In a statement released on their website, Liverpool have confirmed pre-tax losses of £46 million because of the coronavirus pandemic which forced clubs to play behind closed doors. The Reds aren’t the only ones to announce losses with Manchester United, Juventus and many others doing the same.
The financial effects of the coronavirus pandemic has been well documented by the world with countries, cities and business all losing heavily. However, they haven’t been the only ones with football clubs, too, severely affected. That has seen the likes of Manchester United and Juventus report heavy losses with Barcelona in serious debt.
Now Liverpool have joined them with the Reds reporting £46 million in pre-tax losses for the year that ended last May. That is when the COVID-19 pandemic struck with clubs playing games behind closed doors, and the club also confirmed that their revenue suffered a drop of £43 million to £490 million. Not only that, they reported drops in matchday revenue, media revenue but commercial revenue rose by £29 million to £217 million.
It saw Andy Hughes, the club’s managing director, reveal that the report is up to May 2020 but despite that, it shows the financial impact of the pandemic. Not only that, Hughes further added that the club were in a solid spot before the coronavirus hit and have managed to navigate their costs effectively during a trying and “unprecedented period”.
“This financial reporting period was up to May 2020, so approaching a year ago now. It does, however, begin to demonstrate the initial financial impact of the pandemic and the significant reductions in key revenue streams. We were in a solid financial position prior to the pandemic and since this reporting period we have continued to manage our costs effectively and navigate our way through such an unprecedented period," Hughes told Liverpool's official website.
“Importantly, what has remained constant throughout the pandemic is the club’s desire to support the local community and those who live in and around Anfield and across the city region. We have also worked closely with our city partners and provided unwavering support to the region’s public health departments in their drive to promote the important health messages across the region to help keep local people safe.
#LFC has today filed its consolidated financial accounts for the year to May 31, 2020.— Liverpool FC (@LFC) April 27, 2021