By David Owen
February 8 – Liverpool have confirmed that they have become the first football club in history to report an annual pre-tax profit of more than £100 million.
As predicted exclusively by insideworldfootball on January 21, the Merseysiders today disclosed that their run to the Champions League final combined with transfer activity to produce the record result.
Profit before tax for the year to 31 May 2018 ultimately weighed in at a towering £125 million, up from £39.8 million. Top-line growth was just as impressive, with turnover soaring £90 million to £455 million, exactly as predicted here.
Full analysis will have to await arrival of the accounts in Companies House. However, Andy Hughes, chief operating officer, pointed to what he called a “stable and sustained improvement in the club’s financial position over recent years.
“Financial results do fluctuate depending on player trading costs and timing of payments,” Hughes added. “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.”
Liverpool, vying with Manchester City and Tottenham for this season’s Premier League title, explained that £137 million came into the club from player transfers during the period – mainly from the sale of Philippe Coutinho to Barcelona. Even though total outgoings on new players, such as current stars Mohamed Salah and Virgil van Dijk were said to have exceeded £190 million, the asymmetry of the way in which transfers in and out are accounted for under the applicable rules will certainly have resulted in a large profit from player sales contributing mightily to the bottom-line result.
All three of the club’s revenue streams were said to have seen rises, with media revenue up £66 million to £220 million, commercial revenue ahead £17 million to £154 million and match revenue increasing £7 million to £81 million.
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