I don’t claim to be a financial expert, so any greater insights into Deloitte’s Football Money League would be appreciated but stats from the 2009/10 season show that Liverpool could be dropping down the financial rankings in the next couple of years without Champions League football. As shown by the pie chart below, 43% of Liverpool’s revenues come from broadcasting rights. Last campaign, despite dropping out of the group stages of the Champions League, the Reds actually saw an increase of broadcasting revenues by £4.9m (7%) from £74.6m (€87.6m) to £79.5m (€97.2m). According to Deloitte this was due to uplift in UEFA’s distribution of TV rights and due to Liverpool’s run to the Europa League semi final with an additional £3 million as a parachute into the second tier European competition. This season and perhaps next will see a dramatic reduction of TV revenues due to the loss of Champions League meaning teams such as Spurs (12th in last season’s Money League) may overtake Liverpool in regards to being the fourth wealthiest English club.

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The hope will of course be that the Reds can compensate for this loss of broadcasting money by increasing its commercial revenues. Even last season, when the recession was biting hard though, the Reds had a drop of revenue of £5.6m, from £67.7m (€79.5m) to £62.0m (€75.9m), compared to the previous season. This is of course expected during the economic downturn but if the Reds are to really start competing with the likes of Manchester United and Real Madrid in terms of finances, they really need to up their game in this area. The sponsorship deal with Standard Chartered bank will certainly help matters as the £20m a year deal is a £12m yearly increase on the previous one with Carlsberg. Commercial Revenues of £62million is still dwarfed by the £123.5million taken in commercial revenues by Real Madrid last year and Manchester United’s £81.4million.

The third and final section, assessed by Deloitte is Match Day revenues. This is probably the most contested point considering the debate over whether Liverpool actually need a new stadium. In 2008/09 campaign, Liverpool’s match day revenue went up a staggering 23% but no such increase was apparent last season as there was a 2% drop of £0.4m to £42.9m. Looking at the top three in the world Real Madrid (£105.7m), Manchester United (£100.2m) and Arsenal (£93.9m), you can see the massive gulf between us and the top teams in the Football Money League. Although our commercial revenues are superior to teams like Arsenal, Chelsea, Tottenham and Manchester City, we are falling way behind on Match Day revenues.

Continue Reading on Page 2 . . .

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