Liverpool Finances 2022/23

The Back Of Love

Liverpool’s 2022/23 financial results covered a season when they finished fifth in the Premier League, thus qualifying for the Europa League, and reached the last 16 of the Champions League.

That’s more than decent by most standards, but it was nowhere near as good as the Reds’ previous season, when they finished runners-up to Manchester City in the Premier League and were beaten in the final of the Champions League by Real Madrid. Oh, and they also won both English domestic cups.

The impact was felt in the club’s financials.

Profit/(Loss) 2022/23

Liverpool swung from a £7m pre-tax profit to a £9m loss, as revenue was static at £594m, but operating expenses rose £20m (3%) to £632m and net interest payable was up £2.0m to £4.5m. This was partly offset by profit on player sales increasing £6m from £28m to £34m.

Loss after tax was smaller at £7m, due to a £2m tax credit.

As a result of the worse performance on the pitch, Liverpool saw a drop in both broadcasting revenue, down £19m (7%) from £261m to £242m, and match day, down £7m (8%) from £87m to £80m.

However, this was compensated by a £25m (10%) increase in commercial from £247m to a club record £273m.

Despite the flat revenue, Liverpool’s expenses still grew, albeit not by a huge amount. Wages rose £7m (2%) from £366m to £373m (another club high), while player amortisation climbed £5m (5%) from £103m to £108m and other expenses increased £5m (4%) from £132m to £137m.

Although a loss is rarely good news, Liverpool’s £9m pre-tax deficit is actually the third best result to date in the Premier League, only surpassed by the profits made by Manchester City £80m and Brentford £9m.

Their sustainable approach is in stark contrast to many other clubs, as some very large losses have already been reported for last season, including Aston Villa £120m, Southampton £87m, Newcastle United £73m, Wolves £67m and Arsenal £52m.

Player Sales 2022/23

Liverpool’s profit from player sales rose £6m from £28m to £34m, mainly from the transfers of Sadio Mané to Bayern Munich, Neco Williams to Nottingham Forest, Takumi Minamino to Monaco and Ben Davies to Rangers.