When it comes to finances, United are way out in front

 

When last season Kenny Dalglish said that kit deals were now as important to Liverpool as victories, it seemed ridiculous for someone brought up on the Anfield mantra of "first is first, second is nowhere". In fact, Dalglish was merely echoing the thoughts of the men who now own the club.

Viewed from the narrow piece of history that is Anfield, Old Trafford, with its array of executive boxes which help Manchester United to bring in £2.2 million more than Liverpool at every home game, must seem like the Death Star.

Whatever the result of this afternoon's encounter, the question is whether the battle for the long term between these clubs has already been decided?

We asked the football finance expert, Kieron O'Connor, whose blog "The Swiss Ramble" is now required reading, to analyse these figures to determine if, financially, there is a way back for Liverpool.

Total revenue: 2010-11

Liverpool £184m

Manchester United £331m

Liverpool's revenue was significantly behind Manchester United's in 2010-11, the last season where every club published accounts. Last week United announced their 2011-12 results with revenue 3 per cent down at £320m, largely due to their earlier elimination from the Champions' League, but it still dwarfs Liverpool.

If we look at the three main revenue streams, we can see how difficult it would be for Liverpool to regain parity:

Match Days

Liverpool £41m

Manchester United £111m (2010-11)

United's 2011-12 match-day revenues decreased to £99m, mainly as a result of four fewer home games compared with last season, when they also received a share of the gate receipts from the Champions' League final and FA Cup semi-final.

Nevertheless, this is still more than double Liverpool's match-day revenue, which could only be addressed by Fenway Sports Group building a new stadium or renovating Anfield. Naming rights might also help bridge the gap.

Broadcasting

Liverpool £65m

Manchester United £117m (2010-11)

United's 2011-12 broadcasting revenues fell to £104m, mainly due to the elimination at the group stages of the Champions' League.

Qualifying for Europe's flagship tournament makes a huge difference, because the central distributions for the Premier League are fairly equitable. In 2011-12 United received £60m after finishing second; Liverpool received £54m for coming eighth. In 2010-11, when they reached the Champions League final against Barcelona, United received £47m in TV distributions alone. The Europa League will only make a small difference to Liverpool's finances.

Commercial

Liverpool £77m

Manchester United £103m (2010-11)

Liverpool have done well here, increasing commercial income by 25 per cent in 2010-11, largely due to their shirt sponsorship rising from £12.5m with Carlsberg to £20m with Standard Chartered, and they have the £25m Warrior kit-supplier deal on the way, more than twice the amount received from adidas. United's 2011-12 income climbed 14 per cent to £118m, largely thanks to new secondary sponsors, including the amazing £10m DHL training-kit agreement. They switched main shirt sponsor from AIG to Aon in 2010-11, raising the annual value from £14m to £20m, but have announced a deal with Chevrolet, which will rise to an astonishing £45m in 2014-15. In addition the sponsor will pay them £11m in each of the previous two seasons, while Aon are still the sponsors.

Kit supplier Nike paid about £26m last year (plus a 50 per cent share of profits from the club's merchandising, licensing and retail operations). It is said they will go for an annual rise of at least £10m.

PROMOTED VIDEO
Have you tried new the Independent Digital Edition apps?
Sport
Two christmas trees ,Moonbeam (2L), Moonchester (2R) and Santa Claus outside the Etihad Stadium
footballAll the action from today's games
News
Sarah Silverman (middle) with sister Reform Rabbi Susan Silverman (right) and sister actress Laura Silverman (left) at Jerusalem's Western Wall for feminist Hanuka candle-lighting ceremony
peopleControversial comedian stages pro-equality Hanukkah lighting during a protest at Jerusalem's Wailing Wall
Arts and Entertainment
The Bach Choir has been crowned the inaugural winner of Sky Arts’ show The Great Culture Quiz
arts + ents140-year-old choir declared winner of Sky Arts' 'The Great Culture Quiz'
Life and Style
food + drink
News
i100
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

Homeless Veterans appeal: 'You look for someone who's an inspiration and try to be like them'

Homeless Veterans appeal

In 2010, Sgt Gary Jamieson stepped on an IED in Afghanistan and lost his legs and an arm. He reveals what, and who, helped him to make a remarkable recovery
Could cannabis oil reverse the effects of cancer?

Could cannabis oil reverse effects of cancer?

As a film following six patients receiving the controversial treatment is released, Kate Hilpern uncovers a very slippery issue
The Interview movie review: You can't see Seth Rogen and James Franco's Kim Jong Un assassination film, but you can read about it here

The Interview movie review

You can't see Seth Rogen and James Franco's Kim Jong Un assassination film, but you can read about it here
Serial mania has propelled podcasts into the cultural mainstream

How podcasts became mainstream

People have consumed gripping armchair investigation Serial with a relish typically reserved for box-set binges
Jesus Christ has become an unlikely pin-up for hipster marketing companies

Jesus Christ has become an unlikely pin-up

Kevin Lee Light, aka "Jesus", is the newest client of creative agency Mother while rival agency Anomaly has launched Sexy Jesus, depicting the Messiah in a series of Athena-style poses
Rosetta space mission voted most important scientific breakthrough of 2014

A memorable year for science – if not for mice

The most important scientific breakthroughs of 2014
Christmas cocktails to make you merry: From eggnog to Brown Betty and Rum Bumpo

Christmas cocktails to make you merry

Mulled wine is an essential seasonal treat. But now drinkers are rediscovering other traditional festive tipples. Angela Clutton raises a glass to Christmas cocktails
5 best activity trackers

Fitness technology: 5 best activity trackers

Up the ante in your regimen and change the habits of a lifetime with this wearable tech
Paul Scholes column: It's a little-known fact, but I have played one of the seven dwarves

Paul Scholes column

It's a little-known fact, but I have played one of the seven dwarves
Fifa's travelling circus once again steals limelight from real stars

Fifa's travelling circus once again steals limelight from real stars

Club World Cup kicked into the long grass by the continued farce surrounding Blatter, Garcia, Russia and Qatar
Frank Warren column: 2014 – boxing is back and winning new fans

Frank Warren: Boxing is back and winning new fans

2014 proves it's now one of sport's biggest hitters again
Jeb Bush vs Hillary Clinton: The power dynamics of the two first families

Jeb Bush vs Hillary Clinton

Karen Tumulty explores the power dynamics of the two first families
Stockholm is rivalling Silicon Valley with a hotbed of technology start-ups

Stockholm is rivalling Silicon Valley

The Swedish capital is home to two of the most popular video games in the world, as well as thousands of technology start-ups worth hundreds of millions of pounds – and it's all happened since 2009
Did Japanese workers really get their symbols mixed up and display Santa on a crucifix?

Crucified Santa: Urban myth refuses to die

The story goes that Japanese store workers created a life-size effigy of a smiling "Father Kurisumasu" attached to a facsimile of Our Lord's final instrument of torture
Jennifer Saunders and Kate Moss join David Walliams on set for TV adaptation of The Boy in the Dress

The Boy in the Dress: On set with the stars

Walliams' story about a boy who goes to school in a dress will be shown this Christmas