to remain to ensure no upset to the existing structure.

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