Liverpool announced record revenue on Tuesday, but rising costs show the Reds could struggle to compete in future.
Although it didn’t have a fairytale ending, last season was a memorable one for Liverpool as Jurgen Klopp’s side came closer than any English team to winning the quadruple and played every game possible.
Accounts for the season show the Merseyside club posted a small pre-tax profit of £7.5m, reports The Athletic.
Total revenue for the year to the end of May 2022 increased by £107m to a club record £594m. However, Liverpool’s wage bill has also skyrocketed to £366m, an increase of almost 17 per cent over the previous 12 months. That was the main reason why total administrative costs increased by £69 million to £545 million.
This could be a problem for the Reds’ owners FSG in the future, as the club’s wage-to-income ratio stands at 61.6 per cent and is close to the 70 per cent recommended by UEFA.
more stories / Last News
Liverpool’s personnel costs have risen 76 per cent in the last five years, rising from £208m to £366m. The reason this is a problem for the FSG is that wages are eating away at the club’s income, hampering their ability to spend money on new signings unless players are sold.
This could be one of the reasons why FSG is looking for investors, as the income could cover salaries, while the new income could go towards making transfers.
Liverpool remains third nationally in terms of trade revenue behind Manchester United (£262m) and Manchester City (£316m).
