Liverpool’s strong media revenue growth has seen overall losses reduced to just £4.8m in their latest accounts.
That means the club’s loss-before-tax number has shrunk by £41.5m from the previous year’s results.
In new figures released on Friday – a period covering the Reds’ 2020 Premier League title win following a three-month pause in play – Liverpool announced that their bottom line had dropped by £3m to £487m.
The financial results, which cover up until May 31 2021, inevitably sees a huge impact on match-day revenue, which is down by nearly 95 per cent to just £3m.
Jurgen Klopp’s side played virtually the entirety of the 2020/21 campaign behind closed doors and were only able to welcome back 10,000 supporters for the final game of last season against Crystal Palace.
However, those losses have been offset by growth in both media and commercial areas as the Reds’ posted healthy numbers in both sections.
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Media revenue rose by £64.5m to a whopping £266.1m, while commercial numbers increased by £0.2m to £217m.
The increase in media revenue is linked to the prolonged Premier League season in 2020 when the action resumed in late June and the Reds played their final nine games of the season during the reporting period.
All nine of those games were televised on either Sky Sports or BT Sport, with Liverpool playing seven of them as champions of England.
The impact of the COVID-19 pandemic halted financial progress in areas such as retail stores and stadium and museum tours, but a total of 13 new partners – including the first-ever kit deal with Nike – helped massively.
Their partnership with the world’s biggest sportswear manufacturers officially began in August 2020 and immediately led to record-breaking kit sales that saw the Reds sell the third most shirts in Europe in 2021.
According to research conducted by the Euromericas Sport Marketing Group, Liverpool sold 2.45m units, behind only Real Madrid (3.05m) and Bayern Munich (3.25m) last year.
Loss before tax fell by as much as £41.5m – to just £4.8m – and the figures see the club looking set to emerge from a period of deep financial uncertainty in a relatively strong position going forward.
Last year it was revealed that the club lost £59m in media revenue and £13m in match-day earnings in just three months of 2020, while the loss-before-tax figure stood at £46m.
Nearly 12 months on from those returns, Liverpool appear to be on much more stable footing.
The period covers the arrivals of both Thiago Alcantara and Diogo Jota, who joined in September of 2020 for a combined fee that could rise to around £70m, while a dozen contract renewals that include Virgil Van Dijk, Fabinho, Trent Alexander-Arnold and Harvey Elliott are also factored in.
As a result of the pandemic, mobile transactions increased by 89 per cent on the club’s online retail store, while three new physical stores were opened in Thailand and Singapore.
Liverpool’s managing director, Andy Hughes, highlighted the position of strength the club finds itself in on the other side of the worldwide pandemic as work continues on the Anfield Road expansion nearly 18 months after the opening of the £50m AXA Training Center in Kirkby.
Mr Hughes said: “These latest results demonstrate the significant financial impact of the global Covid pandemic which affected all areas of the business.
“We have worked really hard these past years to get us into a really strong and sustainable financial position.
“Despite navigating through a very challenging and uncertain period, overall revenue remained flat, demonstrating the underlying financial strength of the business.
“It’s been an unprecedented time on and off the pitch. Our men’s team winning our 19th league title was a truly fantastic achievement, but not having supporters in the stadium to share the moment was not how we wanted it to be.
“Our women’s team also continues to grow and the hard work and strategic changes to the women’s section is seeing a challenge for promotion to the WSL this season.
“The continued support from our ownership has seen over £130m invested in infrastructure over the past three years and we are delighted with the great progress being made on the Anfield Road expansion project, which will see the capacity of Anfield rise to 61,000, on completion in 2023.
“It is imperative however that we continue to live within our means and operate within football’s regulations and financial fair play.
“But we’ll continue to reinvest on and off the pitch to further strengthen our position and compete at the highest levels right across the club.
“We are hopefully nearing the end of the pandemic but our priority remains to keep people safe.
“We’ll also continue to do great work in the community to support those who live in and around Anfield and across the city region, particularly those who have been impacted by the pandemic.”