Sports Breaking News

The Canadian Press - ONLINE EDITION

Liverpool debt rises to $130 million as team struggles in English Premier League

By: Rob Harris, The Associated Press

Monday, Mar. 4, 2013 at 2:37 PM | Comments: 0

Liverpool's Luis Saurez scores from a free kick against Wigan Athletic during the English Premier League soccer match at the DW Stadium, Wigan, England, Saturday March 2, 2013. Liverpool won the match 0-4. (AP Photo/PA, Clint Hughes) UNITED KINGDOM OUT NO SALES NO ARCHIVE

Liverpool owners have been hit by a set of "painful" financial results that highlight the cost of investing heavily in players who have failed to re-establish the club as a force in England or Europe.

The debt at Liverpool was revealed Monday to have risen by a third to 87.2 million pounds (about $131 million), while losses of 40.5 million pounds (about $61 million) were accrued during the 2011-12 season.

"I take comfort in the fact that the work we have done, some of which costs us a lot of money in this period and beyond, looks pretty painful at the time," managing director Ian Ayre said. "But as long as you invest in it and manage it in the right way, then hopefully it bears fruit as we go forward."

There's little prospect of Liverpool reaping riches from the Champions League next season, however, as the team languishes in seventh place in Premier League, outside of the top four qualification places.

The downbeat financial results demonstrate the minimal impact of having reached two domestic finals last season and ending a six-year title drought by winning the League Cup.

The five-time European champions were strong performers in the Champions League before slumping out of the group stage in 2009.

It was the eighth-place finish last season in a topflight division the club has won 18 times — a haul only surpassed by Manchester United — that bit so hard in the Anfield balance sheets and led to Kenny Dalglish losing his job as manager, replaced by Brendan Rodgers.

The cost of firing Dalglish was included in 9.5 million pounds (about $14 million) of "exceptional payments" during the 10 months to May 31, 2012 covered by these accounts.

Liverpool's losses of 40.5 million pounds in the accounts covering a 10-month period were in line with the losses in the previous full year.

There was only a modest increase in turnover of 5 million pounds (about $7 million) from the 184 million pounds (about $275 million) reported for 2010-11. Man United's revenue by comparison in 2011-12 hit 320 million pounds (about $480 million).

Heavy spending before the 2011-12 season — including more than $50 million on Stewart Downing and Jordan Henderson — wasn't replicated with an upturn in fortunes on the pitch.

Ayre accepts the club must "improve revenues and manage our cost base effectively."

Principal owner John Henry's Fenway Sports Group, which rescued the club from fellow Americans Tom Hicks and George Gillett Jr. in 2010, injected 46.8 million pounds (about $70 million) into the club last season.

Liverpool also said Monday that it is in talks with Standard Chartered bank about extending its shirt sponsorship deal, which is worth about 20 million pounds a season ($30 million) and expires at the end of the 2013-14 campaign.

___

Rob Harris can be reached at http://twitter.com/RobHarris

Rate this
This article has not yet been rated.

We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high. If you thought it was well written, do the same. If it doesn’t meet your standards, mark it accordingly.

You can also register and/or login to the site and join the conversation by leaving a comment.

Rate it yourself by rolling over the stars and clicking when you reach your desired rating. We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high.

Sort by: Newest to Oldest | Oldest to Newest | Most Popular 0 Comments

You can comment on most stories on brandonsun.com. You can also agree or disagree with other comments. All you need to do is register and/or login and you can join the conversation and give your feedback.

There are no comments at the moment. Be the first to post a comment below.

Post Your Comment

The Brandon Sun does not necessarily endorse any of the views posted. Comments are moderated before publication. By submitting your comment, you agree to our Terms and Conditions. New to commenting? Check out our Frequently Asked Questions.