Despite having a tremendous season on the pitch, Liverpool are not quite matching that effort off the pitch. Club officials, of course, are putting a positive spin on it, as is their wont, but with UEFA’s Financial Fair Play rules kicking in, they will want to get their financial house in order, sooner rather than later.
Liverpool have announced an annual loss of £49.8 million before tax in their latest financial accounts. The financial announcement was for the period ending May 2013, Brendan Rodgers’ first season in charge. It was during this period that they signed Sturridge (pic below), Allen and Coutinho. Managing director Ian Ayre isn’t worried, “It’s definitely not something I believe anyone should be worried or concerned about. It is seasonal – our debt goes up and down.”
The figures to the end of May 2013, could place in doubt the club’s ability to conform with Uefa’s Financial Fair Play rules, which allow a loss of €45m (£38m) over three seasons. The club made a loss of £40.5m for the period of August 2011 to May 2012, and a £49.3 for the 12 months prior to that.
Liverpool’s debts now stand at £45.1m, reduced by £19.9m over the year in question. That figure was largely achieved via the £46.8m interest free, inter company loan to the club by the owners, Fenway Sports Group (FSG).
Liverpool are well in the hunt for a coveted Champions League place this season and qualifying for that will be a big financial boost. Ian Ayre (pic below), quoted in the Liverpool Echo, is at pains to point out that FSG are good owners.
“They recognise the huge investment they made to buy Liverpool and as smart investors they know that they have to continue to invest to realise the true value of their investment long term. They’ve been very supportive to the business, to Brendan. This year we’ve not played any European football – but we continue to get support from the ownership. I can’t say enough about all the support and commitment we have from them and despite what you read they don’t take a penny out of Liverpool Football Club. On that basis they are great investors and great owners to have.”
For a full breakdown on the financial statement, click here
