Business

Liverpool FC reports first profit for seven years

Jordan Henderson (C) of Liverpool celebrates with teammates after scoring the opening goal during the Barclays Premier League match between Liverpool and Manchester City at Anfield Image copyright ALLSPORT/Getty Images

Liverpool Football Club has reported a profit for the first time in seven years, largely as a result of a rise in revenue from the Premier League.

The club reported a pre-tax profit of £0.9m in the year to 31 May 2014, compared with losses of £49.8m a year earlier.

Revenues were 19% higher at £255.6m, the club added.

Highlighting the importance of TV broadcast revenue, Liverpool said media revenues increased 46% to £100.9m.

That compared with a 5% increase in commercial revenue to £103.8m, as the club agreed seven new sponsorship deals.

It said several more had been agreed in the new financial year.

The club also reported a £12.2m rise in net debt to £57.3m.

But it added overall debt had decreased from £237m since 2010 when Fenway Sports Group, the US investment company run by John W Henry, took control of the club.

Liverpool has also now moved back up to ninth place in Deloitte's Football Money League, having dropped to 12th place the previous year.

'Good progress'

The figures cover a stronger period for the club on the pitch, when they came close to winning their first league title since 1990 and qualified for the Champions League.

Chief executive Ian Ayre said he was pleased to see the club back in the black.

Mr Ayre said: "We continue to make good financial progress. Although these results are nearly 12 months old, they demonstrate that the transitional period we've been through over the past four years has stabilised the club and provided a platform for growth.

"Revenue has been consistently increasing from around £170m in 2009 to over £250m today and our commercial revenues continue to add strength to our overall results."

He said match-day revenue also increased by £5m, mainly as a result of the club's successful pre-season tour in Asia and Australia. He said the club would now look to grow this area, following the announcement of the main stand expansion at its Anfield stadium.

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