Liverpool's Financial Report broken down:

[THREAD]

Retweets and likes appreciated, anything in here is my interpretation of the report and may not be correct lol.
Revenue:
This is probably the area most people will be interested in, as there's been a bunch of speculation on the effect of COVID when it comes to the club. With both media revenue (TV revenue) and matchday revenue (tickets etc.) down about 20% compared to last year, this is
fairly worrrying for the club. These numbers only capture the effect of the pandemic between March and May, and it's likely there will be an even bigger decline in 20/21 given that there has only been a few games where fans have actually attended but we can expect media revenue
to bounce back given the fact that games are being broadcasted this year. Commercial revenue has grown mainly due to the fact that the club continue to take on new sponsors like Cadbury, as well as continuing their relationships with Carlsberg etc.
Cash:
Cash is probably the most important thing in business, and given the situation in the world atm it would be reasonable to assume the club would become more cash strapped. However, the club actually received net cash of £112m in the year.
This was basically fully made up of a bank loan the club have taken out in the year... FSG increased bank facilities from £50m to £198m in the year, done as part of their refinancing of debt due in Jan 20, due in 2025.
Given it's refinancing of debt, it's likely that this wasn't taken out as a result of the pandemic and also isn't as ominous as you'd think - it's fairly standard practice, however it's interesting to speculate the reason for them increasing their bank facilities
from £50m to £200m, possibly related to the expected costs of the new Anfield Road stand, very doubtful it's there for new signings as we'd all hope... #Mbappe2021
Player contracts:
Listed as 'player registrations', this is essentially the value of the squad given the contract value of each player (worth) and length of the contract remaining. This has shrunk year-on-year, primarily due to a) lack of signings/investments
b) sale of players such as Danny Ings c) lack of big players coming to the end of their contracts being offered extensions e.g. Wijnaldum. Important to note this doesn't include any of the 2020 signings (Thiago, Jota) although they do mention this in the end of the report.
They mention a net amount due in relation to the summer 2020 transfers in of approx. £50m, which implies they only actually laid out cash of £25m in summer 2020 (as per transfermarkt). Another indication of an Edwards masterclass, getting players in installments.
In that same note they mention a profit of £38.5m in relation to player sales, assuming most of which is made up of the fee Sheffield United paid for Brewster, lol.
Transfer owings:
The accounts also detail the amounts owed to/by the club relating to transfers - with the club only receiving approx. net £8m in relation to money owed to them for players like Coutinho, whilst paying out approx. £90m in cash relating to previous buys
If I had to guess I'd say these relate to Alisson/Van Dijk /Keita etc, any of the big money signings in the recent years. Implies we're still waiting on about £50m of Coutinho money whilst also still owing about £80m of money for VVD/Alisson etc.
Overall:
Despite the club announcing a loss after tax of £40m, it doesn't completely imply that the club will also report a loss in 20/21. Given they made profits on players in summer 20, as well as the fact that there will be more broadcast revenue from
more games being broadcasted (end of 19/20 and all of 20/21), we'll likely see the club recover slightly in 20/21. The fact that the club has also increased the cash balance implies that there may be some further investment (hopefully in the squad but prob in the stadium)
means I wouldn't be surprised if they offer some big money contract extensions or dip into the transfer market, given that loan is due in 2025... don't forget they will also likely recognise the cash prize from winning the league in 20/21.
In short, although it looks bleak, the club is in a decent position and there isn't any big uncertainty over them being able to operate at the highest level. Officials using covid as an excuse isn't really relevant given the liquidity of the club. That's all, folks!!
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