Liverpool are struggling on the pitch, but zoom out on the graph and, financially, they are healthier than ever.
In terms of prize money, last season’s Premier League title triumph was not worth considerably more than finishing 2nd would have been. Only about £2m, in fact.
However, in terms of the ancillary commercial benefits – sponsorship, retail and so on – winning the league measured on the Richter scale. We won’t know the exact extent of the upswing until Liverpool release their accounts in the spring, but football finance analyst Greg Cordell estimates that total revenue will be up by almost £100m year on year.
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Much of that rise will have come from the return to the Champions League, but £40-50m will also be traced back to the wider commercial strategy overseen by FSG, including partnerships, merchandise sales and matchday income.
John Henry, Mike Gordon and Tom Werner hold the Premier League trophy at Anfield
Photo by Carl Recine/Getty Images
That is why, despite having spent roughly £450m gross and £230m net, Liverpool were not betting the farm on Alexander Isak, Florian Wirtz and Hugo Ekitike being instant successes at Anfield. To date, we still haven’t seen enough from at least two of them, but FSG aren’t in the business of short-termism.
Sunday’s 3-0 defeat at Manchester City was a nadir under Arne Slot, yes, but the owners have got the club into a position wherein they can ride out a bad season financially. In fact, Liverpool – like Manchester United – know that, even if they spend a generation in the wilderness, it won’t be terminal for them as an elite force.
There is time yet to turn this season around, but even if they don’t, the club have the PSR headroom, the financial facilities and the clout to reassess in the summer and challenge again in 2026-27.
“The commercial operation at Liverpool is part of a grander plan combined with the redevelopment of the stadium,” says Liverpool University football finance lecturer Kieran Maguire, speaking exclusively to Rousing The Kop.
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“We’re seeing the stadium increasingly utilised for commercial purposes. We’re seeing that every summer on Merseyside. FSG are super-smart. You can dislike John Henry and the rest of FSG because of their attempt to hijack the domestic game with Project Big Picture and, of course, the European game with the Super League, but from a pure business point of view, what they are doing is always in the best interest of shareholders.
Liverpool v Manchester United - Premier League
Photo by Poppy Townson – MUFC/Manchester United via Getty Images
“So they are largely insulated from a massive drop-off in commercial income regardless of what happens on the pitch. They have done some fantastic sponsorship deals and the new deal with Adidas is very lucrative.”
Liverpool have briefed that the Adidas deal has already broken records. That arrangement is likely to be worth in excess of £90m annually once the basic fee, royalties and other contract terms are calculated.
That means Liverpool will likely be pushing towards the £350m mark in terms of commercial income, up from £308m in 2023-24, the last financial year on record.
When FSG bought the club, annual commercial income was £77m. 10 years ago, it had risen to £116m. For context, Man United’s commercial income at the same time was £268m.
But as United have failed to even keep up with inflation in the last decade, Liverpool have eaten up the ground on their arch enemies. And once the accounts are out next spring, there is every chance they likely will have surpassed United for the second successive year.