Topic: Liverpool Financial Overview

[the_red_pill]

Just highlights the rancour of Hicks and Gillet.  They knew they were sitting on a goldmine but didn't have the money to develop it themselves.  That's why they shit a brick when FSG came along and were demanding stupid money.  They wanted money based solely for our potential future earnings, like some kind of fucking finders fee.

And that - AFTER they ran us into the ground by stripping anything of value first- including players, manager, dividing fans, dragging our reputation through the mud, dividing the boardroom, lowering standards etc. The f*cking balls on them..! Like true narcissists, they definitely still think they've been "swindled" and that gives me some consolation that they will forever be bitter about it.

Proper Cancers - eating away at the good bits first!
Still makes my blood boil thinking about those two blithering, no-mark, selfish c**ts!

[Red Beret]

Proper Cancers - eating away at the good bits first!
Still makes my blood boil thinking about those two blithering, no-mark, selfish c**ts!

Pretty much.

"We want a billion quid for LFC because we know that's what it will be worth in 10 years' time if somebody actually invests in it."

One of the few bright spots of the crash in 2008 was exposing these two fuck nuggets.  Gawd knows how much they might otherwise have borrowed and loaded onto the club otherwise.

[Dave D]

The 'Rest of the World' market has been spoken about for decades as something we should be easily able to tap into.

Has anyone explained our drop off in turnover over the past year? Is our deal with New Balance really holding us back that much?

[RedSince86]

[Trendisnotdestiny]

If there was ever a blueprint for how to reconstruct an organization (with all the various areas needing well-financed continuity and collaboration without overspending), it has to be 2009 to 2019.

Think of all things that had to happen to get us from bottom to top? 

This thought (and these events) makes me feel proud to be a reds supporter because it could have gone in so many other directions with so much less joy).

At times, we can be an impatient lot (speaking of mostly myself), but eternally grateful for watching this project blossom, FSG! Well done.

[RooiBefok]

LFC Profit & Loss Account as at 31 May 2018

[RooiBefok]

LFC Cash Flow Account as at 31 May 2018

[RooiBefok]

LFC Debt as at 31 May 2018

[RooiBefok]

LFC Financial Notations as at 31 May 2018

[RooiBefok]

LFC Use Of Funds as at 31 May 2018

[Triad]

Jeez,we got a lot of dosh for Phil.

[Uncle Ronnie]

FSG have been hit and miss in terms of finances. If you were to look for the common denominator in terms of our increasing income over the last decade then one name would stand head and shoulders above all others; Klopp.

[Suareznumber7]

FSG have been hit and miss in terms of finances. If you were to look for the common denominator in terms of our increasing income over the last decade then one name would stand head and shoulders above all others; Klopp.

Our turnover went from 183.6 to 455.1.  It has steadily increased year on year.  How has that been hit and miss?

[Chakan]

FSG have been hit and miss in terms of finances. If you were to look for the common denominator in terms of our increasing income over the last decade then one name would stand head and shoulders above all others; Klopp.

Can you expand on that?

[Uncle Ronnie]

I’m just getting in before AL, lads.

I can see why he does it now, what a power trip!

[Chakan]

I’m just getting in before AL, lads.

I can see why he does it now, what a power trip!

I almost put AL at the end of my post

[Peabee]

The 'Rest of the World' market has been spoken about for decades as something we should be easily able to tap into.

Has anyone explained our drop off in turnover over the past year? Is our deal with New Balance really holding us back that much?

Drop? It’s reportedly £450m. Our highest ever.

[TepidT2O]

Turnover has risen 50% in the last two years....

[Dave D]

Drop? It’s reportedly £450m. Our highest ever.

I'm talking about turnover for the Rest of the World market.

UK market: £440.8m
EU market: £6.5m
Rest of the World market: £7.7m which is down from £11.7m

[Peabee]

I'm talking about turnover for the Rest of the World market.

UK market: £440.8m
EU market: £6.5m
Rest of the World market: £7.7m which is down from £11.7m

Yeah, that’s strange.

