Liverpool reveal large losses
Liverpool Football Club have announced losses of £49.8m before taxes in their latest set of annual accounts, report the Telegraph , placing into doubt the club’s ability to conform to the Uefa’s Financial Fair Play rules.
The figures running to the end of May 2013 have called into question the club’s chances of working within the rules, which only allow a loss of up to £38m over three seasons - with the club also making a loss of £40.5m for the period of August 2011 to May 2012, and losing £49.3m the 12 months prior to that.
And the club also found itself falling three places to 12th in the Deloitte’s Football Money League last season, making them the highest ranked club in the money league not to be in the Champions League.
However total revenue did break through the £200m pound mark for the first ever time to £206m, while the team has enjoyed success on the pitch this season, and are on course to qualify for Europe’s premier competition - which would increase revenue significantly.
The club’s Managing Director Ian Ayre was keen to point out that despite the loss making the headlines, the club had made significant progress both in increasing commercial revenue (up from £64m to £98m) and in reducing net bank debt (down from £65m to £45m).
Ayre said: “These results demonstrate that the financial health of the club continues to make good progress as we continue our journey to transform the club on and off the pitch.
"Over the past four or five years, revenue has been consistently increasing from around £170m in 2009 to over £200m today, and external debt has decreased significantly to less than £50m.
"With a hugely supportive ownership group, we have taken a measured approach to bring back financial stability to this great club by ensuring it is properly structured on and off the pitch.
"During the period, we signed six new players including Daniel Sturridge, Philippe Coutinho and Joe Allen, and we extended seven players' contracts which included Daniel Agger, Martin Skrtel, Martin Kelly, Lucas Leiva and Raheem Sterling - adding depth and strength to the squad while continuing to develop young talent. In addition, nine players were transferred out and eight players were loaned out.
"These financial results are now up to 18 months old and we have continued to make further progress since this reporting period.”
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