Liverpool FC's annual accounts for 2011-12 shows their debt increase to £87.2M in the latest figures for 2012 revealed today.
The club announced their accounting figures covering the 10 months from August 1st 2011 to May 31st, as they intend to switch their accounting period from June.
These figures are the first released that solely cover Fenway's ownership of the club. The previous figures included the changeover from Tom Hicks and George Gillett to FSG.
Overall for the period of August 2011 to May 2012, Liverpool
- Made a pre-tax LOSS of £40.5M (this was comparable to the £49.3M loss they made in the full 12 months prior)
- Saw debt increase by £21.8M (now up to £87.2M from £65.4M a year before)
- Costs of £9.5M relating to matters such as 'The Stadium Project', player installment payments and 'general restructuring' (which probably relates to coaching staff primarily).
The period in question saw Liverpool win the League Cup and reach the FA Cup Final, although they were not in the Europa League that season.
LFC transfers between the periods of August 1st 2011 and May 31st 2012 include:
IN: Enrique (£8M), Coates (£4.9M)
OUT: Raul Meireles (£12M), David N'gog (£4M), Inusa (£3.7M), Mavinga (£1M), Konchesky (£1.5M), Ayala and Ince (combined £1M).
NET: approx £10M profit
However, the club purchases most players in installments so parts of the fees for Downing, Henderson and Adam are also covered in this period.
Liverpool also wrote off £40M on the value of the playing squad (down from £160M to £120M).
Media revenue was down slightly by £2.5m to £62.8M. Liverpool were not in the Europa League, however they did reach two cup finals.
TV money is expected to balloon by approximately £30M in the 2013-14 due to new domestic and oversees rights deal.
Match day revenue was only slightly down to £40.9M (from £42.3M). Ticket prices were slightly cheaper in the domestic cups than would have been the case in the Europa League.
Commercial revenue appeared stagnant compared with the year before. (£64M over 10 months, compared to £77.5M in the 12 months prior)
LFC indicated they have spent a further £38M since May 2012 on player purchases and more significantly contract extensions.
Staff wages remained broadly the same - by far Liverpool's largest expenditure - at around £2.5M a week.
Ian Ayre tried to dispel suggestions of problems in the running of the club.
"We have money to pay out and money coming in, just like any business.
"The difference in football is some of the swings are significant, so if you look at player trading, we may need to make investments as we do in the summer before our key revenues come in: big sponsorships cheques, big ticket revenues, all the media revenues etc."
"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."
The club pointed out that the results were now quite old, and said matters had improved since last summer.
"Off the pitch, we forged new partnerships with Warrior, Garuda and Chevrolet - the revenue from these contracts will show in the 2013-14 financial accounts; however, these partnerships continue to demonstrate the strength and reach of the LFC brand."
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