Ian Ayre confident about Liverpool financial figures

The Reds' debt has risen by £21.8million to £87.2million

Liverpool managing director Ian Ayre is confident the robustness of the club's commercial operation will help them overcome any shortfalls from a lack of European football.

The Reds' debt rose by £21.8million to £87.2million in the 10 months between August 1 2011 to May 31 2012 - a restructured accounting period designed to bring alignment with the football season.

However, the loss of £40.5million was less than the £49.3million made the previous year and done against the backdrop of no Europa League action, although Liverpool did get to two cup finals, winning one.

With Brendan Rodgers' side currently seventh in the Barclays Premier League and European football far from a certainty next season, Ayre is convinced off-field performance - turnover rose by £5million - will help bridge any gap.

"It's good to see that even in a year where we have a downturn in fortunes by not playing European football, we can bolster our revenues by performing in other areas," he said.

"It shows that we have a very strong and growing business that sits behind the football club.

"And as we approach things like Financial Fair Play and that type of environment, that puts us in a very strong position."

The figures do not include the record £25million-a-season six-year sponsorship deal with kit manufacturers Warrior, which came into effect last summer and could net the club a similar amount through associated merchandising.

"We've had record sales of their products throughout this year," Ayre told liverpoolfc.com.

"We've also seen new sponsors come on board, notably Chevrolet and Garuda Airlines.

"If you have got a successfully performing team and you have got an infrastructure which we now have and the business ability to deliver revenue, then both of them coming together would be a fantastic solution for the football club all round."

Some of the deficit was as a result of investing heavily in the transfer market - and the costs associated with bringing in the likes of Stewart Downing (£20million) and Jordan Henderson (£16million) in the weeks preceding the accounting period - while offloading other players at a loss.

But with the club's owners Fenway Sports Group firmly focused on the impending arrival of Financial Fair Play, Ayre stressed there was necessary work to be undertaken.

"The key message for me is that we are continuing to transition to the point we have been working on for several years under this ownership - which is to continue to improve revenues and manage our cost base effectively," he said.

"The biggest cost base without doubt is player trading and player wages - but these accounts demonstrate that we are still working hard to improve that.

"I take comfort in the fact that the work we have done, some of which costs us a lot of money in this period and beyond, looks pretty painful at the time.

"But as long as you invest in it and manage it in the right way, then hopefully it bears fruit as we go forward and gives us a better platform to exist on in a different environment and in a world where we are expected to break even.

"You never take comfort from any business that makes a loss but I am pleased that we're making the progress we are making."

A settlement for former boss Kenny Dalglish, sacked in May, was included in £9.5million of "exceptional payments" but Press Association Sport understands the severance package for assistant Steve Clarke and compensation to Swansea for Rodgers will be included in the next set of figures.

PA

Life and Style
love + sex A new study has revealed the average size - but does that leave men outside the 'normal' range being thought of as 'abnormal'?
Arts and Entertainment
TV
Voices
The Palace of Westminster is falling down, according to John Bercow
voices..says Matthew Norman
Sport
Steve Bruce and Gus Poyet clash
football
Have you tried new the Independent Digital Edition apps?
News
Graham Norton said Irish broadcaster RTE’s decision to settle was ‘moronic’
TV
Arts and Entertainment
Jake and Dinos Chapman were motivated by revenge to make 'Bring me the Head of Franco Toselli! '
arts + ents Shapero Modern Gallery to show explicit Chapman Brothers film
Arts and Entertainment
Kurt Cobain performing for 'MTV Unplugged' in New York, shortly before his death
music Brett Morgen's 'Cobain: Montage of Heck' debunks many of the myths
Life and Style
life
Sport
Brendan Rodgers
football The Liverpool manager will be the first option after Pep Guardiola
News
Amazon misled consumers about subscription fees, the ASA has ruled
news
Arts and Entertainment
Myanna Buring, Julian Rhind-Tutt and Russell Tovey in 'Banished'
TV Jimmy McGovern tackles 18th-century crime and punishment
Arts and Entertainment
Paul Whitehouse as Herbert
arts + ents
Caption competition
Caption competition
Latest stories from i100
Have you tried new the Independent Digital Edition apps?

Bleacher Report

Daily Quiz
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

Day In a Page

Syrian conflict is the world's first 'climate change war', say scientists, but it won't be the last one

Climate change key in Syrian conflict

And it will trigger more war in future
How I outwitted the Gestapo

How I outwitted the Gestapo

My life as a Jew in wartime Berlin
The nation's favourite animal revealed

The nation's favourite animal revealed

Women like cuddly creatures whilst men like creepy-crawlies
Is this the way to get young people to vote?

Getting young people to vote

From #VOTESELFISH to Bite the Ballot
Poldark star Heida Reed: 'I don't think a single bodice gets ripped'

Poldark star Heida Reed

'I don't think a single bodice gets ripped'
The difference between America and Israel? There isn’t one

The difference between America and Israel? There isn’t one

Netanyahu knows he can get away with anything in America, says Robert Fisk
Families clubbing together to build their own affordable accommodation

Do It Yourself approach to securing a new house

Community land trusts marking a new trend for taking the initiative away from developers
Head of WWF UK: We didn’t send Cameron to the Arctic to see green ideas freeze

David Nussbaum: We didn’t send Cameron to the Arctic to see green ideas freeze

The head of WWF UK remains sanguine despite the Government’s failure to live up to its pledges on the environment
Author Kazuo Ishiguro on being inspired by shoot-outs and samurai

Author Kazuo Ishiguro on being inspired by shoot-outs and samurai

Set in a mythologised 5th-century Britain, ‘The Buried Giant’ is a strange beast
With money, corruption and drugs, this monk fears Buddhism in Thailand is a ‘poisoned fruit’

Money, corruption and drugs

The monk who fears Buddhism in Thailand is a ‘poisoned fruit’
America's first slavery museum established at Django Unchained plantation - 150 years after slavery outlawed

150 years after it was outlawed...

... America's first slavery museum is established in Louisiana
Kelly Clarkson: How I snubbed Simon Cowell and become a Grammy-winning superstar

Kelly Clarkson: How I snubbed Simon Cowell and become a Grammy-winning superstar

The first 'American Idol' winner on how she manages to remain her own woman – Jane Austen fascination and all
Tony Oursler on exploring our uneasy relationship with technology with his new show

You won't believe your eyes

Tony Oursler's new show explores our uneasy relationship with technology. He's one of a growing number of artists with that preoccupation
Ian Herbert: Peter Moores must go. He should never have been brought back to fail again

Moores must go. He should never have been brought back to fail again

The England coach leaves players to find solutions - which makes you wonder where he adds value, says Ian Herbert
War with Isis: Fears that the looming battle for Mosul will unleash 'a million refugees'

The battle for Mosul will unleash 'a million refugees'

Aid agencies prepare for vast exodus following planned Iraqi offensive against the Isis-held city, reports Patrick Cockburn