LFC Finances
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Great read. Thanks for sharing.
It's mostly great, but he's dropped some real clangers in there as well. The balances at the end of 2020 are not representative of a typical year. What this means is that his conclusions on FSG policy, based on the total movements over 10 years, are very different to what they would have been if he'd looked at the same thing a year or two before. 2019 and 2020 were anomalous years due to some big one-offs (Coutinho payments, training ground spend, negligible transfer spending in 2019-20, drawing down all our bank debt facility at year end 2020 for the first time ever).
For example, from this, he concludes that we don't pay transfers by instalments. This is quite obviously wrong. We paid out cash of £89m (net) on transfers in 2019-20, when our net transfers for the year (ignoring instalment impact) were £nil. Schoolboy error. The £89m we paid out was instalments on deals from the previous 2 years, proving that we buy/sell on an instalment basis.
For example, from this, he concludes that we don't pay transfers by instalments. This is quite obviously wrong. We paid out cash of £89m (net) on transfers in 2019-20, when our net transfers for the year (ignoring instalment impact) were £nil. Schoolboy error. The £89m we paid out was instalments on deals from the previous 2 years, proving that we buy/sell on an instalment basis.
pitchforks up or down? anyone?
Swiss Ramble's conclusion, which I agree with, is that we're being cautious financially but taking a footballing risk by not investing. Don't think that is news to anyone, but he's argued it in detail with lots of tables and graphs, which is nice (or not, depending on your viewpoint).
I'd say "as you were", with the pitchforks.
thanks, pitchforks at half mast then
So is Real Madrid flush with cash?
keep it on and go to the etihad
hehe
I doubt it. They had net debt of €62m in their last accounts (2020) - cash of €143m and bank debt of €205m and it won't have got any better with covid and a relatively poor year on the pitch.
You do need to stop worrying about Madrid, though.
So we have money but we're just not ready to spend it yet?
Show me the money
We've obviously spent a decent whack on social influencers like Swiss Ramble to write their apologist drivel.
Most likely we don't have the money.
Or, we do have some money, but we're spending it on the Annie Road instead (this is what I think is happening, although as I discussed with Woland on another thread, it would make sense to borrow for the ground expansion as it guarantees cash that can be used to repay the debt).
But we're not showing any signs that we'll go into debt to spend on transfers, as some other clubs are doing (mostly the ones who are getting the "debt" from their owners).
And that last bit is where Swiss Ramble says there's a risk. On the one hand, you could end up going all Leeds United and no-one wants that. On the other hand, you could risk losing your position at the top table by allowing your squad to weaken. FSG/LFC's decision has been taken on the grounds of financial prudence, and in covid-world, that makes sense.
The other thing Swiss Ramble talks about (where I think he is wrong / naive) is using some of the cash from the Red Bird investment. He is assuming (some of) that money could flow down to LFC when it'll probably be used to sustain dividends to FSG's partners or to prop up their rounders team.
We've mainly sold many of the fringe players which is what we wanted. I think Klopp is happy none of the best 11 have gone (yet), other than Gini.
I think the big scandal in all these revelations from @Beamrider has exposed, is the amount we pay agents. These transfer renewals were not just an increase in player salaries it was a huge outlay on Agent cost.
Personally speaking Beamrider, you should reach out to an influencer or the mainstream press, and have a segment/article going through a few club finances
I think anyone interested in the accounts has got a good handle on most of this anyway. I can't help myself getting involved in the financial debate but I preferred it when I was a naive little kid and had no idea.
I remember all the adults kicking off in the pub when dalglish was made player manager and was on 70k per year, it seemed like such a disgusting amount of money to factory workers and dockers who were earning five times less. Look now. Even shite footy players earn a hundred times what factory workers do. Dalglish was the best on the planet and running the team. It's all so fucking nuts.
I remember all the adults kicking off in the pub when dalglish was made player manager and was on 70k per year, it seemed like such a disgusting amount of money to factory workers and dockers who were earning five times less. Look now. Even shite footy players earn a hundred times what factory workers do. Dalglish was the best on the planet and running the team. It's all so fucking nuts.
Problem being that we're not really good at getting rid.
Looks like international rights have been impacted by the pandemic.
https://www.liverpoolecho.co.uk/spo...liverpool-new-financial-reality-deal-21523978
https://www.liverpoolecho.co.uk/spo...liverpool-new-financial-reality-deal-21523978
Like every single sensible cunt said so.
Aren’t big media companies just using covid in some ways to just cut costs and generally take the piss out of existing contracted deals?
Tencent’s revenue most recent quarter is up 20 % against the same quarter last year.
Tencent just brought a UK owned game company from Sheffielf for $1.2 billion and they don’t even make games I would say are anything special and boring shite. Tencent have plent of money, hope PL at least signed a temp 1 yr deal rather than typical 3-4yr ones because some are just plain taking the piss.
