Liverpool Post £21.8m Increase in Net Debt
Mon 4th Mar 2013 | Money & Finance
Liverpool’s net debt has increased to £87.2m according to their latest financial results for the 10-month period from 1 August 2011 to 31 May 2012.
During this period, the club’s net debt increased by £21.8m, attributed mainly to player instalment payments and investment in new players. Exceptional payments of just over £9.5m were made relating to a number of costs including stadium project costs, general restructuring costs and costs relating to some senior employees that left the club.
Speaking of the results on LiverpoolFC.com, Managing Director Ian Ayre said: "These financial results are now up to 18 months old and show that we have made some good progress towards putting the financial health of the club on a firmer footing.
“Although we didn't play in a European competition, we had great success in both domestic competitions which gave a boost to our revenue. In addition, areas like our commercial partnerships continued to grow, despite a global recession."
Since the period end, Liverpool’s owners, Fenway Sports Group (FSG) injected £46.8million into the club via a non-interest bearing intercompany loan whilst credit facilities were also refinanced with three major banks, providing £120million of facilities for three years.
Despite not playing in Europe, turnover increased during the equivalent 12-month period due to an increase in domestic fixtures.
Ayre added: "For the equivalent 12 month period, the club's unaudited turnover has increased by £5million and we were delighted to further strengthen our portfolio of commercial partnerships as we continued to focus on growing successfully at home and internationally.
"Off the pitch, we forged new partnerships with Warrior, Garuda and Chevrolet - the revenue from these contracts will show in the 2013-14 financial accounts; however, these partnerships continue to demonstrate the strength and reach of the LFC brand.
"We have further strengthened the team with new appointments including Mike Cox, director of merchandising, Billy Hogan, chief commercial officer, and Matthew Baxter, chief media officer - all three bring a depth and wealth of relevant global business experience which will further fuel our desire to grow internationally in key markets.
"We continue to invest in our digital platforms and more recently established 10 new international Twitter feeds in local languages to further engage our global fan base. LFC is now the most active football club on Twitter throughout the world."
Earlier this year, Deloitte's Football Money League table yet again placed LFC in the top 10 European football clubs based on revenue. Liverpool was the only club in the top 10 that was not in the Champions League competition for that season, demonstrating the strength and reach of Liverpool as a global brand that remains highly attractive to fans and commercial partners alike.
Ayre added: "These financial results show that we are continuing to improve revenues while managing our cost base and day-to-day operations more effectively and are testament to the hard work and dedication of the board, senior management team and staff right across the club.
“Any business transition takes time and dedication and we will all remain focused on building a solid and sustainable operating business model which we can build on and further strengthen what we started with Fenway Sports Group over two years ago."
Posted by: Aaron Gourley
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