Liverpool report pre-tax loss of £46m due to impact of coronavirus pandemic

It is understood the total impact of the coronavirus pandemic will have hit Liverpool to the tune of £120m by the time supporters are allowed to return; commercial revenue rose by £29m but that failed to compensate for drop in media and matchday revenue

By PA Media

Image: Matchday revenue at Anfield fell by £13m

Liverpool have reported a £46m pre-tax loss for the financial year ending May 2020 - which equates to an £88m negative swing from their position just over 12 months ago.

The loss of significant media revenue and matchday income due to Covid-enforced empty grounds contributed to the huge difference, and it is understood the total impact of the pandemic will hit the club to the tune of £120m by the time supporters are allowed to return.

In March 2020, the club announced a profit of £42m, the fifth time in the previous six years Liverpool had been in profit, but that surplus was wiped out as a result of last season initially being suspended in March and then restarted behind closed doors.

The impact of the pandemic is largely why club owners Fenway Sports Group last month sold a 10 per cent share for £543m to private investment firm RedBird Capital in order to provide continuity and stability in a volatile economy.

There was a financial boost from the club winning their first Premier League title as, although that did not happen until June 2020, Jurgen Klopp's side were on the verge of being crowned champions when lockdown was imposed.

Advertisement
FREE TO WATCH: Highlights from Liverpool’s draw with Newcastle in the Premier League

Also included in their income for the year was about £3.4m for winning the 2019 Champions League final as it fell just outside the previous financial reporting period, which benefited from the huge amount of revenue for reaching the final, and £3.8m for winning the UEFA Super Cup in August 2019.

Eight new partnerships were announced during this period while Carlsberg renewed their existing long-term association.

Also See:

As a result, commercial revenue rose by £29m to £217m but that could not compensate for media revenue dropping by £59m to £202m and matchday revenue was down £13m to £71m. Wages across the club also rose to £325m from £310m.

LFC Retail experienced a significant increase in growth with the Premier League champions' new Nike home kit breaking record sales while international expansion plans also added growth via new retail stores in Thailand, Singapore and Vietnam.

Live Renault Super Sunday

"This financial reporting period was up to May 2020 so approaching a year ago now," said managing director Andy Hughes.

"It does, however, begin to demonstrate the initial financial impact of the pandemic and the significant reductions in key revenue streams.

"We were in a solid financial position prior to the pandemic and since this reporting period we have continued to manage our costs effectively and navigate our way through such an unprecedented period.

"We can now look ahead to the conclusion of this season and hopefully a more normal start to next season.

"It's no secret that supporters have been greatly missed at Anfield over the past year and we look forward to having them back."

Outbrain