“Lots And Lots Of Money.” – Dave Powell On Liverpool’s Financial Situation Ahead Of Big Summer | OneFootball

By Joe Durrans

Liverpool have started a new era under Arne Slot and to partner that they have announced a return deal as they will be partnering up with Adidas once again starting next season Dan spoke to Dave Powell to get the low down on Liverpool’s financial situation.

The deal is the most expensive kit deal the Reds have ever had, Dave said “It never really felt like a really comfortable fit for Liverpool with Nike, the kits didn’t always land particularly well, and it didn’t really feel like it was a brand that went hand in hand with Liverpool. But commercially it did really well for them because they were given 20% add-ons from brand and merchandise, and they had a flat £30-35 million per year from fees.”

“I think that Adidas are more in line with what Liverpool wants to do, I think there is of course the link to the past which brings that sense of nostalgia, and we could expect them to lean on that quite heavily.”

“I think what has happened with the accounts is something that you could have predicted quite accurately. It is almost stripping out the attributed revenue of Champions League reputation which accounts for so much of it. The biggest loss was in the broadcast revenue which comes down to the lack of Champions League participation.”

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“It was also the first time that they ticked over into the £100 million match day revenue and that is down to the completion of the expansion to the Anfield Road end which is impactful. It is now Arsenal, Liverpool Man United and Spurs that are the four clubs that have crossed over into that £100 million bracket.”

“I expect that Liverpool will start to see a plateau in matchday revenue since there are limited things that you can do at Anfield, I expect the growth we will see for Liverpool around infrastructure will be surrounding ancillary developments, it may be hotels or music venues or things like that in the future.”

“Commercial revenue has gone on a big incline, and I think that is linked with how Liverpool are always going to be a globally recognised brand in the way that they leverage success on the pitch very well. They have a high retention rate of sponsorship; they don’t operate with too many opaque firms. You could have a look at some other teams’ sponsorships across the league and there are some questionable firms. Liverpool have found their niche of being able to appeal to blue chip brands because I think they have been able to offer something that not every other club does, they have a very, very strong foundation and they have the link to the women’s team. When I spoke to one of the important commercial directors at Liverpool, they explained to me that sponsors now want more than just exposure on the front of shirts or LED screens around the pitch, they want something impactful which will give them a return on their investment and satisfy the community element of what they need.”

Will Liverpool be in the market for a new left-back?

“Liverpool, if you look at profit and loss probably have around £150 million to lose before having to be concerned by PSR, so Liverpool won’t be losing that in a year therefore their headroom is closer to around £200 million. But in reality, they are not spending all of that. It’s also not the case that the £200 million actually allows them to go and spend £200 million because if you went on a £300 million splurge over the summer the amortised cost over 5 years which is around £60M a year to add which means that they actually have the room to spend lots and lots of money should they wish. They also operate a way in the market that means that they do not overpay they study the players and how much they are willing to pay based on how impactful they may be.”

“Everything hinges on what happens with Mo Salah, Van Dijk and Trent Alexander-Arnold this summer, it appears that they are going to have to sign a full-back this summer which Milos Kerkez has been mentioned but if you are signing from the Premier League, you will be paying a premium which they will of course consider. Also, if you are looking to replace the output of a player like Salah you are looking at least at a £100M player and before you know it you are getting up towards that £200M figure. So, it depends on how much they think they can get out of Salah and Van Dijk over the next three years.”