Revealed: How Much did FSG Pay Jurgen Klopp? – Liverpool’s Finances Analysed | OneFootball

Liverpool’s Financial Overview: The 2023-24 Season in Review

Liverpool Football Club’s financial figures for the 2023-24 season have been published, revealing a mixed bag of increased revenues, record losses, and significant payouts to former staff, including Jurgen Klopp and his team.

Financial Outcomes Amidst Challenges

The club encountered a record pre-tax loss of £57 million during this period, despite an increase in overall revenue by £20 million, reaching a new high of £614 million. This financial year saw Liverpool claim the Carabao Cup and secure a third-place finish in the Premier League. Nevertheless, the absence from Champions League football notably impacted their finances, resulting in a sharp £38 million decrease in media revenues.

Revenue Streams: Growth Against the Odds

Despite these challenges, Liverpool’s financial strategy appears robust, particularly in commercial revenues, which surged by £36 million to £308 million. This rise was fuelled by lucrative agreements with high-profile partners such as UPS, Google Pixel, Peloton, and Orion Innovation, alongside extended partnerships with Kodansha and Carlsberg.

The retail sector particularly flourished, achieving record sales across its seven global outlets, including a new store launch in Dublin. The club’s official retail app saw over a million downloads, accounting for nearly 20% of its e-commerce sales. Furthermore, Liverpool’s membership scheme expanded to over 250,000 supporters, while its social media channels gained 37 million new followers.

Exploring the Wage Bill Dynamics

Despite high-profile departures like Jordan Henderson and Roberto Firmino, Liverpool’s wage bill rose from £373 million to £386 million. New signings such as Alexis Mac Allister and Dominik Szoboszlai contributed to this increase. The club also extended contracts for eleven players, including Kostas Tsimikas and Conor Bradley. This increment is partly attributed to Champions League bonuses from the previous season, which were paid during this financial year.

Klopp’s Departure and its Financial Implications

The departure of Jurgen Klopp and his backroom staff resulted in a combined payout of £9.6 million, covering the remaining duration of their contracts. This change marked the end of an era and ushered in a new management phase under Arne Slot, aiming to build on Klopp’s formidable legacy.

Photo: IMAGO

Addressing the Debt and Investment

Liverpool’s management under Fenway Sports Group (FSG) showed a strategic approach to debt and infrastructure investment. The bank debt reduced by £10 million to £116 million, largely attributed to the redevelopment of the Anfield Road Stand, an FSG-supported project that did not require external financing. The stand’s renovation, costing around £90 million, has increased the stadium’s capacity, bolstering matchday revenue potential, which saw a £22 million increase from the previous season.

Club Statements and Future Outlook

Jenny Beacham, Liverpool’s chief finance officer, emphasised the club’s commitment to financial sustainability despite rising costs. The successful expansion of commercial operations and the new Anfield Road Stand have been crucial in boosting revenues. Beacham also highlighted Liverpool’s significant global appeal and dedication to social responsibility and sustainability efforts, key drivers for future growth and stability.

In conclusion, while Liverpool faces financial pressures, particularly from missed Champions League football, their proactive commercial strategies and infrastructure investments underscore a resilient pursuit of growth and excellence. As the current season progresses, the club remains focused on achieving on-field success and leveraging its global brand to ensure long-term financial health and competitive edge.