Liverpool are set to record £100 million in profit in a single season. They will become the first ever club in football history to record such profits for the 2017/18 season after recording a loss of £21 million the previous season.
Two factors have combined to make this possible, the £71.7 million received for reaching the Champions League Final and the £142 million sale of Philippe Coutinho to Barcelona. A move that’s effectively stalled his career and turned him from Anfield idol to a player sat on the bench at Barcelona.
Actually, a number of other factors have helped put the club back in the black.
The sale of Mamadou Sakho for £26 million to Crystal Palace helped the profits.
The Premier League’s three year TV revenue deal is worth an astronomical £100 million to Liverpool.
The investment in the Main Stand at Anfield to increase capacity from 44,000 to 55,000 has generated an additional income of £12 million per annum.
The renewal of Standard Chartered shirt sponsorship is worth an additional £160 million over a four year period.
However it wasn’t that long ago the threat of going into administration hung its dark shadow over the 126 year old club.
It took Tom Hicks and George Gillett just three and a half years to bring Liverpool FC to their knees with the threat of going into administration looming over the great club. From their arrival as joint owners in February 2007 up to their departure in October 2010, the club, players, and fans endured an emotional rollercoaster of things under the inept duo.
Some of the financial decisions made by Hicks and Gillett bordered on the absurdity, taking out loans of approximately £300 million for buying the club, paying banks and advisors and for a new stadium project. £44.8 million of the this loan was to absorb the club’s current debt at the time. Unbelievably they went on to procure yet another loan of £350 one year later with the Bank of Scotland.
The breakdown in communication between the two owners didn’t help matters as Liverpool FC lurched towards administration. Their fallout with Rafa Benitez was a last straw for most fans, the collateral damage resulted in Fernando Torres leaving the club. Both owners wanted Jürgen Klinsmann to take over as manager much to the chagrin of Benitez himself. Finally with current owner, John Henry and Co. spending £300 million in a hostile takeover of Liverpool against Hicks’s wishes, the end of a turbulent period of Liverpool’s history was over. A £1.6 Billion compensation threat from Hicks over the takeover came to nothing.
Thankfully John Henry and FSG (Fenway Sports Group) have brought stability back to the club.
It’s worth remembering this is an owner in charge of the Boston Red Sox who won the Baseball World Series in 2004 for the first time since 1918. Since then they’ve won it on three other occasions, the latest being in 2018. This is an owner that creates and backs winners.