LONDON: Liverpool will provide Jurgen Klopp with maximum financial assistance to overhaul his squad this summer after they published record financial results.
The accounts to the year ending 31 May, 2015 showed Liverpool had increased their revenue to £297.9million and their profit before tax was £60m, compared to a figure of £0.9m for the previous 12 months.
Luis Suarez’s £75m sale to Barcelona in July 2014 was the reason Liverpool, whose wage bill – the fifth highest in the Barclays Premier League – rose from £143m to £166m, were able to post such a big profit.
The funds received from Barcelona were also immediately reinvested in the signings of Dejan Lovren, Adam Lallana, Alberto Moreno, Lazar Markovic and Mario Balotelli.
Ian Ayre, Liverpool’s Chief executive, insisted the accounts show Liverpool are making ‘good progress’ but, more than anything, enabled them to be in a position where they can provide Klopp with funds to restructure when the window opens.
‘We are very fortunate in that everything we generate goes back into the team and you cannot spend any more than you generate and then some,’ said Ayre. ‘We have seen in these results the owners have injected further cash into the business for our stadium and written off some money.
‘The support is there as it has always been. There has never been a situation where we haven’t backed the manager and there will be no difference with Jurgen as we move forward towards the summer. Those discussions will go on and we will do what we need to do on his guidance.
‘Everyone can expect what they have always seen to date with the club which is to give the manager the support he needs.’
Another significant issue to come to light from the accounts was the fact Fenway Sports Group, Liverpool’s owners, have converted £69m debt into equity; in simple terms, it means they have written off that money.
When FSG arrived in October 2010, Liverpool’s debt was £237m following the disastrous reign of Tom Hicks and George Gillett; the debt now stands at £47m and Ayre says they are committed to a long-term project, not looking to sell the club.
‘This is just cleaning up our balance sheet and supporting the club,’ said Ayre. ‘Rather than someone pointing at a potential sale they should be pointing to another level of commitment. These guys have been unwavering in their commitment. You only need to drive past Anfield and see the size of their commitment. It is growing every day.’
Liverpool’s commercial revenue is up to £116.3m and they now have 180 retail outlets around the world. In 2007, the club only had two shops in Merseyside and Ayre explained this gives the club more ability to back Klopp in the transfer market.
Ayre said: ‘To say we are closer to 200 around the world that shows the size of the business growing and that is so important to the long term stability. All of these revenue streams are important because they all go back in not just TV revenues or player sales they all go back in (to buying new players. It is great that the business is growing throughout.’
