Liverpool Reports £57M Loss Despite Revenue Surge – What’s Behind the Numbers?

Liverpool has announced a £57 million ($72 million) pre-tax loss for the 2023/24 season, with their absence from the Champions League and rising operational costs playing a major role in the financial setback.

However, the club’s overall revenue increased by £20 million to £614 million, fueled by a £36 million rise in commercial revenue to £308 million.

Why Did Liverpool Post a Loss?

• The biggest financial hit came from a £38 million drop in media revenue, marking a second consecutive season in the red.
• The 2023/24 season was the first since 2016/17 without Champions League football, significantly impacting broadcasting earnings.
• While matchday income rose by £22 million, staff costs—including wages and bonuses—jumped by £13 million to £386 million.
• The club also paid £9.6 million in severance to cover the remaining contracts of Jurgen Klopp and his backroom staff following their departure.

Squad Changes & Transfers

Despite financial losses, Liverpool made major squad investments, spending £150 million on signings including Alexis Mac Allister, Dominik Szoboszlai, Wataru Endo, and Ryan Gravenberch. Meanwhile, the wage bill was eased by the departures of Roberto Firmino, Fabinho, and Jordan Henderson.

Liverpool’s Financial Strategy

Finance officer Jenny Beacham emphasized the club’s commitment to financial sustainability, stating:

“With rising costs, it’s essential to grow income streams year on year. The success of our commercial operations, along with the new Anfield Road Stand, has helped us remain competitive at the highest levels.”

Liverpool’s Current Position

Under new manager Arne Slot, Liverpool is in contention for a historic 20th English top-flight title, leading the league by 13 points with 10 games remaining. The club is also set to face Newcastle in the League Cup final on March 16 and is in the Champions League last 16 against Paris Saint-Germain.

While the financial losses are concerning, Liverpool’s on-field success and commercial growth could put them back on track for a stronger financial outlook in the coming seasons.