http://www.liverpoolfc.com/news/latest-news/181005-ayre-progress-continues-to-be-made and http://www.liverpoolfc.com/news/latest-news/180970-lfc-announces-financial-results Our latest financial figures have been published. 1. made a profit on period up to May 31 2014. 2. expects to make profit this year too. 3. revenues up outside of increased tv deal.
Liverpool Football Club today announced that solid financial progress continues to be made as it filed its annual accounts for the year to May 31, 2014. Revenue increased by 19% to £255.6m Media revenue increased by 46% to £100.9m Commercial revenue increased by 5% to £103.8m Profit before tax for was £0.9m compared to a 2013 loss of £49.8m Moved up three places to 9th in Deloitte's Money League Net debt increased by £12.2m to £57.3m but overall debt has decreased from £237m when FSG took over in 2010 For the first time in seven years, the club returned a small profit and revenue increased by 19 per cent to £255.6m - mainly as a result of the rise in media revenue from the Premier League TV deal. Since Fenway Sports Group (FSG) completed its takeover of Liverpool FC in October 2010, revenue has steadily increased year on year and the club has transformed to a sustainable business. Chief executive, Ian Ayre, said: "We continue to make good financial progress. Although these results are nearly 12 months old, they demonstrate that the transitional period we've been through over the past four years have stabilised the club and provided a platform for growth. "Revenue has been consistently increasing from around £170 million in 2009 to over £250 million today and our commercial revenues continue to add strength to our overall results. "During these past transitional years, it was important that we took a measured approach to bring back financial stability by ensuring the club is properly structured both on and off the pitch. "We continue to add strength and depth to our playing squad while continuing to develop young talent. During the period we offered 13 professional contracts to Academy players, including Rossiter, Dunn, Lloyd Jones, Sinclair and Peterson." LFC has now moved back up to ninth place in Deloitte's Football Money League having dropped to twelfth place the previous year. Ayre added: "During the period, the club continued to report good progress commercially announcing seven new partnerships. Media revenue also continued to grow and we announced four new TV deals and seven renewals. In addition to TV, we continued to expand our fan engagement reach with the introduction of 19 new social media platforms in 52 countries which doubled our social media followers to over 30 million worldwide. "Our match day revenue increased by £5million, mainly as a result of our successful pre-season tour in Asia and Australia, and we can now look to grow this area following the historic announcement of Anfield's Main Stand expansion. "Since this reporting period we have again continued to make good commercial progress announcing several new partnerships including New Balance, Nivea Men, Pru Health Vitality and Instaforex which demonstrates the global appeal of the LFC brand. "We have also opened 60 franchised shops across Indonesia and new LFC stores in Malaysia and Dublin. We also had a very successful pre-season tour in the US. "With a hugely supportive ownership, we have brought financial stability back to this football club and we now have the right structure, platform and ambition to continue growing on and off the pitch."
As Liverpool FC today filed its annual accounts for the year to May 31, 2014, chief executive officer Ian Ayre explained the key aspects of the solid financial progress that continues to be made. Ian, the club has today announced its financial results for the period June 1, 2013 to May 31, 2014. Can you give us an overview as to what these results mean? I think, most importantly, it's a return to profit for the club for the first time in seven years, so a small profit shown in these results, which are obviously from a year ago. If you look at the overall plan and project we've been on with this ownership since they took charge, it's been very much the return of the club to a sustainable position and to continue to build on that. I think the announcement of these results today shows the progress we've made and the progress we continue to make. That's important, particularly in this type of environment that football is in today. Green shoots with a small profit - the first for seven years. Is that solely down to the TV deal? No, not at all. Although these set of results reflect the first year of the current TV deal, which had an uplift, we also saw an increase in our commercial profits due to the great work across all of our commercial areas and particularly around partnerships. And also a fantastic improvement in the way we do our pre-season tours and the revenue that we generate from those. It's a great commercial effort and that, and a combination of media and some matchday improvements, have all added to the pot, so to speak. It has seen Liverpool move up to ninth place in the Deloitte Money League - is that a benchmark of progress when you compare it to other clubs across Europe? I think it's kind of a double-edged sword. It's great to be back in the top 10 and it shows progress of sorts, but I think the Deloitte league is a result of various assets that various clubs have and that they exploit. If we take something like stadiums, some of our competitors in that top 10 would have a much larger stadium than we have or will ever have. For that reason you can't always compete at the same level in every area, but being back in Europe this year, which we weren't in that year, is a big part for us. It's one of the big keys and improving stadium and matchday revenue is important, and obviously with the recent announcements about our new Main Stand, that will lead us towards that. But we don't