By Paul Nicholson
March 3 – The legacy effect of Luis Suarez at Liverpool lives on with the club reporting a record a profit of £60 million for the year to end May 2015. Suarez, sold for an estimated £75 million to Barcelona in June 2014, gave the numbers a huge boost but the club insists that money has been reinvested in buying new players.
Liverpool reported strong financial figures across the board with revenue up 16.5% to £297.9 million. The £60 million profit compares to a £900,000 profit in the previous 12 months – the first time the reds had been in the black for seven years.
Breaking down the income streams; media revenue increased by 21.5% to £122.6 million; commercial revenue increased by 12% to £116.3 million; and match day revenue increased by 15.9% to £59 million.
Match day revenue will be boosted further during next season with the opening of the new Main Stand which will increase Anfield’s capacity to 54,000 from the current 45,522 and will boost in-stadia facilities, though that will not be reflected in the next set of financial figures.
Similarly the new bumper Premier League TV deal, which starts in August 2016, will not be reported in the next publically available financial figures.
In the reported figures match day revenue went up due to cup runs while commercial revenue was boosted by12 new partnerships and renewed deals. The club opened 180 new retail outlets around the world including a standalone store in Malaysia. The international markets have continued to prove lucrative for the club into the current financial year.
Liverpool chief executive Ian Ayre said: “This year the profit reported has significantly increased which is mainly a result of the sale of Luis Suarez in July 2014 and that has already been reinvested into the playing squad.
“Our real financial position is closer to breakeven and it is the underlying revenue growth that’s important and provides us with the long term stability.”
Liverpool’s US owners Fenway Sports Group converted £69 million of debt into equity in the year as well as sinking £49 million into stadium expansion costs.
Ayre added: “These results are almost a year old now but all areas of the Club have continued making good progress and growth.
“The cost of football is rising with the increase in player transfer fees and wages but our ambition remains the same and we have continued to invest in strengthening the playing squad since the reporting period.”
All they need to do now is win a trophy. Over to you Jurgen.
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