Liverpool’s Remarkable Financial Turnaround Continues
Liverpool are on the verge of signing a kit deal with Nike estimated to be worth in excess of £70m a year. The club had to battle current suppliers New Balance in court to clear the path for the new partnership but can now get to work on finalising the contract.
Return from the brink
That the club are now in a position to command such an eye-watering figure is remarkable in itself. Despite being one of England’s most decorated teams they were on the verge of going bankrupt just nine years ago. Back in 2010, they were involved in another court battle which saw current owners FSG (headed by John W. Henry) take over the club from Tom Hicks and George Gillet.
Success on and off-field
FSG happily admit they made some mistakes on the football side early on – most notably hiring Damien Comolli as Director of Football – but they soon got to grips with boosting the commercial side of the club. That off-field success is now being matched by the results on-field thanks to the appointment of enigmatic German boss Jurgen Klopp and a new-look recruitment team. Back in May, the club were crowned European champions and are now well on their way to regaining their status as a powerhouse of world football.
Since FSG arrived, Anfield has benefitted from a new Main Stand and with further stadium development on the horizon that growth looks set to continue. The club posted record pre-tax profits of £125m last year and are currently sitting on top of the Premier League and are favourites in the football betting odds to lift the crown. Ending their 30-year wait for a domestic league title would be the icing on the cake of what has been a remarkable resurgence.
The contrast between the former and present owners highlights just how vulnerable football teams can be in the wrong hands. While the previous group leveraged the club into a financially precarious position that caused the banks to step in, the current owners have yet to take any money out of the club and have increased its value to around £1.7 billion according to Forbes. That’s more than double what the club was valued in their first year of ownership. The next year could see Liverpool overtake the likes of Chelsea and Arsenal and rise to sixth in football’s global rich list.