Liverpool announce UK£42m in pre-tax profits

Liverpool announce UK£42m in pre-tax profits
English soccer giants Liverpool have announced pre-tax profits of UK£42 million (US$54.1 million) for the 2018/19 financial year.

Whist the figures in the Premier League club’s latest annual accounts are down on last year’s world record profit of UK£125 million (US$162 million), the period covered saw Liverpool invest heavily in their playing squad.

For the year ending 31st May 2019, the filing shows turnover rose by UK£78 million (US$100 million) to UK£533 million (US$686 million) thanks to increased media, commercial and matchday revenue. That enabled Liverpool to outlay UK£223 million (US$287 million) on signing new players and hand out 11 new contracts.

A new and improved broadcast deal for the UEFA Champions League, the elite European club soccer competition, helped Liverpool’s media revenue increase by UK£41 million (US$52.8 million) to UK£261 million (US$336 million) as they beat fellow Premier League side Tottenham Hotspur in the final in Madrid.

A second-place finish in the Premier League and battle for the title with Manchester City saw commercial revenue rise by UK£34 million (US$43.7 million) to UK£188 million (US$242 million) and matchday revenue go up by UK£3.5 million (US$4.5 million) to UK£84 million (US$108 million). The club signed nine new commercial partnerships, including a training kit partnership with AXA worth a reported UK£20 million (US$25.7 million) a season.

The club claimed their retail operation enjoyed a record-breaking season in sales with footfall surpassing a million fans in the official stores. The Reds’ international expansion plans have also grown with a new retail partner announced in Malaysia, a shop-in-shop opened in Thailand and new selling channels on ecommerce platform Amazon in the US, Canada and Germany. In total, ecommerce orders were shipped to more than a record 190 countries worldwide.

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 UK£220 million 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 maintained their seventh position in the Deloitte Football Money League having moved up two places from ninth during the previous financial year.

Digitally, the club’s global social media followers increased by 26 per cent to nearly 70 million. Liverpool’s official YouTube channel has reached 2.5 million subscribers and they are the most-followed club in the Premier League. Their Twitter following also increased by 11 per cent to 13.5 million and reached 59 million total engagements during the 2018/19 season, which Liverpool claim is six million more than any other club in English soccer’s top flight.

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