Liverpool explain £57m pre-tax loss but three major factors set to bolster income for 2024-25 season

Liverpool have released their financial accounts for the 2023-24 season with a pre-tax loss of £57m announced by the club. The Reds did earn more than £300 million in commercial revenue for the first time but other factors contributed to a loss in their latest accounts.

The Reds recorded a £9m loss for the 2022-23 campaign, with their bigger loss for the 2023-24 season mostly down to a drop in media revenue. Jenny Beacham, LFC’s chief financial officer, 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.

“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.”

LFC explain reasons for £57m loss

In a summary of their accounts, Liverpool highlighted how a £38m drop in media revenue played a big role in their £57m loss. The Reds overall media revenue for the 2023-24 season was £204m. This was due to the club’s non-participation in the Champions League although this figure was slightly offset by the club finishing third in the Premier League table.

The club’s overall revenue rose from £594m to £614m but it was also highlighted how administrative costs rose by £38m to £600m. Liverpool did earn more in matchday revenue following the full opening of the extended Anfield Road stand. It rose by £22m.

Beacham added: “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.”

Why Liverpool’s revenues are likely to rise by end of 2024-25 season

Liverpool’s revenues are set to rise in 2024-25 for at least three reasons. The Reds’ are poised to finish higher in the Premier League table while they are also back in the Champions League. A higher domestic finish coupled with their participation in the elite European competition gives two reasons why their media revenue will rise again for the 2024-25 reporting period.

With the club confirming a £22m jump in matchday revenue, that figure is also set to bolstered further by the end of the reporting period. The extended Anfield Stand did not open until February 2024, meaning there was less than half a season with the stadium completely full. With the stand now open for an entire campaign, the Reds are expected to announce a further increase in matchday revenue. The Anfield Road stand contains corporate and hospitality seating, which will provide a bigger financial boost for the club.

In summary, a higher Premier League finish, participation in the Champions League and a full season of fans filling seats in the extended Anfield Road end will result in increased revenues for the club. Other factors such as commercial revenue also have the potential to rise but this is unlikely to be confirmed until the 2024-25 accounts are released early next year.