really look at the Deloitte league as a benchmark for us; we look at how we are performing as a business in our own environment, particularly in the Premier League. On the football side of things, it is not just the first team that is important, 13 professional contracts were awarded to Academy players during this period. How important is it to see young players coming through the ranks? Very much so. It's a big part for all of us involved in the football side of the business. It's a big part of the plan. We know we have a very young side and we have a manager who plays and likes to play young players and develop them, and within those contracts the one example would be Jordan Rossiter, who made his debut this season in the League Cup. Only yesterday against Manchester City you saw Jordan Williams on the bench, so it's great to see those young players getting new contracts but it's also great to see them on the pitch and featuring in the squad. We'll always look at that and we'll always continue to develop and bring new young players to the club. That period was a great example of that. These financial results are to the end of May 2014. What progress has been made since then? I'm pleased to say that we are heading in the same direction, so it will certainly show a profit again this year, a greater one than last year, and that's down to the hard work and effort that people have put in across the club. Generating these great results comes from work by everybody throughout the club, and that's great because we've said for the last few years now that this is a one-club mentality and we are all working together on this. Whether it's working well in the transfer market or whether it's working well commercially, or whether it's working well operationally, all of those things add to the costs and revenues of the club and it's pleasing to be able to sit here, as we said, seven years on showing a first profit, but also in our eighth year on being able to show a profit again this year, which is absolutely what we will expect. Bringing the picture right up to date, UEFA has announced that Liverpool have been cleared of any breach of the Financial Fair Play rules - what does that mean and how significant is it for Liverpool and the fans? As we said, in this sort of new era of football and Financial Fair Play, it's important that we have a sustainable business. We were one of the clubs called in for investigation, but that was really about looking at our results and how they've been interpreted, and we're pleased to say myself and our chief finance officer and other members of our team went out to Nyon, made our presentation and showed our results. That was a result of explaining where our position was, explaining some of the revenues that were in there and some of the costs that were in there. We met with the criteria ultimately, so that's a good place for us to be. We need to build on that and we need to continue to be sustainable, and the more sustainable we can be the more we can compete and we want to compete within the rules. We've always been a big advocate of Financial Fair Play and it's great that we met the test.
sounds fun and games if we are making a small profit while investing in playing staff and it will be interesting to see how we go as the rebuild of anfield goes including net debt
Nice to see we're making money and have turned things around. No doubt the TV money has played a huge part though. Helps us comply with FFP so all good
the figures show the tv money is up 46% that has to be SKY tv deal only and not CL money which we will see in figures next year. A year on year 5% increase in commercial revenue is a good return. in the end the debt is 57mil and thats not much compared to the TV money coming in shortly. If the club is aiming to break even and reinvest everything then that's great for us and exactly what FSG said. I'm sure they are finding ways to suck plenty of revenue of their own out of worldwide commerical deals
Increased revenues of circa £50m and yet still only returning a notional profit, whilst adding a further £12m to your debt.
strategy... as in spend it while its there. just like you did with lukaku. 57mil is like hmmmmmm ok lets pay that off out of our cut of the 5 bil in tv money... then lets buy a 50mil player as well.... hows it feel to be in the top 20 revenue clubs in the world tobes... you can't begrudge is 9th when you are rich yourself now.
My point was, that despite the massive TV revenue hike you're still spending beyond your means. The current years figures will dictate whether the chase for the CL gravy train was actually worth the effort
Making profit is spending beyond our means? How about you worry about your wages being about 79% of turnover first
Those figures don't include the 50% increase in kit manufacturer, the new 60+% increased TV deal or the CL income.
The increase in debt is maybe long term borrowing that is not showing up on balance agger so suggest part of stadium build That can be the only thing you are referring to right?
Net debt increase way beyond the nominal profit Oh and our wages are 58% of our turnover, we made a £23m operating profit last year as well as reducing net debt by £17m Get back to your wumming as this convo is for the grown ups
We've improved our finances while also challenging for the title and getting back into Europe. You've blown your one big day out on the donkey Lukaku and are sinking towards relegation. But keep coming on to slag us off while accusing others of WUMing
I ws talking about the financials, you're merely talking total **** - as per. So **** off and get back to your sticklebricks little boy
#meltdown Us: 5th biggest revenue, 5th in the league, improving financially, improving football performances, stadium expansion underway You: 8th biggest revenue, 14th in the league, nothing to show for the money, on track for relegation next season, stadium falling apart
