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Liverpool's newly renovated Anfield(Image: Jan Kruger - UEFA/UEFA via Getty Images)

While Liverpool’s 2023/24 financial accounts showed a loss of £57million before tax, the overall picture was one of a robust club.

When the accounting period ends in May for 2024/25 the picture will be considerably different.

Liverpool saw record revenues for the 2023/24 period of £614million, with commercial revenue climbing to its highest level at £308million, while the club also broke through the barrier of £100m in matchday revenue for the first time as the redeveloped Anfield and it’s 61,000 capacity helped to deliver £102million in revenue.



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But the need to see revenue climb across key areas has never been more important, especially against the backdrop of a season when the club missed out on the lucrative sums of cash that comes with competing in the UEFA Champions League, something that highlights the relentless requirement for competitive success.

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Among the notes that accompanied the publication of the financial results last week was a note of caution as to just how much some of the hidden administrative costs have increased at the club in recent years.

Administrative costs rose by £38million to £600million for the period, with match day costs having increased by nearly 80% over the past eight years, something forecast to see a 100% increase by 2027.

The reason for these increased costs was highlighted as being due to ‘market driven factors’ and rising inflation that was impacting significant cost lines including wage costs, labour-based contracts, utilities and rates.

In the case of utilities, costs have more than doubled compared to three years ago, while the Retail Price Index (the mechanism used to monitor inflation) was 3% in the reporting period, on top of 11.3% in the previous period.

While these kinds of sums hardly seem something to be overly concerned with, it does point to the flip side of stadium expansion and increased commercial activity, with significant cost increases seen in the delivery of both.

With a bigger stadium comes greater cost through staff and utilities, while there is a significant cost of sales to be factored in when increasing commercial activity, such as investment in physical infrastructure to aid retail.

The club opened new stores during the year.

In total, since 2018, administrative expenses have increased by 88% from £320m to £600m at the football club.

According to figures presented by football finance expert Swiss Ramble, Liverpool’s other expenses shot up £30m (22%) from £137m to £167m, an increase of £67m (68%) in just five years.

Every club has been hit with inflation and increased costs during the same period, but for those who have invested in growing their stadiums and supporting infrastructure, such as Liverpool and Tottenham Hotspur, the costs become even more significant, and that money has to be found.

Liverpool have the third largest cost when it comes to other expenses, with Spurs fractionally higher at just north of £167million, while Manchester City’s sits at £190million.

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When Liverpool’s Main Stand redevelopment was completed and opened to the public in September of 2016, the club’s other expenses sat at £58million, that sum has risen by £109million since.

Liverpool’s return to Champions League football for this season, and at a time when the revamped competition has never been more valuable, allied with competitive success at home and abroad, as well as expected rises in commercial revenue once again, means that those costs won’t be as hard to bear when the 2024/25 results are published.

There is a hidden cost to operating an elite club with a world-class stadium, though, and those costs are only likely to continue heading in one direction.


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