Reports: Liverpool set for significant monetary loss ahead of official financial statement release

Liverpool, the defending Premier League champions, are yet to publish their official financial statement for the 2019-20 season but are expected to do so in the coming days. However, recent reports claim that the Reds are set to endure a drop in operating profits worth as much as 8% (£42 million).

As several other clubs have already published their financial data, KPMG conducted a study to look into the financial situation of Europe's top clubs after a tumultuous pandemic-hit season.

Expectedly, most clubs have suffered losses over the course of the season due to various factors such as the absence of fans (leading to minimal match-day revenue), reduced broadcast revenue, etc.

KPMG's study looked into the financial statements of the domestic champions from each of Europe's top 6 leagues - Liverpool (Premier League champions), Juventus (Serie A champions), Bayern Munich (Bundesliga champions), Real Madrid (LaLiga champions), Paris Saint-Germain (Ligue 1 champions) and Porto (Primeira Liga champions).

Since Liverpool are yet to publish their financial data, it is believed that KPMG acquired the data directly from the club's management.

According to reports from Liverpool Echo, the aforementioned study has reportedly shown an 8% dip in operating profit for Liverpool in the 2019-20 season. This equates to a sum of €47.6 million (£42.1m) from their total profit tally of €557 million (£502m) made up of various income streams such as broadcast revenue, matchday revenue, commercial revenue, etc.

However, Liverpool's loss is understood to be moderate compared to that of the other clubs.

While Porto reportedly lost the most with a staggering 50% drop in operating profits, PSG and Juventus have recorded drops of 15% and 13% in their respective profits.

Addressing the matter, KPMG's Global Head of Sport said:

"While recent pre-COVID-19 seasons demonstrated constant and stable growth for almost all the champions of Europe’s top leagues, the past season has been distressing for all, albeit to various extents."

He added:

"The coronavirus crisis has questioned the financial sustainability of the football ecosystem as a whole and further exposed its fragility."

Liverpool hit most by reduced broadcast revenue

At Liverpool, like at Porto, the biggest contributor towards the loss in profits was reduced broadcast revenue, owing to their UEFA Champions League performance.

With Liverpool failing to go beyond the last-16 stage after their loss to Atletico Madrid, limited progress in the Champions League saw reduced broadcast revenue from the competition.

Meanwhile, at Real Madrid, Paris Saint-Germain, Bayern Munich and Juventus, loss of matchday income is what largely contributed to their respective financial losses.