For the first time in 7 years, Liverpool Football Club finds itself looking at a black figure in the profit line, as opposed to a red one. Perhaps the only time seeing red is a bad thing for a Liverpool supporter, mind you. While a modest profit of just £.9m, it shows a huge stride from the previous year’s loss of £49m. Through massive Premier League TV revenue sharing, UCL qualification, and increased match revenue, Liverpool have shown a huge swing in just one year.
Ian Ayre, who has been hammered for his dealings in the transfer window, certainly deserves a large portion of the credit. FSG have had a model since their takeover in 2010, and Ayre has help them execute it over the next 5 years. While there is still a long way to go to make the club healthy and profitable on a consistent basis, the groundwork has been laid and the future looks bright.
Recently, Liverpool signed a new “record deal” for New Balance to be the new kit supplier of the club. A logical move, considering Warrior was owned by New Balance. This deal is reportedly worth up to £300m over 6 years. An incredible figure. But this alone is not enough. Consistent UCL qualification will increase match revenue, TV revenue, as well as global awareness for the club. In short, we must maintain as much success on the pitch as we do off, or we may find ourselves back in red figures before we know it.
Ayre has recently mentioned an increased investment in youth for the club, a strategy that has been apparent since Brendan Rodgers took over. The Liverpool squad that just took down Manchester City had an average age of just 24 years old. While I think an investment in youth is critical, I still think Liverpool will want to maintain at least 1-2 marquee signings per year. Players with proven UCL experience.
It is a good time to be a Liverpool supporter. The club is playing well on the pitch and ownership is moving in the right direction off the pitch. We must continue to strive to be great in all aspects and surely the silverware will return to Liverpool. YNWA.