LFC Accounts 2012-13 Season

Good to know that debt on our books is down and revenue is growing.
But this says nothing about net profit, so we do not know if the club is profitable.

LFC announces financial results

3rd Mar 2014

Liverpool Football Club today announced that solid progress continues to be made as it filed its financial results for the year to May 31, 2013.

Revenue increased by nine per cent to £206.1million and external debt decreased by 29 per cent to £45.1million.

Since Fenway Sports Group (FSG) completed its takeover of Liverpool FC in October 2010, revenue has steadily increased year on year and external debt has decreased overall by nearly £200million. During this reporting period, FSG injected £46.8million to fully repay a historic stadium loan facility.

Managing director Ian Ayre said: "These results demonstrate that the financial health of the club continues to make good progress as we continue our journey to transform the club on and off the pitch.

"Over the past four or five years, revenue has been consistently increasing from around £170million in 2009 to over £200million today, and external debt has decreased significantly to less than £50million.

"With a hugely supportive ownership group, we have taken a measured approach to bring back financial stability to this great club by ensuring it is properly structured on and off the pitch.

"During the period, we signed six new players including Daniel Sturridge, Philippe Coutinho and Joe Allen, and we extended seven players' contracts which included Daniel Agger, Martin Skrtel, Martin Kelly, Lucas Leiva and Raheem Sterling - adding depth and strength to the squad while continuing to develop young talent. In addition, nine players were transferred out and eight players were loaned out."

Despite the club dropping three places to 12th in Deloitte's Football Money League, Liverpool remains the highest ranked club that is not in the Champions League. Its commercial revenue now accounts for 47 per cent of the total revenue, which is bettered by only the Money League's top six.

Ayre added: "These financial results are now up to 18 months old and we have continued to make further progress since this reporting period. Our strong links remain with our existing partners, signing new deals with Standard Chartered, Garuda and Carlsberg, and we have recently announced five new partnerships which endorses the global appeal of the LFC brand.

"We continue to invest in our digital and TV platforms and recently announced nine new television partnerships, allowing millions of fans across the world to watch Liverpool games and receive exclusive content.

"We have also seen good progress being made regarding a proposed stadium expansion at Anfield. Any final decision continues to be based on certainty; however, since the partnership was established between Liverpool City Council, Your Housing Group and LFC only 16 months ago, we regard the progress as extremely positive.

"Given where Liverpool Football Club was only a few years ago, the progress that has been made since FSG acquired the club has brought back much-needed stability with an ambitious vision which everyone is focused on.

"I'd like to thank everyone involved in running the club - our owners, fans, partners, players and staff - for all the hard work and dedication."

http://www.liverpoolfc.com/news/latest-news/156514-lfc-announces-financial-results

Good to know that debt on our books is down and revenue is growing.
But this says nothing about net profit, so we do not know if the club is profitable.

We made a loss of nearly £50m so no profits.

We made a loss of nearly £50m so no profits.

I see that our operating loss is £32m on revenue of £206m and operating expenses of £215m. We should be breaking even assuming we make the CL. Imagine we have £20m more in CL revenue. That would do.

CL will enhance matchday and broadcast revenue.
The Garuda kit sponsorship numbers should kick in next year as well.

I see that our operating loss is £32m on revenue of £206m and operating expenses of £215m. We should be breaking even assuming we make the CL. Imagine we have £20m more in CL revenue. That would do.

CL will enhance matchday and broadcast revenue.
The Garuda kit sponsorship numbers should kick in next year as well.

Yeah we'll have an extra £30 odd million tv revenue and additional prize money for finishing higher up the league to go on next years accounts (2013/14 season).  CL money will go on the following years accounts.

So we exceeded the Financial Fair Play rules. First time in years we'll probably get into the Champions League. Would be a disaster if we'll get banned from european football.

Lot of smoke and mirrors.  The biggest loss seemed to be in the club altering the 'values' of players.

Accountants sitting down, valuing footballers for the purpose of the clubs assets, is likely to be something that will be a major sticking point for financial fair play.

As people have said, the next set of accounts will likely see a huge increase in media revenue (think it was at least £35M this season wasn't it), and probably a marginal increase in matchday revenue after the club increased prices last summer.

