Home Sports The two reasons for Liverpool's record £ 125m win as club releases...

The two reasons for Liverpool's record £ 125m win as club releases financial figures – Mirror Online

Liverpool recorded a record profit of £ 125 million before tax last year thanks to their participation in the Champions League final and the sale of Philippe Coutinho.

The previous record was placed by Leicester (£ 92.5 million pre-tax) the season after winning the Premier League and in the Champions League.

Overall, the financials of the Reds for the year ending May 2018 show an increase of £ 85 million in the previous twelve months, a year in which they did not have European football.

This was largely due to the increased income both on and off the field of a run to the Champions League final in Kiev, where they were defeated by Real Madrid.

The financial statements show that £ 137 million in the club has ended up transferring players – most of Coutinho's January sale to Barcelona in a deal worth up to £ 142 million – during the accounting period.

Liverpool reached the Champions League final last season

Everything was reinvested, plus more, as the club strengthened their team significantly with the signings of Mohamed Salah, Alex Oxlade-Chamberlain, Andrew Robertson, Dominic Solanke and Virgil Van Dijk, who as the world's most expensive defender arrived for £ 75 million.

Since the end of the reporting period, club owners Fenway Sports Group have spent more money on players with Naby Keita, Fabinho, Xherdan Shaqiri and Alisson Becker – in short, the world's most expensive goalkeeper of £ 65 million – which cost $ 165 million, but which deals will be displayed in the figures for the current year.

However, not all investments have gone to players, with the redevelopment of £ 50m from the academy's club in Kirkby with a new foundation for the first training program.

That will be complete before the start of the 2020/21 season, which means that the biggest financial blow will be felt in the current fiscal year.

Revenue increased by £ 90 million to £ 455 million in the last period, with all three revenue streams increasing: media increased £ 66 million to £ 220 million, commercial up by £ 17 million to £ 154 million and revenues increased by £ 7 million to £ 81 million.

That level of revenue on the match day is close to the absolute limit of Liverpool, given the limitations of Anfield's 54,000 capacity and without further development of the Anfield Road End, a decision that has yet to be taken by FSG.

Liverpool sold Philippe Coutinho to Barcelona

It was extra stimulated by the extra matches in the Champions League and although the involvement of the club in the title races of the Premier League this year can not generate additional income from extra matches, it will make them more attractive for a commercial front.

And although the club would like to take advantage of their success on the field, most of their current commercial sponsorship is tied to long-term deals.

"Although the financial results fluctuate depending on the trading costs of players and the timing of the payments, what is clear from the latter results is the further strengthening of our underlying financial position and profits that are reinvested in the team and infrastructure, "said chief financial officer Andy Hughes.

"Since the reporting period, which is almost 12 months old, we have again invested in the player platoon from those growth areas.

"We are making solid progress throughout the club, football costs continue to rise year after year and it is important that we continually review and manage our operating costs to ensure that we are in the right form for future success.

"With the continued support of our ownership group, performance in the field and maintaining our priority to reinvest in the team, we remain focused on fulfilling all our football ambitions."

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