Liverpool has returned to profitability following their Premier League championship season, reporting a pre-tax profit of £15.2 million ($20.5 million). However, this achievement came alongside the league’s highest wage expenses.
A £60 million ($80.9 million) rise in media revenue was the primary contributor to their financial boost. The team’s advancement to the Champions League round of 16, as compared to the previous year’s Europa League quarter-finals, played a key role in this increase.
Nonetheless, the costs associated with performance bonuses for their title win, as well as contract renewals for marquee players like Mohamed Salah and Virgil van Dijk, the increase in personnel, and rising matchday administrative costs led to a £42 million ($57 million) increase in staff expenditure, bringing total staffing costs to £428 million ($577 million).
This figure has more than doubled since the 2016-17 season and exceeds that of Manchester City, whose employee costs for the same period were £408 million ($450 million).
These statistics pertain to the 2024-25 season, concluding on May 31, and do not reflect Liverpool’s £450 million ($607 million) summer expenditure on players, such as British record transfer Alexander Isak, Florian Wirtz, and Hugo Ekitike, aimed at revamping the squad.
After two years of pre-tax losses – £9 million ($12 million) in 2022-23 and £57 million ($77 million) in 2023-24 – the Reds are back in positive financial territory. This recovery is attributed not only to improved media income but also to an increase in matchday revenue by £14 million ($19 million), reaching £116 million ($156 million), and a rise in commercial revenue by £15 million ($20 million) to £323 million ($435 million).
However, in the past four years, utility costs have surged by 107% while business rates have risen by 286%.
Chief Financial Officer Jenny Beacham commented, “We are committed to operating as a financially sustainable club, focusing on expanding our revenue streams, and doing everything possible off the pitch to enhance our on-field success.” She added, “The 2024-25 season exemplifies this approach, as we achieved record revenues while the men’s team secured our 20th league title.”
She further noted, “Our challenge is to maintain this growth by optimizing our partnership portfolio and retail endeavors, as well as diversifying our focus to effectively serve our global fanbase.”
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Beacham emphasized, “The club faces significant cost challenges, including increases in staffing, operational expenses, and administrative costs, alongside the necessity to remain competitive in both our men’s and women’s teams.” She concluded, “Since this reporting period, we have made significant investments to enhance our playing squads, focusing on both the club’s present and future.”
She reaffirmed, “We are fully committed to adhering to football’s financial regulations while striving to provide the best possible platform for success for our supporters in Liverpool and globally.”