Liverpool has announced a £8.9 million reduction in its financial losses for the 10-month period ending May 31, 2012, but revealed debts have increased by £21.8 million to £87.2 million.
The English Premier League club’s figures reflect a restructuring of its accounting period to align with the football season. Liverpool had reported a loss of £49.4 million for the 12 months through to July 2011 as the club counted the cost of writing off the new stadium project developed by its former owners. These losses have been reduced to £40.5 million in the new 10-month window and despite not playing in Europe in that period, the club said turnover increased during the equivalent 12-month period due to an increase in domestic fixtures.
However, the club’s net debt has increased by £21.8 million to £87.2 million due to a number of factors including player instalment payments and investment in the playing squad. Liverpool also said that exceptional payments of just over £9.5 million were made relating to a number of costs including the long-running stadium project, general restructuring costs and costs relating to senior employees leaving the club. “These financial results are now up to 18 months old and show that we have made some good progress towards putting the financial health of the club on a firmer footing,” said Liverpool’s managing director Ian Ayre. “Although we didn’t play in a European competition, we had great success in both domestic competitions which gave a boost to our revenue. In addition, areas like our commercial partnerships continued to grow, despite a global recession.”
Ayre added: “These financial results show that we are continuing to improve revenues while managing our cost base and day-to-day operations more effectively and are testament to the hard work and dedication of the board, senior management team and staff right across the club. Any business transition takes time and dedication and we will all remain focused on building a solid and sustainable operating business model which we can build on and further strengthen what we started with Fenway Sports Group over two years ago.”