Liverpool's financial growth continues despite recent competition setbacks

Liverpool Football Club appears to be in a strong financial position, despite recent setbacks on the pitch. The club's finances are being analyzed by Chris Weatherspoon, a new football finance writer at The Athletic. He is examining the economic health of major Premier League clubs, starting with Liverpool. At the beginning of March 2025, Liverpool had a fantastic season under coach Arne Slot, but that changed quickly. The team has recently lost both the Carabao Cup and Champions League, leaving only the Premier League title to fight for. The loss to Paris Saint-Germain affected Liverpool financially, causing them to miss out on significant prize money. Despite these losses, Liverpool's financial outlook remains bright. They are expected to generate record revenue this season, projecting over £700 million, mainly due to increased matchday and commercial income. The club's commercial revenue has seen a remarkable rise, now accounting for more than half of their total income. Liverpool's spending habits vary compared to other top clubs. Their transfer fees are among the lowest among England's top teams, which keeps their player amortization costs stable. However, they have historically been profitable, even with a recent pre-tax loss of £57.1 million — the largest in the club's history. The funds for Liverpool's spending mostly come from their strong cash generation, but recently, they needed a loan from their owners, Fenway Sports Group (FSG), to finance player acquisitions and stadium improvements. FSG has significantly invested in the club since taking over in 2010, helping stabilize its finances after a period of turmoil. Looking ahead, with Liverpool back in the Champions League, they are positioned to return to profitability soon. Their expenses may rise, but the club has room to spend this summer on player contracts and new signings. Overall, Liverpool's management continues to focus on sustainable growth while maintaining a competitive squad.