Liverpool keen to rein in wage bill after £12m rise

 

Liverpool's owners admit transfer fees and salaries need handling with care after the club's latest accounts revealed a near-£12million rise in the wage bill.

Fenway Sports Group have bankrolled substantial investment in the playing staff since January last year, although that has been heavily supplemented by the £50million sale of Fernando Torres to Chelsea.

The departure of the Spain international, as one of the club's highest earners, will have lightened the burden on the wage bill, but there remains work to be done with contributions still being made to the likes of Joe Cole's reported six-figure weekly salary while he is on loan at Lille.

And there appears a determination to keep a tight rein on the spending on players, both transfer fees and wages, while "remaining as competitive as possible".

In the club's accounts, officially published today, the club identifies that area - among others - as being key in terms of 'principal risks and uncertainties'.

The figure for salaries of all staff rose to £120.3m.

"Player transfer market and wage costs are those that need the most care, and the aim is to manage these costs within financial constraints whilst remaining as competitive as possible," said the directors' report submitted as part of the accounts.

The club posted a £49.4m pre-tax loss, as well documented yesterday, compared to £19.9 for the year ending July 2010.

That was mainly as a result of £35m being written off on the doomed stadium project of former owners Tom Hicks and George Gillett.

But the loss of Champions League football and changing managers twice have cost Liverpool more than £30million in less than two years.

The Reds' absence from Europe's elite club competition saw media revenue drop by £14.3m and matchday revenue fall by £2m in the year ending July 31 2011.

Roy Hodgson's departure, and that of associated staff, in January 2011 cost the club £8.3m.

That followed six months after Rafael Benitez left, having failed to finish in the top four, at a cost of £7.7m (money which was included in the 2010 accounts).

Liverpool did not play in the Champions League this season and will not do next, although they will compete in the Europa League again.

By comparison, tomorrow's FA Cup final opponents Chelsea will receive about £46m for reaching this year's Champions League final.

Overall turnover dropped by £900,000 to £183.6m but commercially it was up by £15m.

Net debt decreased from £123.4m in July 2010 (under Hicks and Gillett) to £65.4 in July 2011 and as a result interest payments dropped by £14.6m.

A £30.2m interest-free loan was provided by FSG, who last September refinanced credit facilities with RBS, Bank of America and Barclays to provide £120million for three years - £45m for the stadium project and £75m for general purposes.

PA

Have you tried new the Independent Digital Edition apps?
Caption competition
Caption competition
  • Get to the point
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

Not even the 'putrid throat' could stop the Ross Poldark swoon-fest'

Not even the 'putrid throat' could stop the Ross Poldark swoon-fest'

How a costume drama became a Sunday night staple
Miliband promises no stamp duty for first-time buyers as he pushes Tories on housing

Miliband promises no stamp duty for first-time buyers

Labour leader pushes Tories on housing
Aviation history is littered with grand failures - from the the Bristol Brabazon to Concorde - but what went wrong with the SuperJumbo?

Aviation history is littered with grand failures

But what went wrong with the SuperJumbo?
Fear of Putin, Islamists and immigration is giving rise to a new generation of Soviet-style 'iron curtains' right across Europe

Fortress Europe?

Fear of Putin, Islamists and immigration is giving rise to a new generation of 'iron curtains'
Never mind what you're wearing, it's what you're reclining on

Never mind what you're wearing

It's what you're reclining on that matters
General Election 2015: Chuka Umunna on the benefits of immigration, humility – and his leader Ed Miliband

Chuka Umunna: A virus of racism runs through Ukip

The shadow business secretary on the benefits of immigration, humility – and his leader Ed Miliband
Yemen crisis: This exotic war will soon become Europe's problem

Yemen's exotic war will soon affect Europe

Terrorism and boatloads of desperate migrants will be the outcome of the Saudi air campaign, says Patrick Cockburn
Marginal Streets project aims to document voters in the run-up to the General Election

Marginal Streets project documents voters

Independent photographers Joseph Fox and Orlando Gili are uploading two portraits of constituents to their website for each day of the campaign
Game of Thrones: Visit the real-life kingdom of Westeros to see where violent history ends and telly tourism begins

The real-life kingdom of Westeros

Is there something a little uncomfortable about Game of Thrones shooting in Northern Ireland?
How to survive a social-media mauling, by the tough women of Twitter

How to survive a Twitter mauling

Mary Beard, Caroline Criado-Perez, Louise Mensch, Bunny La Roche and Courtney Barrasford reveal how to trounce the trolls
Gallipoli centenary: At dawn, the young remember the young who perished in one of the First World War's bloodiest battles

At dawn, the young remember the young

A century ago, soldiers of the Empire – many no more than boys – spilt on to Gallipoli’s beaches. On this 100th Anzac Day, there are personal, poetic tributes to their sacrifice
Dissent is slowly building against the billions spent on presidential campaigns – even among politicians themselves

Follow the money as never before

Dissent is slowly building against the billions spent on presidential campaigns – even among politicians themselves, reports Rupert Cornwell
Samuel West interview: The actor and director on austerity, unionisation, and not mentioning his famous parents

Samuel West interview

The actor and director on austerity, unionisation, and not mentioning his famous parents
General Election 2015: Imagine if the leading political parties were fashion labels

Imagine if the leading political parties were fashion labels

Fashion editor, Alexander Fury, on what the leaders' appearances tell us about them
Phumzile Mlambo-Ngcuka: Home can be the unsafest place for women

Phumzile Mlambo-Ngcuka: Home can be the unsafest place for women

The architect of the HeForShe movement and head of UN Women on the world's failure to combat domestic violence