Liverpool post losses of £20m
Thu 5th May 2011 | Money & Finance
Liverpool Football Club have posted losses of £20m for the year ending July 2010.
The end of year accounts, which will be published at Companies House later today and cover the period August 2009 to July 2010 under the ownership of Tom Hicks and George Gillett, show revenues rising to £184m, but net debt increasing to £123m and incurring interest payments of £17m.
Liverpool, were purchased by Fenway Sports Group in October 2010, three months after the period the accounts cover. Managing Director, Ian Ayre was quick to reassure fans that the clubs future was safe.
"As much as we are all aware of the difficult circumstances surrounding these accounts and that period in the Club's history, everyone in the world can now see just how much has since been achieved," Ayre said in a statement on the clubs official website.
"Since the end of the last financial year, Fenway Sports Group has paid off £200m of acquisition debt from the previous owners, dramatically reducing interest payments as a result and meaning we are able to invest more revenue in the team rather than servicing debt.
“We have also enjoyed significant commercial growth since these accounts were finalised, including our shirt sponsorship deal with Standard Chartered, which was the largest partnership contract in the Club's history.
"On and off the pitch since the end of the last financial year, the picture is an improving one as we focus on growing profitability and strengthening the First, Reserve and Academy operations.
"The Club is now in an excellent position to move forward and all of us can approach the future with optimism."
The results show the precarious position the club was in during the later stages of previous owners Tom Hicks and George Gillett.
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