[Peabee]

If you treat player trading separately, ie. amortisation and profits from sales, then the club made c.£90m profits, which is the highest we’ve ever seen.

The club is in a really healthy position financially.

[AmanShah21]

LFC Debt as at 31 May 2018

Wow! Hicks and Gilette really planned to bankrupt us, didn't they? That 280 million bank debt on our holding company could have been the end of us. Can't believe its not even 10 years ago where we were at. Now we have a bigger stadium, 55 million in bank owed debts and a cracking team on the pitch, in a little over 8 years. Still baffles me how we've managed to come so far so quickly. We've got to be the best run big club in the world when it comes to financial prudence at the minute.

[CraigDS]

Given we’ve been with NB a while now the drop in ROTW revenue is unlikely to be down to them.

Could be down to a change in how things are being accounted for maybe.

Oh and exchange rates may be partly responsible too.

[Peabee]

Given we’ve been with NB a while now the drop in ROTW revenue is unlikely to be down to them.

Could be down to a change in how things are being accounted for maybe.

Oh and exchange rates may be partly responsible too.

I think I know why. Our preseason tour included the Asia cup then Audi cup (in Germany) in the summer of 2017, so that income would have included  EU revenue, whereas in the prior season we were in the US.

[El Lobo]

Has anybody seen Al and CatcherintheRye in the same room together?  🤔

I fucking hope not, could you imagine? Your brain would explode instantly

[Dave D]

We're moving in the right direction which is the main thing.

With the UK market on it's own responsible for nearly 97% of our turnover. Are we too reliant on the UK market? Does anybody know the figures for other teams?

There's not much we can do about it now, we're certainly not the only club that has been unable to tap into the global market. The UK market is about to jump off a cliff, it would be nice knowing every other premier league club is in the same boat. Financially doped clubs are obviously immune.

[So… Howard Philips]

Has anybody seen Al and CatcherintheRye in the same room together?  🤔

Or the Esk? !!!!!

[Eeyore]

Wow! Hicks and Gilette really planned to bankrupt us, didn't they? That 280 million bank debt on our holding company could have been the end of us. Can't believe its not even 10 years ago where we were at. Now we have a bigger stadium, 55 million in bank owed debts and a cracking team on the pitch, in a little over 8 years. Still baffles me how we've managed to come so far so quickly. We've got to be the best run big club in the world when it comes to financial prudence at the minute.

The moment we were sold the debt was effectively wiped out. FSG didn't pay for the Club and then had to pay off debt. When FSG bought us we were the Club with the 7th biggest income in World Football. We are now the Club with the err 7th biggest biggest income in World Football.

As for financial prudence, really ?

Prior to Klopp we pissed away money for fun. We squandered the Suarez money on the likes of Balotelli, Lambert, Markovic et al. We then sold Sterling for a kings ransom and blew £32.5m on Benteke.

To put things in to context in the 2010 Deloite Money League United earned 327m euros, Liverpool 237m euros and Spurs 132m euros. United have doubled their income over that period, we have double our income and Spurs have trebled theirs.

An earlier poster mentioned our income going up 50% over the last two years well that is not down to two main things the huge hike in the premier league TV rights and the money we earned from the Champions League. The first one the TV deal happened to every team in the League the second one shows the value of qualifying for the Champions League.

To put that in to context prior to the arrival of FSG we played in the CL in 02, 03, 05, 06, 07, 08, 09 and 2010. Since they arrived we have only played in 15, 18 and 19.

The massive sea-change in our fortunes wasn't the arrival of FSG but the arrival of Klopp. We are nailed on to qualify for the CL this season which will mean in a decade under FSG 3 of our 4 seasons in the CL will have occurred under Klopp. 

[CraigDS]

We're moving in the right direction which is the main thing.

With the UK market on it's own responsible for nearly 97% of our turnover. Are we too reliant on the UK market? Does anybody know the figures for other teams?

There's not much we can do about it now, we're certainly not the only club that has been unable to tap into the global market. The UK market is about to jump off a cliff, it would be nice knowing every other premier league club is in the same boat. Financially doped clubs are obviously immune.

