Liverpool Debt Increases To £87.2m As Club Reveals Latest Financial Results
Liverpool have announced their latest financial figures showing net debt has increased to £87.2m but turnover increased by £5m during last years financial period
Liverpool have announced their latest financial figures on Liverpoolfc.com on Monday morning with the results showing net debt at the club has increased to £87.2m but turnover increased by £5m during the period from 1 August 2011 to 31 May 2012.
The Reds changed their financial year to run alongside the Premier League season and the club claim they remain fully focussed on improving revenue streams, with turnover up by £5m despite not playing in Europe during the financial period.
The increase from the equivalent 12-month period was largely down to an increase in the number of domestic games Liverpool played and Managing Director Ian Ayre told the clubs official website that the results show the club is continuing to make good progress off the field despite a global recession:
“These financial results are now up to 18 months old and show that we have made some good progress towards putting the financial health of the club on a firmer footing. Although we didn’t play in a European competition, we had great success in both domestic competitions which gave a boost to our revenue. In addition, areas like our commercial partnerships continued to grow, despite a global recession.”
“For the equivalent 12 month period, the club’s unaudited turnover has increased by £5million and we were delighted to further strengthen our portfolio of commercial partnerships as we continued to focus on growing successfully at home and internationally.
However, while turnover may have increased, the club’s net debt also increased by £21.8m to £87.2m mainly due to money spent on new players and signing existing players to new contracts. Liverpool revealed that owners FSG injected a further £46.6m into the club via a non-interest bearing intercompany loan, and credit facilities were also refinanced with three major banks to provide £120m over three years.
The club also spent just over £9.5m in ‘exceptional payments’ relating to stadium project costs, general restructuring costs and costs relating to senior employees that had left the club. Ayre added:
“During the period we signed seven new players including Jose Enrique and Sebastian Coates, extended five player contracts including Steven Gerrard and signed eight players from scholar to professional contracts, demonstrating the club’s commitment to youth talent. In addition three players were loaned out and eight players transferred out. As part of our transition, we also implemented a new transfer strategy, ensuring we bring in talented players on sensible contracts that provide value to the club.”
“A lot has happened since the reporting period. Some new players joined the club during the summer and January transfer window which has added depth and strength to the team on the pitch.
“Off the pitch, we forged new partnerships with Warrior, Garuda and Chevrolet – the revenue from these contracts will show in the 2013-14 financial accounts; however, these partnerships continue to demonstrate the strength and reach of the LFC brand.
“We have further strengthened the team with new appointments including Mike Cox, director of merchandising, Billy Hogan, chief commercial officer, and Matthew Baxter, chief media officer – all three bring a depth and wealth of relevant global business experience which will further fuel our desire to grow internationally in key markets.
“We continue to invest in our digital platforms and more recently established 10 new international Twitter feeds in local languages to further engage our global fan base. LFC is now the most active football club on Twitter throughout the world.”
Overall, Ayre was pleased with the results and claims they show the club is continuing to grow its revenue streams and build a solid and sustainable business model. He added:
“These financial results show that we are continuing to improve revenues while managing our cost base and day-to-day operations more effectively and are testament to the hard work and dedication of the board, senior management team and staff right across the club. Any business transition takes time and dedication and we will all remain focused on building a solid and sustainable operating business model which we can build on and further strengthen what we started with Fenway Sports Group over two years ago.” Ayre told Liverpoolfc.com
What do Liverpool fans think of the financial results? Get involved in the comments section below.
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