Liverpool's dismissal of Kenny Dalglish as manager cost the club nearly £10m, new accounts reveal.
They paid £9.6m in termination payments in the 10 months to June last year. The club also lost a total of £40.5m in that period and net debt rose by £22m to £87m.
However, despite a wage bill that equates to £131m over a full year, the managing director, Ian Ayre, claimed the figures represent a transitional period and "a new transfer strategy" is in place.
He said: "This shows in players like Jose Enrique and Sebastian Coates. We will continue to invest in players and have a better structure in deals with them."