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Liverpool announce £46m pre-tax loss for the 2019/20 season

Liverpool made a £46m pre-tax loss for the 2019/20…

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liverpool announce 46m pre tax loss for the 2019 20 season
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Liverpool have announced a pre-tax loss of £46m for the 2019/20 season, ending 31 May 2020, reflecting the enormous impact that the coronavirus pandemic has had on the club’s finances.

The pandemic took hold in the UK in March 2020 and forced Premier League and international football to be suspended until it was safer to resume in the summer. That meant more than two months of the season could not be included in the annual accounts.

Liverpool were successful on the pitch but lost money off it
Liverpool were successful on the pitch but lost money off it | Laurence Griffiths/Getty Images

As a result, Liverpool recorded a £59m drop in media/broadcast revenue from the previous season, as well as a £13m fall in matchday revenue. Commercial income did grow by £29m during what was a tremendously successful season on the pitch, but overall revenue fell £43m to £490m.

The significant reduction in revenue for the season failed to cover the club’s annual costs – Liverpool initially tried to make use of the UK government’s furlough scheme for non-playing staff in order to lower expenses until a public backlash forced a swift rethink.

All in all, the difficult circumstances made for a loss before tax of £46m.

The three-month pause that delayed the 2019/20 campaign meant Liverpool played nine games after the cut-off date for the season’s account, four of which were at Anfield.

Broadcasting rebates cost income that will be made up for in the 2020/21 accounts, although the continued closure of Anfield, save for three games with 2,000 fans in November and December, will ensure that matchday revenue remains almost completely wiped out until next season.

But 2019/20 wasn’t all doom and gloom. Likely as a result of the team’s success on the pitch en-route to winning the Premier League title, LFC Retail experienced significant growth and the club sold record numbers of the red home shirt, as well as opening retail stores in Thailand, Singapore and Vietnam. There was also a 32% growth in the club’s social media and digital following.

“This financial reporting period was up to May 2020, so approaching a year ago now. It does, however, begin to demonstrate the initial financial impact of the pandemic and the significant reductions in key revenue streams,” managing director Andy Hughes said, via LiverpoolFC.com.

Liverpool sold more shirts than ever before in 2019/20
Liverpool sold more shirts than ever before in 2019/20 | AFP Contributor/Getty Images

“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.”

For more from Jamie Spencer, follow him on Twitter and Facebook!

Source: 90 Mins

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