I’m sure we make money from outside the UK which isn’t accounted for within those figures, I imagine those are for direct foreign sales of goods, etc.

[Eeyore]

We're moving in the right direction which is the main thing.

With the UK market on it's own responsible for nearly 97% of our turnover. Are we too reliant on the UK market? Does anybody know the figures for other teams?

There's not much we can do about it now, we're certainly not the only club that has been unable to tap into the global market. The UK market is about to jump off a cliff, it would be nice knowing every other premier league club is in the same boat. Financially doped clubs are obviously immune.

It is an accounting anomaly. For instance the Premier League TV deal comes from a pot of £8.4bn. That consists of £5.1bn from the domestic TV deal and £3.3bn from the International TV deal. Those TV deals are not separated in to their constituent parts in the accounts.

[Peabee]

It is an accounting anomaly. For instance the Premier League TV deal comes from a pot of £8.4bn. That consists of £5.1bn from the domestic TV deal and £3.3bn from the International TV deal. Those TV deals are not separated in to their constituent parts in the accounts.

The overseas income belongs to the PL who have a deal with each of the clubs, so it’s UK revenue for the club. It’s not an anomaly. If we negotiated our own TV deals, it’d be different.

[Eeyore]

The overseas income belongs to the PL who have a deal with each of the clubs, so it’s UK revenue for the club. It’s not an anomaly. If we negotiated our own TV deals, it’d be different.

We negotiate our own kit deal with an American company for shirts that are sold worldwide. That does not come under International revenue though. The point I was trying to make was that the way the accounts are presented does not indicate whether we are taking advantage of our International following.

[penwhen]

We negotiate our own kit deal with an American company for shirts that are sold worldwide. That does not come under International revenue though. The point I was trying to make was that the way the accounts are presented does not indicate whether we are taking advantage of our International following.

I would say that's probably correct. When Liverpool was with Adidas, I could walk into an Adidas store in a mall in the US and find a few Liverpool jerseys (top one or two selling players) and some other Liverpool clothing (hoodies, t-shirts). New Balance stores in the US do not stock Liverpool merchandise.

[CraigDS]

I’d be surprised if that’s not part of the renegotiation with NB. They’ll be wanting our gear in their stores across the world.

[the_red_pill]

LFC Profit & Loss Account as at 31 May 2018

Wow- 100% increase in matchday revenue from 10/11 till 17/18!

[CraigDS]

Wow- 100% increase in matchday revenue from 10/11 till 17/18!

New Main plus quite a few extra games (high profile games too) in the CL compared to only getting to the R16 in Europa in 10/11.

[Red Beret]

I fucking hope not, could you imagine? Your brain would explode instantly

To listen to either of them talk you'd think we were about to go under!

[roots99]

LFC Use Of Funds as at 31 May 2018

What's up with the increase in capital expenditure? I thought after the completion of the main stand it would drop a bit yet it has gone up 31% to £180m. The shop, the reworking of the disabled seating and the training ground must be factored in, but that's quite an increase.

[Eeyore]

What's up with the increase in capital expenditure? I thought after the completion of the main stand it would drop a bit yet it has gone up 31% to £180m. The shop, the reworking of the disabled seating and the training ground must be factored in, but that's quite an increase.

The Main stand was built as a shell and then fitted out in stages. It made sense firstly from the point of view of getting as many bums on seats but it also made sense in terms of FFP. Capital expenditure on Stadiums is exempt from FFP calculations. If that expenditure happens within one accounting year then it affects that period and then has a knock on effect within the FFP period.

If you are not close to hitting the FFP limits then it makes perfect sense to roll over Capital expenditure which allows you further leeway in future accounting periods.

[TepidT2O]

What's up with the increase in capital expenditure? I thought after the completion of the main stand it would drop a bit yet it has gone up 31% to £180m. The shop, the reworking of the disabled seating and the training ground must be factored in, but that's quite an increase.

Paying for the start of the new training ground?  Would depend when that started and went into the books.