Premier League clubs are wary of overspending and breaching PSR regulations, Liverpool posted their financial results for 2022/23 last week.
Liverpool are comfortably within the Premier League’s Profit and Sustainability regulations after posting their financial results for the 2022/23 season.
The Reds recorded a £9million pre-tax loss for the previous 12 months but saw their commercial revenue reach record highs after rising £25m to £272m after a drop in media revenue of £19m and matchday revenue (£7m year-on year). Jurgen Klopp’s side are enjoying a fine season in the Premier League as they sit top of the table, in the Europa League and FA Cup quarter-final with a Carabao Cup honour already wrapped up.
After a season away from the elite European competition, Liverpool are set to return to the Champions League in the first campaign guided by a new manager after Klopp announced his shock departure in January. Their failure to qualify for the tournament last season and the exit to Real Madrid in the last-16 sparked the revenue fall to £242m – compiled with the decrease in matchday revenue due to fewer games being played at Anfield.
Liverpool have had continued commercial growth with kit manufacturer Nike, as well as deals with Standard Chartered – main kit sponsors – and sleeve partners Expedia. The arrival of Darwin Nunez, Cody Gakpo and Calvin Ramsay plus 12 new contract extensions saw the clubs wage bill increase from £366m to £373m.
Under Klopp, the Reds have never been free-spending and with a view to next year, the figures will be different following the departures of Jordan Henderson, Fabinho and Roberto Firmino, as well as the summer arrivals including £60m-rated Dominik Szoboszlai after his release clause was triggered.
Premier League clubs have been made to sweat over their finances in recent months, in light of the top-flight governing body coming sanctioning on the alleged rulebreakers, as evidenced in the recent January transfer window. Everton were deducted 10 points which was reduced to six upon appeal, while the Blues await the verdict of their latest breach with Nottingham Forest, who were both charged in February.
Newcastle United have been forced to temper their spending amid the risk of exceeding the PSR threshold of £105m in losses over three years. Liverpool have highlighted that administrative expensive at the club have significant increased from £320m to £562m with annual operating costs up 40 percent at Anfield, while staff costs increased by 79 percent from 2018.
The Reds are clear of major PSR concerns but many top-flight clubs are flying close to the margins for error that could see them cross the threshold and find themselves in front of the Premier League and an independent commission facing charges.