Our costs still look massive though.  With such a young squad - and such a thin squad - I cannot fathom why our expenses are so ginormous.

Lot of smoke and mirrors.  The biggest loss seemed to be in the club altering the 'values' of players.

Accountants sitting down, valuing footballers for the purpose of the clubs assets, is likely to be something that will be a major sticking point for financial fair play.

As people have said, the next set of accounts will likely see a huge increase in media revenue (think it was at least £35M this season wasn't it), and probably a marginal increase in matchday revenue after the club increased prices last summer.

Our costs still look massive though.  With such a young squad - and such a thin squad - I cannot fathom why our expenses are so ginormous.

I can't remember but it would be worth looking at which players left in the timeframe the accounts are for.

KPMG are masters at smoke and mirrors.

How the F**k have admin costs gone up 30 million?

Trouble with football finances are that they are so far behind.

For next season we can now expect additional revenue of:-

£16m Garuda deal
£30m CL money
£35m extra TV revenue.

So the £50mln paper loss will be a £21mln profit anyway if all else stands the same.

I can't remember but it would be worth looking at which players left in the timeframe the accounts are for.

KPMG are masters at smoke and mirrors.

Lot of amortization going on by the looks of it Swab.

Lot of amortization going on by the looks of it Swab.

Maybe the figures were bloated for the sale and now they are being returned to a more reasonable level?

Lot of amortization going on by the looks of it Swab.

More like depletion , sucking the life out of us .Vampires.

Lot of amortization going on by the looks of it Swab.

That's always the case though isn't it?

Mind you, if KPMG are doing the amortization, then they probably have Suarez valued at £7.50 and a bottle of white lightning.

I hesitate to call them crooked fuckers, but if there's a loophole or a way of being a bit creative to gain an advantage, they'll find it.

Considering Amortisation is basically dividing a players transfer fee by his contract length, can't see how much smoke and mirrors can be done there.

I think we are going to have a much bigger squad next season, that may increase the wage bill.

Considering Amortisation is basically dividing a players transfer fee by his contract length

Think it's transfer fee+wages isn't it?

I think some of the player 'losses' are down to selling players at less than the value we had placed on them.

To be fair the amount of transfer ins and outs covered in these accounts (1 Jun 12 to 31 May 13) is sizeable. 

We brought in a good half dozen youngsters on long contracts, for some decent sized fees (hence a massive increase in amortisation).

Whereas we sold even more players, on bigger bucks, but they only had tiny amounts of contract left, we sold them for nothing or next to nothing, so probably took a hit on player values.

Next years accounts will look a lot tidier than this - a huge amount tidier.  I'd be amazed, and worried, if we're not either turning a small profit, or within 5-10M of doing so.

just when the on field activities have finally become news worthy we have to start talking about f***in number crunchers.

Think it's transfer fee+wages isn't it?

Just transfer fee John, the wages come under the wage budget, Amortisation is just basically placing a value on a players 1st initial transfer fee as an asset on the books, it then gets written down over the course of their contract, I.e a £20m player 1 year into a 4 year contract his fee would be amortised to £15m.

Players such as Gerrard who came through the youth system is not subject to amortisation and neither are players like Agger who has already been here longer than the length of his first official contract with us.

Now - my take is that we are paying for the 'Parry Bowl' still and the new planning which has made us cite a loss above FFP levels... In which case that wont count as infrastructure is not included...

Lets be honest, NESV are not stupid enough to release numbers that would put us in breach of FFP - especially if we are able to qualify. Also, if we are in breach what the hell will happen with almost every other club in the country / Europe!

Via: @SwissRamble

Via: @SwissRamble

Don't mean to be thick or anything..... but er, is this good? I see some encouraging numbers, but I might be missing something.

Don't mean to be thick or anything..... but er, is this good? I see some encouraging numbers, but I might be missing something.

The commercial is good. No doubt that will look better next season.
As will the TV rights.

Most interesting is the wage bill seems to have flat lined,
whereas our rivals is rocketing with the exception of Chelsea.

It's also stating what we already knew:
We took a big hit on players' valuations.