As was mentioned in the Athletic yesterday, Liverpool's new deal with Adidas (that officially launches 1st August) is worth more than the £60m figure that has been bandied around- significantly more. In fact, it will earn the club over £120m. The club was already making around £60m from kit sales back in 2018 (as admitted to by Billy Hogan during the Liverpool vs. New Balance trial in 2019). Since then, the club's kit sales have skyrocketed and outperform every Premier League club by a distance.

Liverpool's 'summer of madness' is delighting its fans in equal proportion to upsetting rival supporters. Once the Ekitike deal is concluded, transfer fee outlay will hit £260m- with further expensive incomings expected. This thread explains how the club is financing it. The first thing to note is that the club is not benefiting from owner investment through issue of new shares, sale of assets to themselves or dubious inflation of sponsorship deals involving related parties. This is being achieved through an evolving self-sustaining model.

Liverpool Football Club released its accounts for the 2023/24 season last week. Despite the absence of Champions League football, the club generated a record £614m in revenue, but still finished the season with a pre-tax loss of £57m. The turnover of £614m was comprised of:
£308m commercial revenue
£204m broadcast revenue
£102m matchday revenue

This was the fourth highest in the Premier League, behind Man City (£715m), Man United (£662m) and Arsenal (£616m).

The Deloitte Football Money League has been published, and for the first time, some of Liverpool Football Club's key figures for the 2023/24 season have been revealed. The major talking point will relate to the wage bill- which saw an INCREASE when it was expected to drop notably In 23/24, the club finished in eighth place overall- but the results reveal that turnover actually increased when compared to 22/23 (revenue was expected to have dropped with no Champions League football that season).

Another transfer window arrives and the usual daily debates on Liverpool Football Club's owners begin to emerge. Now half way into the window, there are little signs of a January incoming. Will the ownership deserve some criticism if the squad isn't strengthened? Absolutely. For the record, I think a lot of what FSG do as owners is good, sound and sensible. As further reforms and court cases pan out, FSG's direction where financial stewardship is concerned is likely to be vindicated, in my view.

Given multiple reports stating that Zubimendi said yes to Liverpool, only to then change his mind, it looks like the club wasted precious time trying to negotiate a payment structure for the transfer fee- and this allowed the player to get cold feet and ultimately change his mind Liverpool had the option of quickly aiding the player to trigger his buyout clause (apologies- it appears I was misinformed and there would have been no tax liability for the £51m)- but chose instead to try and negotiate a fee instead.

So I spoke last week with someone involved in Spanish football. He told me that though buyout clauses are part of all contracts in Spanish and Portuguese football (as it's part of employment law), in reality, buyout clauses are very rarely exercised. The reason for this is because Spain's tax authorities can treat any funds transferred by Liverpool to Zubi (even if for a few hours) as income, and this would then be liable to 47% tax charge- so £51.5m could increase to £75.7m.

One of Jurgen Klopp's numerous legacies is his significant part in helping Liverpool to be restored as a financial footballing juggernaut. The image below shows the impact he has had (comparing key metrics from the season before he joined us with estimates for the current season) The club is on track to break through the £300m mark for commercial revenue next season (which would make it the second Premier League club to legitimately achieve that feat)- and that's thanks to Klopp's role in making Liverpool one of the most marketable brands in football.

Liverpool Football Club's accounts for the 2022/23 season were finally published on Friday, and they provided some interesting insight into the club's financial standing. I share here some of the highlights. Turnover amounted to £593.8m in a season where the club finished fifth in the PL and made it only to the first knockout round of the CL. The turnover was comprised of (change on 21/22 in brackets):
Commercial: £272.5m (+£25.8m)
Broadcast: £241.6m (-£19.2m)
Matchday: £79.8m (-£7m)

The Deloitte Football Money League for the 2022/23 season has been published, which reveals that Liverpool's turnover remained almost exactly the same- despite a far less successful season on the pitch (turnover was £594m for both seasons). The club dropped from third in the previous season's ranking to seventh. Topping the list was Real Madrid- their income grew to £723m, driven largely by a significant increase in commercial revenue. In 21/22, their revenue was only £10m higher than Liverpool's.

