Liverpool has suffered a significant drop in revenue, according to the annual Deloitte Money League, with the Reds falling from third to seventh in the table.
Liverpool has slipped behind Manchester United after a loss in revenue and a reveal of $755.3m (£593.8m/€694.1m). According to the annual Deloitte Money League Report, Liverpool had the biggest drop among the top 20 clubs in Europe in terms of revenue.
The Reds’ accounts for 2022/23 haven’t been published yet, but they’re expected at the end of February. Liverpool’s revenues for the 2023 financial year fell slightly from $755.9m (£594.3m/€694.6m) in 2022 to $755.3m (£593.8m/€694.1m). This small drop of less than one per cent caused the club to fall from third to seventh place.
Despite this, the drop of four places might not seem too bad. But the poor performance in the Premier League compared to the previous season, when the club finished second, and the exit from the Champions League at the last-16 stage were significantly impactful.
The difference between finishing the 2021/22 season in second place, and the 2022/23 season in fifth, amounted to $8.4m (£6.6m/€7.7m). The club’s performance in the 2021/22 season in Europe, when they were beaten by Real Madrid in the final, earned the club around $134.2m (£105.6m/€123.4m). This was accrued from its flawless group stage that saw the Reds win all six games, a feat that delivered $3.1m (£2.4m/€2.8m) for each success, on top of the guaranteed participation fee of $17.01m (£13.43m/€15.64m).
In 2023, the exit at the last-16 stage and a poorer record than the previous year saw them earn around $104.2m (£82m/€95.8m). Along with an $8.4m (£6.6m/€7.7m) decrease in merit payments from the Premier League due to their competition finish last year, this represents a total drop of $38.4m (£30.2m/€35.3m), or five per cent. Atlético Madrid and West Ham United were the only other clubs in the top 20 to see a decline in revenue year-on-year.
Despite this, Liverpool’s underlying financial performance remains strong. While missing out on Champions League football this year will impact next season’s revenues, the club’s commercial performance has stayed robust. It’s expected to improve from 2022 to 2023 with several big-name companies becoming commercial partners, including an extension of the shirt sponsorship deal with Standard Chartered.
The Money League only considers revenue figures reported in clubs’ annual accounts for the 2022-23 season and doesn’t take into account operating costs. Real Madrid ($919m/£723m) led the top 20, followed by Champions League winners Manchester City ($913m/£718.2m), and Paris Saint-Germain ($886.3m/£697.2m). Barcelona ($884.5m/£695.8m), and Manchester United ($824.3m/£648.5m) completed the top five, with United overtaking Liverpool having posted revenues of $741.3m/£583.2m for the previous financial year.
