A few days on from Liverpool revealing its financial results for the 2023/24 season and an encouraging update has emerged for the current campaign.
Liverpool announced a mixed picture on Friday from its year-end financial results with an increase in revenue offset by a £57m ($72m) pre-tax loss that was impacted by the lack of Champions League football and the signings of Alexis Mac Allister, Dominik Szoboszlai and Wataru Endo.
It offered a slightly concerning picture ahead of the summer, although Liverpool should still be in a position to make significant investment in the squad. The Premier League’s Profit and Sustainability Rules (PSR) allow clubs to lose up to £105m ($134m) over the course of three years.
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It means the Reds will not be able to lose more than £48m ($60m) over the subsequent two years. It partly explains Liverpool’s meagre spending in the market this season with just Federico Cheisea so far signed under Arne Slot.
The club has since released its full results for the 2023/24 campaign and, as relayed by finance expert Kieran Maguire, Liverpool’s lack of spending this term leaves them in a positive place ahead of the summer.
Under the subheading, ‘player trading’, Liverpool’s financial statement reveals the club have made a £42m ($53m) profit on player sales this season. “Since the end of the financial period, the club has contracted for the purchase and sale of various players. The net amount payable resulting from this activity is £0.1m.
“This activity will be accounted for in the year ending 31 May 2025. The cumulative effect of the Profit and Loss Account since the period end in relation to profit on sales of players is a £41.9m profit.”
That alone doesn’t shape the PSR picture, with more than transfer fees factored into the calculation, but the early update on transfer income gives an indication that the financial outlook is healthy.
Elsewhere, Maguire provided further updates such as player arrivals in the summer of 2023 cost £95m ($121m), while transfer amortisation spending (the act of spreading costs over several years) came in at £114m ($145m). Player sales earned Liverpool £54m ($69m).
Meanwhile, wages rose by four percent last season, revenue was up three percent, but broadcast income fell by 16 percent due to Liverpool not competing in the Champions League.
