FSG set for RECORD Liverpool financial losses | OneFootball

Most of the time, the focus on Liverpool pertains to their ambitions on the football pitch, while the behind-the-scenes running of the club by owners Fenway Sports Group is often forgotten about.

However, neither issue is mutually exclusive from the other, the finances impact sporting output and likewise, if the team has a bad season then the finances are likely to deteriorate.

As such, when Liverpool failed to qualify for the Champions League in the 2022/23 season, there was always likely to be a knock-on effect, which according to the latest report from OffThePitch, has meant that the club recorded record losses for the 2023/24 season.

Liverpool's finances

Overall, the club is operating at a loss of €110.8milion, a figure that has nearly tripled from the €44million reported for the 22/23 season. It would represent the biggest loss in the club's history, surpassing the €104.7million figure from 2011 - the year after FSG bought the club.

And while the overall makeup of such losses pertains to a number of different issues, some very key actions from the club can be put to blame.

On the back of finishing fifth in the 2022/23 campaign, Liverpool played in the Europa League, having missed out on Champions League qualification. In turn, this led to a loss €52.9million in UEFA prize money, as the club is expected to only bring in €27.1million instead of the €80million from the season prior.

The side's extended run in the Europa League and other domestic competitions - notably the Carabao Cup, which they won - created a further five home games (€11.4m), but the team's underperformance in the previous season can be recognised as a step backwards financially.

Extended travel led to a rise in expenses which surged by €16.5m, from €586.7m in 2022/23 to €603.2million, breaking the €600million mark for the first time in the club's history.

© IMAGO - John Henry, Liverpool, FSG

The club's commercial revenue rose by 3%, taking the overall figure to €322.8million - almost half of the forecasted €654.7million, but this figure as a whole will have decreased in turnover by 4% (€28.2million).

And while the initial figures may suggest that Liverpool still brought in more than they spent in expenses, the addition of transfer fees and player amortisation costs presents a much darker picture.

Liverpool's wages are projected to increase, despite the departure of big-earners James Milner and Jordan Henderson from the books, with the current reported figure sitting at €437.4million of the overall €603.2million.

In addition, the club's player amortisation costs are on the rise, with €147.2million allocated for such a cost - which puts Liverpool among last year's top five clubs in such an expense.

The increase can be put down to the arrivals of Alexis Mac Allister, Dominik Szoboszlai, Ryan Gravenberch and Wataru Endo, although the benefits of having them on the pitch for the forthcoming seasons could well help the club see an upturn in its financial figures in next year's reports.

© IMAGO

FSG mismanagement?

Liverpool have long been praised for their cautiousness in transfer windows - although occasionally fan tensions have boiled over.

The lack of Champions League football in 2023/24 was always going to be significant, but the decrease in prize money really shows how pivotal it is to make the top four every season.

The extended travel created further expenses and these have harmed the finances, despite the fact that fans got to go to more home games as a result.

Our wage bill continues to soar, which is problematic for many reasons, not least because of the contract disaster that FSG have brought on themselves regarding Mohamed Salah, Trent Alexander-Arnold and Virgil Van Dijk, who may end up leaving this season.

As per current reports, contract negotiations have stalled for all three players, with no breakthroughs having been made public, and this no doubt will be fuelled by the fact that each of the three talismen are essential assets in the Liverpool senior team, so they are wanting their wages to reflect that.

Salah is already sitting on roughly £350,000 a week. How much higher can that figure go? Will Liverpool's wage costs continue to rise astronomically? And even if fans are okay with that, the owners have to find a way to make it financially viable.

All while amortisation costs are up, which makes Liverpool's plans to invest further into the squad that much harder, despite recent transfer windows which on the face of them, suggest a club that has been relatively reserved already.

The problems seem never-ending, and while Arne Slot continues to focus purely on matters on the pitch, the issues behind the scenes will only continue to have an impact until a more stable financial situation is reached.

How FSG decide to fix it all, we'll have to wait and see.