I went into Morrisons for a quick shop and paid £39 for 6 food essentials,before covid and Brexit, the whole thing probably is 15 quid. Tencent, Sky and the like can fck off if they wanna carry on paying less while rest of us pay more...
Tencent’s revenue most recent quarter is up 20 % against the same quarter last year.
Tencent just brought a UK owned game company from Sheffielf for $1.2 billion and they don’t even make games I would say are anything special and boring shite. Tencent have plent of money, hope PL at least signed a temp 1 yr deal rather than typical 3-4yr ones because some are just plain taking the piss.
I went into Morrisons for a quick shop and paid £39 for 6 food essentials,before covid and Brexit, the whole thing probably is 15 quid. Tencent, Sky and the like can fck off if they wanna carry on paying less while rest of us pay more...
I’d imagine the trick is to sign commercial agreements with companies that have prospered during COVID rather than ones that haven’t - or at least ones that are looking to reclaim some £££’s now things are opening up more.
We need our pharmaceutical, tv streaming, alcohol delivery, home DIY & home baking partners.
Imagine being sponsored by an airline at a time like this...
Oh wait...
We need our pharmaceutical, tv streaming, alcohol delivery, home DIY & home baking partners.
Imagine being sponsored by an airline at a time like this...
Oh wait...
[article]Manchester United have largely silenced the outcry by recruiting Raphaël Varane, Jadon Sancho and now Cristiano Ronaldo. Sky Sports pundit Jamie Redknapp cut to the heart of the matter recently, asking Gary Neville what he thought of the signings and pointedly adding: “I mean, you and your mates wanted to burn the stadium down last year with the Glazers!”
Chelsea spent £97.5 million on Romelu Lukaku to embellish a squad that won the Champions League six weeks after supporters took to the streets around Stamford Bridge to protest against their involvement in the Super League. Manchester City spent £100 million on Jack Grealish. Arsenal, now bottom of the table, have different problems to those caused by the Super League and Tottenham have found welcome distractions in fending off City’s interest in Harry Kane and topping the table under new manager Nuno Espírito Santo.
However, the ripple effects continue to be felt at Anfield. The European Super League may be dead but a financial super league continues to emerge, dominated essentially by Paris Saint-Germain and City. Manchester United’s commercial income allows them to be a member and though Chelsea have skilfully balanced the books, offloading academy graduates to fund incoming signings, they still have the deep pockets of owner Roman Abramovich in which to rummage around.
Liverpool sit in a tier below. There has been no extravagant transfer spending with the outlay of £36 million on Ibrahima Konaté, signalling a determination to wait in order to bolster the backline with the right player, rather than a player, regardless of the pain injuries to defenders caused in the interim.
The priority has fallen on contract renewals, hugely expensive in their own right. It is indisputable that Liverpool have added quality in Diogo Jota and Thiago Alcântara [£61 million combined], and potential in Konaté, to the squad which won the title in imperious fashion in 2020.
Salah could become the Premier League’s highest-paid player with a new contract
However, whether that is enough fuels an ongoing debate. FSG’s model of self-sustainability, and adherence to seemingly defunct Financial Fair Play rules, has brought Liverpool huge success in recent seasons with the Champions League triumph before the Premier League.
Yet as Swiss Ramble, the excellent football finance analyst, outlined this week, it is a model that has come under strain. Revenue growth has been swallowed by higher costs, including wages that have grown £197 million since 2011. They are now the second highest in the top flight at £326 million behind Man City, £351 million. It has also been calculated Liverpool could have lost around £152 million over the past two, Covid-disrupted seasons.
Such financial hits do nothing to lessen the expectation that always swirls among supporters. The demand is that they must compete and, in the main, they have done just that thanks to Klopp and clever recruitment. Still, the concern they could be left behind was, clearly, at the heart of FSG’s attraction to the Super League in the first place.
Further to the €200 million - €300 million ‘welcome bonus’ outlined in the proposals, there was the prospect of new income streams to plunder. Tap into those and FSG would continue to back the people working on the ground each day to outsmart their rivals, although sporting director Michael Edwards’s contract is due to expire at the end of this season and Klopp’s in 2024.
Outrage to the plan among supporters was unequivocal. Liverpool had won everything by being the best team, doing so with sporting integrity. Now FSG was prepared to sign up to a proposal which removed that basic principle.
Something must now change, however, if calls for increased investment in the team, or the belief Mohamed Salah should be handed whatever size contract he craves during talks on his extension, are to be answered.
Liverpool’s finances suggest there is not too much room for flexibility, but FSG should be considering how they maintain the club’s standing even if none of the immediate solutions appear particularly palatable.
Taking on debt is one way, they could choose to indulge in a financial arms race they are unlikely to win when pitted against state-owned clubs and then there is selling up, although there is no suggestion of that.
Klopp and his players led the way out of that dead end, but for FSG a crossroads now looms.[/article]
I am guessing if they spend in Jan, it will be from the cash flow that followed on from the start of the season.
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