Liverpool transfer boost as director confirms record-breaking revenue can be reinvested in players
Liverpool have announced record-breaking revenue from last season, prompting their managing director to explain how the money will be reinvested.
Last season was much more successful for Liverpool than the current one has been. In the 2021-22 campaign, they won the FA Cup and League Cup, and were runners up in the Premier League and Champions League.
It was also a successful period for them financially. In the year-long period up to May 31, 2022, they achieved a record-breaking revenue of £594million. Indeed, that figure represented a rise of £107m compared to the previous year.
However, they only recorded a profit of £7.5m before tax, due to rising administrative costs and a high wage bill after several contract extensions.
Still, there has been off-the-pitch growth for Liverpool. In turn, their fans will be hoping to see some money put back into strengthening the team.
After all, Liverpool have struggled to replicate their form from last season in 2022-23. Despite starting the season by winning the Community Shield, their defences of their two domestic trophies each ended in the fourth round.
They are currently outside the top four in the Premier League – and have been all season – while they have given themselves a mountain to climb after losing the first leg of their Champions League last-16 tie 5-2 to Real Madrid.
Hence, Liverpool might need new energy and ideas on the pitch. Their midfield and defence have been under particular scrutiny.
There have been some concerns about how much Liverpool will be able to spend in the summer, particularly given they like to operate with a low net spend. But managing director Andy Hughes has hinted that funds will be made available for the transfer market, as well as other areas.
Director explains Liverpool finances
Speaking via the club’s website, Hughes said: “Some of the numbers in these latest accounts look slightly skewed as a result of the previous reporting period being impacted by the global pandemic. However, the underlying strength of our financial position remains strong and we continue to operate a sustainable club which is our main objective from a financial perspective.
“It was really great having supporters back at Anfield and returning to some sort of normality after a really challenging period for everyone.
“For our men’s team to play the maximum 63 games in this reported season is an incredible achievement and winning more trophies is exactly what we continue to strive for. Our women’s team also had success – gaining promotion to the WSL was a great achievement and exactly where we need them to be competing.
“The cost of running a football club does continue to rise. But we maintain our position of growing this club with significant investment with new and existing players signing contracts and the construction of the new Anfield Road Stand which we look forward to coming on stream in the summer.
“In the last five years we have invested over £250m in infrastructure and created world-class facilities for our players, staff and supporters.
“What’s important now is to finish this season as strong as possible, both on and off the pitch, while we continue to manage costs and explore opportunities for growth in our commercial operations so we can continue to reinvest revenues in players and infrastructure.”
It will be interesting to see how much Liverpool do go on to spend in the summer, and how sustainable an approach they follow.
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