The first report concerning Liverpool Football Club’s finances during the coronavirus pandemic have been released today, and as expected the club have taken a hit across the board on revenues leading to a reported pre-tax loss of £46M for the financial year ending May 31, 2020.
The largest loss reported was in media revenue, where the suspension of matches during the first months of the pandemic saw it drop from £261M the year before to £202M, a loss of £59M. Meanwhile, matchday revenue was down £13M. However, commercial revenue rose by £29M.
Overall, the club’s reported revenues were down £43M for the period, and for a club that has sought to operate in a self-sufficient manner—limiting its spend to what the club brings in rather than Fenway Sports Group paying out of pocket—that was always going to result in similarly sized loss.
That period includes the first three months of the ongoing global crisis that continues to see fans unable to attend matches more than a year later, and there have been whispers that the club’s losses during the pandemic’s subsequent months are likely to be in the £120M region.
It is believed that loss and ongoing operating expenses are being covered by interest free internal loans within FSG’s empire. Those loans would then be paid back once the financial situation improves while helping to keep the club’s £4 billion valuation intact for the owners in the present.