Is Liverpool FC in debt?
The Reds’ success on the sector is being matched off it, with a record turnover of £533m ($688m) also confirmed for the year ending May 2019.
That figure boosted by the club’s second-place finish within the Premier League last season, also because of the lucrative new UEFA Champions League broadcast deal and a series of latest commercial partnerships.
The period also saw unprecedented investment within the club’s playing squad. Liverpool spent £223m ($288m) therein regard, with Alisson Becker, Naby Keita, Fabinho, and Xherdan Shaqiri all joining the club during the accounting period. The Reds also handed out long-term contracts to no fewer than 11 first-team players, including Mohamed Salah, Sadio Mane, Roberto Firmino, and club captain Jordan Henderson.
They were also ready to press ahead with their new £50m ($65m) training facility in Kirkby, with work on the state-of-the-art complex set to complete in June, in time for Jurgen Klopp and his team to maneuver certain pre-season training.
The latest accounts show that each one three major revenue streams have risen sharply, with media revenue increasing by £41m to £261m ($337m), commercial revenue up by £34m to £188m ($243) and match revenue increasing by £3.5m to £84m ($108m).
Liverpool’s football boots in Dubai and Liverpool kit in Dubai has wage bill that also climbed from £263m ($339m) in 2017-18 to £310m ($400m) in 2018-19. It remains at around 58% of the club’s turnover.
Crucially, though, the club has been ready to increase its profits while significantly reducing the debt on its books.
Their net bank debt has been cut from £46m to only £12m ($15m), while their intercompany debt, which relates to a loan club owners Fenway Sports Group (FSG) took bent finance the building of Anfield’s new Main Stand, is down from £100m to £79m ($102m). Liverpool decides to use their existing credit facilities to finance their proposed £60m ($77m) redevelopment of the Anfield Road stand, with no need for a second loan from FSG.
Last year, Liverpool recorded a pre-tax profit of £125m ($161m), although that figure has helped significantly by the sale of Philippe Coutinho to Barcelona.
The Reds’ Champions League success last season, though, plus their remarkable Premier League campaign this point around and a lucrative new five-year kit affect sportswear giants Nike, means their off-field growth is merely likely to continue. It is seeing anticipation that they’re going to soon surpass Manchester United, currently the Premier League’s No.1 club, in terms of revenue. In just about every way imaginable, Liverpool Football Club is flourishing immediately.