Reds post pre-tax loss of £20m despite record-breaking revenue

Liverpool made a pre-tax loss of £19.8 million last year despite revenue breaking through the £300m mark for the first time.

After two years in the black the club dropped back into the red according to the club’s official accounts, released yesterday.

The loss in the year ending May 2016 was largely due to investment in the first-team squad plus pay-offs to manager Brendan Rodgers and his backroom staff.

Twelve additions were made to the squad, including the likes of £32 million Christian Benteke – no longer at the club having been sold after one season at a £5 million loss – and £29 million Roberto Firmino.

There were also six new contract extensions and some costs associated with the redevelopment of the Main Stand at Anfield.

In the same accounting period the club did, however, sell Raheem Sterling to Manchester City in a £49 million deal.

Press Association Sport understands the club are comfortable with the deficit as, since the last financial year ended, there has been an increase in income as a result of commercial deals and the capacity of hospitality in the new Main Stand has doubled.

The club are expecting to see “significantly improved results” for the current financial year.

Overall revenue, which has grown year on year since Fenway Sports Group took over in 2010, increased to a record £301m, up from £297.9m the previous year when the club posted a £60m profit, thanks in the main by the sale of Luis Suarez to Barcelona for £75m.