Liverpool has announced a return to profitability, posting a pre-tax surplus of £15.2 million, a positive development following their Premier League-winning season and subsequent financial challenges.
This upturn, however, coincided with the club recording the highest wage bill in the top flight.
A significant £60 million surge in media revenue was the primary driver behind the improved finances, largely attributed to the team reaching the last 16 of the Champions League, a step up from the Europa League quarter-finals the previous year.
Alongside this, matchday revenue climbed by £14 million to £116 million, and commercial revenue increased by £15 million to £323 million.
Despite the healthy revenue streams, expenditure on staff soared by £42 million to £428 million.
This substantial rise was due to performance bonuses following their title success, along with contract renewals for key players such as Mohamed Salah and Virgil van Dijk, an increase in staffing numbers, and general matchday administrative costs.
These staff costs have more than doubled since the 2016-17 season, now surpassing Manchester City, whose employee costs for the same period stood at £408 million.
These financial figures for the 2024-25, with an accounting period ending on May 31, do not encompass Liverpool’s substantial £450 million summer spending spree on new signings aimed at overhauling the squad.
The return to profit marks a positive shift after two consecutive years of pre-tax losses, which saw the club report a £9 million deficit in 2022-23 and £57 million in 2023-24.
The club also faces ongoing cost challenges, with utility costs having risen by 107 per cent and business rates by 286 per cent over the last four years.
Jenny Beacham, the club’s chief financial officer, commented on the results: "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."
She highlighted the reported season as "a great example of how this can work, with record revenues alongside the men’s team winning our 20th league title."
Beacham added: "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."
She acknowledged the "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."
Beacham concluded by stating that since the reporting period, the club has "invested significantly to continue to enhance our playing squads, investing in the club’s present and in its future too," and remains "fully committed to operating in accordance with football’s financial rules and regulations."
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