Today's announcement that Liberty Equity is investing into Liverpool Football Club is positive news, but not something to get overly excited about. It's reported that the investment will allow most/all of the club's bank debt to be cleared. As of 31 May 2022, this stood at £159.4m- a figure that had likely reduced by £10m or more during 2022/23.

Following on from great analysis by @slbsn of CFC's finances and how it all relates to the PL's Profitability & Sustainability Rules (PSR), any punishment relating to losses relative to the PSR Calculation in excess of £105m would be implemented THIS season.

https://twitter.com/slbsn/status/1690075269971755009

In the latest set of rules, the PL has set out clear timelines for dealing with breaches of PSR- and the latest the process can continue to would be 6 June.

Liverpool are strongly linked with RB Leipzig midfield dynamo, Dominik Szoboszlai.

Reports have suggested the player's contract contains a release clause worth £60m that can only be activated if paid in full.

Paying such a fee up-front would be beyond LFC, surely? Not really. Welcome to the world of football receivables finance. In very simple terms, this means that a funder would pay the transfer fee to a selling club and then a buying club would repay the funder through future instalments.

Liverpool's deal with Nike enters its penultimate season, which means the club are to commence negotiations during 23/24 with the sportswear giant on potentially extending the deal.

Below is a thread setting out its importance to the club, and what factors will influence talks. The deal was entered into from the start of the 20/21 Premier League campaign, following a court case with former kit manufacturing partner, New Balance, where NB tried unsuccessfully to argue that it had matched Nike's offer and should therefore continue as LFC's partner.

Despite the loss of Champions League football next season, Liverpool's turnover should still remain very healthy and not far off the level club will achieve for 22/23. Revenue levels this season are likely to be in the region of £580m (slightly below last season's record £594m). Next season, I estimate that the club's turnover will be marginally lower, at approximately £570m.

FSG had several parties ready to make very big offers in recent months but nobody was willing to go up to £4.5bn+ (which is what would be enough for JWH to part ways with Liverpool). It was Mr. Henry that made the ultimate - not unanimous - call not to entertain any offers. He chose for FSG to remain as custodians of Liverpool not because he feels the club's fortunes will be stronger with his group at the helm; rather, it's purely a money call. JWH would rather wait, feeling that the club's value will continue to appreciate.

There is increasing chatter that FSG will be soon be selling a minority stake in Liverpool Football Club. Countless performances this season have shown that a sizeable overhaul of the first team squad is needed. Will FSG use proceeds from the sale to swell the transfer kitty? The hope and expectation will be that FSG do make most or all of the funds generated from the sale to boost the club's finances. In terms of how much FSG might generate, it will depend on how much of a stake they sell.

The Deloitte Football Money League has, for the first time, revealed some of Liverpool Football Club's key financial information for the 2021/22 season. Though the information made available is limited, it still throws up some interesting insight. Here, I share my analysis... Firstly, the turnover generated by Liverpool is a record-high for the club (£594m). Turnover is worked out through three key revenue streams:
broadcast (£266m)
commercial (£233m)
matchday (£95m).
It doesn't factor in revenue from player sales (more on that later).

2023 is shaping up to be one of the most pivotal years in the history of Liverpool Football Club. Decisions that need to be made will alter the course of its history for a long time to come. Key amongst them is a choice FSG need to make- stay or go. For me, it's obvious- go. Some will disagree with this, but they have done some wonderful things for Liverpool. Made inspired recruitment decisions (e.g. Klopp, Edwards). Modernised Anfield. Upgraded training facilities. Improved management structures within the club. Grown key revenue streams.

IF Liverpool were to sign Jude Bellingham and Enzo Fernández at a combined cost of £200m or more, financing the deals would be feasible. Signing both would not require the full amounts to be paid at once to Dortmund and Benfica respectively. Fernández has a reported release clause of €120m (£103m). This isn't necessarily the same as a buyout clause where a specified figure has to be paid in full 'by the player' (though really by the purchasing club)- there can be scope for negotiation of the fee structure.

If and when FSG sell Liverpool Football Club, their prime motivation (beyond securing a maximum return on their investment) should be to leave the club in a position where it is financially able to compete with other clubs in a way they simply can't right now. This is a point Jurgen Klopp acknowledged before the PL game versus Man City a few weeks ago. Selling to owners who can make the club more financially competitive is, whether people like it or not, the only way to remain at the top of the table.