English Premiership

Liverpool loses £50 million

2012-05-03 13:02

London - Liverpool reported  £50 million ($79.9 million) losses in the last financial year following pay-offs to staff and costs associated with the club's failed new stadium plans, it was revealed on Thursday.

Although new owners the Fenway Sports Group wiped out 200 million in debts when they took over in October 2010, the club was forced to write off 35 million over their moribund HKS-Stanley Park stadium project.

The sacking of manager Roy Hodgson after just six months, also contributed to a further 8.4 million in costs relating to contract terminations, figures lodged with Companies House showed.

Liverpool's managing director Ian Ayre however insisted the club's finances were in good shape, explaining that the results had been distorted by "extraordinary" expenditure.

"I guess people will focus on the loss of £50 million and there's no business - or people running any business - who are going to be pleased with any loss," he told the Liverpool Echo.

"But I think the important indicator here is this 59m charge for exceptional items and as a business that's been in a transition, it's about moving from where we were to where we want to be.

"We have written off a huge amount on the stadium project. A big chunk of that 50m loss relates to the HKS project - which is now defunct - and associated costs around that."

The figures do not include a record kit deal with American company Warrior Sports worth at least 25 million a year.

"If we had not written off these extraordinary costs, we would have been looking at breaking even," Ayre said.

"We have reduced interest charges from 18m to about 3m. That puts us in a much stronger position to utilise our revenues more effectively on the team."

Read more on:    liverpool  |  epl  |  soccer
NEXT ON SPORT24X

 

Read News24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
21 comments
Add your comment
Comment 0 characters remaining
Live Video Streaming
Video Highlights
Sport Talk

Fixtures
19 April 2014
Tottenham Hotspur v Fulham, White Hart Lane 13:45
West Ham United v Crystal Palace, Boleyn Ground 16:00
Cardiff City v Stoke City, Cardiff City Stadium 16:00
Newcastle United v Swansea City, St. James' Park 16:00
Aston Villa v Southampton, Villa Park 16:00
Chelsea v Sunderland, Stamford Bridge 18:30
20 April 2014
Norwich City v Liverpool, Carrow Road 13:00
Hull City v Arsenal, The KC Stadium 15:05
Everton v Manchester United, Goodison Park 17:10
21 April 2014
Manchester City v West Bromwich Albion, Etihad Stadium 21:00
Logs
Team P W PTS
Previous Results

Date Home Team Result Away Team
Vote

Which team do you think will win the English Premiership?

 
 
English Premiership flutter

Take Sport24's "expert" tips at your peril...

Featured Blog

The stock of Bulls and Sharks 2014 Super Rugby jerseys are slowly becoming available after the festive season break, writes blogger Baylion.

Latest blogs
 

Twitter Follow Sport24 on Twitter

Newsletters Sign up for the Morning Glory, Super 15 and Soccer newsletters

Blogs Yes your opinion counts. Get it out there

WIN Enter and win with Sport24!

Mobile Sport24 on your mobile phone - WAP, alerts, downloads, services

BlackBerry Stay in the loop on your BlackBerry

iPhone Latest Sport24 news on your iPhone

Facebook "Like" Sport24's Facebook page

TV schedule Plan your couch time with our searchable sport TV guide

RSS Feeds Sport news delivered really simply.

 
There are new stories on the homepage. Click here to see them.