Liverpool returned to profit after their Premier League-winning season with a pre-tax surplus of £15.2million ($20.5m) but as a consequence they had the top flight’s highest wage bill.
A £60m ($80.9m) increase in media revenue provided the largest uplift to finances, with the team reaching the last 16 of the Champions League compared to the Europa League quarter-finals the previous year being significant.
However, performance bonuses for their title success, plus the contract renewals of high-profile stars Mohamed Salah and Virgil van Dijk, an increase in staffing numbers and general matchday administrative costs meant expenditure on staff rose by £42m ($57m) to £428m ($577m).
Those costs have more than doubled since 2016-17 and now put them ahead of Manchester City, whose employee costs for the same season were £408m ($450m).
As these figures relate to the 2024-25 campaign, with the accounting ending period ending on May 31, they do not take into account Liverpool’s £450m ($607m) summer spending spree on the likes of British record transfer Alexander Isak, Florian Wirtz and Hugo Ekitike to overhaul the squad.
But after two years of pre-tax losses — £9m ($12m) in 2022-23 and £57m ($77m) in 2023-24 — the Reds are back in the black as, in addition to improved media income, matchday revenue increased by £14m ($19m) to £116m ($156m) with commercial revenue up £15m ($20m) to £323m ($435m).
However, in the last four years utility costs have increased by 107% and business rates by 286%.
“We make no secret of our desire to run and operate a financially sustainable club, to grow revenue streams, and to do all we can off the pitch to help bring more success on it,” said chief financial officer Jenny Beacham.
“The 2024-25 season is a great example of how this can work, with record revenues alongside the men’s team winning our 20th league title.
“The challenge for us is to continue with our growth, through the incredible work that we do in areas such as our partnership portfolio and retail offerings, as well as continuing to diversify our focus to best serve our global fanbase.
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“The club does face significant cost challenges, including rises in administrative, staffing and operational costs, alongside the need for us to compete at the highest level of the game, across our men’s and women’s teams.
“Since this reporting period we have invested significantly to continue to enhance our playing squads, investing in the club’s present and in its future too.
“As always, we’re fully committed to operating in accordance with football’s financial rules and regulations, while continuing our focus on providing the best possible platform for success on and off the pitch for our supporters here in Liverpool and around the world.”
