Soccer giants Liverpool made a record pre-tax loss of $57 million across the 2023-24 English Premier League season, despite generating record revenue over the same period.
The team generated a record £614 million ($773.6 million) in turnover across the season, powered by substantial growth in matchday (up £22 million) and commercial (up £36 million) revenue.
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Those matchday revenues were aided by the expansion of the side’s Anfield Road stand, which brought in 7,000 additional seats, of which 1,800 are premium hospitality options.
Commercial revenue meanwhile was boosted by the onset of four new major commercial deals with courier firm UPS, smartphone brand Google Pixel, home fitness tech company Peleton, and software company Orion Innovation, as well as the extension of existing partnerships with the likes of beer brand Carlsberg, and Japanese publisher Kodansha.
Collectively, GlobalData Sport analysts estimate those new and renewed partnerships to be worth US$12.65 million per year to the club.
As per the GlobalData Sport Business of the Premier League 2023-24 report, Liverpool boasted estimated total sponsorship revenue of $186.23 million from 24 major sponsors, third in value only to eventual champions Manchester City and their crosstown rivals Manchester United despite being ninth in sponsorship quantity.
Despite that, the club’s media revenue dipped substantially by £38 million from the 2022-23 season, as a result of the club’s failure to qualify for the elite pan-European UEFA Champions League competition and instead its participation in the less lucrative secondary Europa League.
Administrative costs at the club, totaling £600 million, were up also by £20 million on the previous campaign, thanks in part to the wage bill growing by £13 million up to £386 million, along with the fact that the side competed in more games (58) than the year prior (52).
As such, the club’s pre-tax loss stands at $57 million, the most ever for the Merseyside team.
Speaking on the club’s financial outlook, Liverpool chief financial officer Jenny Beacham said: “Operating a financially sustainable club continues to be our priority and, with the continued increase in costs, it’s essential to grow income streams year on year to maintain financial stability.
“The success of our commercial operations, together with the opening of the new Anfield Road Stand, has increased our revenues during this reporting period, which demonstrates our desire to continue to compete at the highest levels of football in the men’s and women’s games.”
In the 2024-25 campaign, the men's team is on track to win the Premier League, and has also qualified for the latter stages of the UEFA Champions League, meaning there is a chance that the club will both return to profitability and further grow its revenue in the next year’s set of accounts.
Indeed, that the club was able to make record revenue without the allure of the Champions League will only give it confidence for the coming years.
Beacham continued: “The global appeal of this football club continues to be phenomenal and is the underlying strength and opportunity we have for continued growth. We also take our social responsibilities seriously, using our global appeal to increase our community impact and sustainability efforts, in which we are leading the way across the football industry.
“We will continue to operate in accordance with football’s financial rules and regulations while maintaining investment opportunities in our operations, infrastructure, and players. Our focus right now is to finish this season as strong as possible, both on and off the pitch, to fulfil our collective ambitions for success.”
In the meantime, Liverpool is reportedly soon to agree a lucrative new long-term kit supply deal with German sportswear giant Adidas from the 2025-26 season.
The brand is set, according to media, to become the Premier League club’s kit supplier when US rival Nike’s five-year contract expires at the end of this season.
Adidas has secured a five‑year contract after beating off competition from Nike and fellow German brand Puma in a tender process.
The deal, which will run through the 2029-30 season, will reportedly be worth more than £60 million per year for Liverpool, putting it among the biggest kit deals in the English top flight.
