Following a positive annual financial report, Liverpool FC has highlighted the importance of its global appeal, despite its 2023/24 finances not presenting an entirely favourable outlook.
For the 2023/24 season, the club reported a pre-tax loss of £57m, attributing this to several factors. Of note, media revenue fell by £38m to £204m, largely due to the club’s participation in the UEFA Europa League.
However, with Liverpool competing in the UEFA Champions League this season, media revenue is expected to rise in the next report, especially with the new tournament format offering more matches.
Furthermore, administrative costs rose by £38m to £600m. Jenny Beacham, Chief Financial Officer at Liverpool FC, attributed this increase to higher salaries and overheads across the club, which helped support commercial revenue growth and the addition of more matchdays compared to the previous period.
“Operating a financially sustainable club continues to be our priority and, with the continued increase in costs, it’s essential to grow income streams year on year to maintain financial stability, Beacham said.
“The success of our commercial operations, together with the opening of the new Anfield Road Stand, has increased our revenues during this reporting period, which demonstrates our desire to continue to compete at the highest levels of football in the men’s and women’s games.”
New look Anfield drive new revenue
Despite the loss, which will need to be carefully monitored to ensure Liverpool remains in compliance with the league’s Profit and Sustainability Rules (PSR), the club achieved considerable commercial success.
As highlighted by Beacham, Liverpool’s new Anfield Road Stand increased attendance capacity, which contributed to a £22m rise in matchday revenue.
However, the club’s greatest financial success came away from the pitch, reflecting the growing importance of global fanbases and operations in football.
Liverpool secured four new global partners over the season – UPS, Google Pixel, Peloton and Orion Innovation – while also extending contracts with Kodansha and Carlsberg. These deals helped boost the club’s commercial revenue to £308m, an increase of £36m compared to the previous year.
While these sponsorships provide financial gains, the true value often lies in the collaborative efforts between Liverpool and its partners. These partnerships often target new supporters in international markets, a strategy that has been especially effective for Liverpool, given its strong global following.
Beacham noted: “The global appeal of this football club continues to be phenomenal and is the underlying strength and opportunity we have for continued growth.”
This appeal also drove over one million downloads of the official LFC Store app, which now accounts for nearly 20% of e-commerce sales.
All of these revenue streams contributed to a total of £614m, a £20m increase. This number is expected to rise again next year if the club can maintain its strong form and secure the Premier League title.
While the benefits of a growing fanbase are transformative, Liverpool does not rely solely on trophies to maintain that support. The club’s annual report also highlights the work of the LFC Foundation, which had a significant impact on the community during this period.
According to the club, the foundation supported over 127,000 people, contributed more than £13m in added benefits to the Liverpool City Region and generated further positive outcomes.
“We also take our social responsibilities seriously, using our global appeal to increase our community impact and sustainability efforts, in which we are leading the way across the football industry,” Beacham concluded.
“We will continue to operate in accordance with football’s financial rules and regulations while maintaining investment opportunities in our operations, infrastructure and players. Our focus right now is to finish this season as strong as possible, both on and off the pitch, to fulfil our collective ambitions for success.”
