Liverpool invests record £190 mn on squad in season of overall growth

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Liverpool Football Club has announced a record £ 190 million ($ 246 million) investment in its squad. The Liverpool financial results released by the club yesterday mark numerous firsts in the Premier League club’s overall growth – ranging from commercial revenues to social media fan following.

The Liverpool financial statements show that £137 mn ($177 mn) came into the club from player transfers – all of that, plus further investment, has been reinvested back into the squad taking the total outgoings on new players in excess of £190 mn ($ 246 mn).

During the reporting period for the year to May 31, 2018, Mohamed Salah, Virgil van Dijk, Andy Robertson, Alex Oxlade-Chamberlain and Dominic Solanke all came in, with Philippe Coutinho, Mamadou Sakho, Lucas Leiva and Kevin Stewart leaving the club. Since the reporting period last year, investments have continued with Naby Keita, Fabinho, Alisson Becker and Xherdan Shaqiri – all purchased to further strengthen the playing squad, something that the club’s ownership group, Fenway Sports Group, has consistently committed to over its tenure, Liverpool has stated in a write-up on its official website.

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Turnover increased during the period by £90mn to £455mn ($ 116 mn to $ 589 mn) which represents sustained growth across the club and enabled the further investment into the squad. All three revenue streams saw rises with media revenue increasing by £66mn to £220mn ($ 85 mn to $ 285 mn), commercial revenue increasing by £17m to £154m ($ 22 mn to $ 200mn) and match revenue increasing by £7 mn to £81mn ($ 9 mn to $ 105 mn).

The majority of those increases are a result of qualification for the Champions League and the additional games progressing through to the final. The club did not participate in any European competition in the previous season, 2016-17. Profit before tax for the period was reported at £125m compared to £40m in the previous year.

Andy Hughes, LFC’s chief operating officer, said: “What we have seen is a stable and sustained improvement in the club’s financial position over recent years. This growth and increase in revenue has enabled us to significantly reinvest both in the playing squad and the football operational infrastructure.

“Financial results do fluctuate depending on player trading costs and timing of payments but what’s clear in these latest results is the further strengthening of our underlying financial footing and profits being reinvested in the squad and infrastructure.

“Since the reporting period, which is now nearly 12 months old, we have continued reinvesting in the playing squad from those areas of growth. In addition, the capital investment in our new training complex in Kirkby is well underway which will provide first-class amenities for our players and staff, and will vastly improve sports facilities for the community of Kirkby.”

In the year of highs, the following points highlight the club’s overall groth:

  •  Biggest reinvestment in squad in club’s history
  • Continued investment in football operational infrastructure
  • Further growth in commercial revenue with eight new partnerships
  • 125th season celebratory kit generated record sales
  • Moved up two places to seventh in the Deloitte Football Money League
  • Social media platforms grow to 60million followers

Liverpool has moved up two places to seventh position in the Deloitte Football Money League with all three main revenue streams increasing on the previous financial year. During the reporting period, the club signed eight new partnerships, including the new shirt sleeve sponsor with Western Union and global partnerships with Falken Tyres and Joie. In addition to the eight new partners, the club renewed with four partners which further demonstrates the strength of those relationships, consistency of delivering value to partners and the global appeal of the football club. It was also during this period that the club celebrated its 125th anniversary and the commemorative jerseys were the most popular selling shirts in the club’s history.

LFC also had significant digital growth and became one of the fastest-growing football clubs on social media, including the Instagram platform gaining three million followers at a 71 percent annual growth rate. Facebook and Twitter continued to grow and saw 27million fan interactions on Twitter during the reporting period. Overall, the club’s social media platforms had a 14 percent growth rate taking the total to more than 60million followers across digital channels. In May 2018, LFC had the highest viewing figures on YouTube ever for a Premier League club and third of any sports club globally.

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