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Will Liverpool’s £50m Loss Impact It Playing In Europe Next Season?

Bill Shankly wall displayLiverpool today announced that they made a £50m loss in the 2012-13 financial year, a loss that appears to have them failing to meet Uefa’s Financial Fair Rules.

If you take the £50m loss, and in the £41m loss for a ten-month period to 31 May 2011, total loses ar Liverpool are much higher than the €45m (£37m) total allowed under FFP. Liverpool, which stated that the figures show it is making “good progress” financially, did not comment on whether it is likely to be considered in breach of FFP when Uefa assesses clubs in the next two months.

Liverpool’s turnover showed a relatively modest increase to £206m in 2012-13 from the £169m reported for a ten-month period to 31 May 2011 in the previous accounts. That was mostly accounted for by significantly increased commercial income, up from £64m to £98m due to new sponsorship deals.

Liverpool’s wage bill of £132m, is small compared to its title rivals. Manchester United for example paid £181m in wages in 2012-13, while Manchester City’s wage bill was £233m, more than £100m more than Liverpool’s.

Liverpool Managing director Ian Ayre said of the results:

“These results demonstrate that the financial health of the club continues to make good progress as we continue our journey to transform the club on and off the pitch.

“Over the past four or five years, revenue has been consistently increasing from around 170 million pounds in 2009 to over 200 million pounds today, and external debt has decreased significantly to less than 50 million pounds.

“With a hugely supportive ownership group, we have taken a measured approach to bring back financial stability to this great club by ensuring it is properly structured on and off the pitch.”