Liverpool stand to make a lot of money with continued Champions League success
Success in the Champions League is a lucrative affair.
For Liverpool, a club that made a £46m pre-tax loss in their pandemic impacted 2019/20 accounts, their success in the competition in 2019, that was included in the 2018/19 financial period, delivered around £113m in revenues and was a major factor in the Reds posting record figures of £533m and a £42m profit before tax.
The financial reports for 2020/21 will likely make for pretty grim reading once more as the Reds include the full impact of a campaign played behind closed doors and a wage bill that has risen further owing to bonus payments made for winning the Premier League.
But with commercial activity moving in the right direction, a strong broadcast deal in place and the club looking like they have what it takes to go deep into this year’s Champions League then it could well be that 2022 offers the green shoots of recovery.
This season has already been a lucrative one for Liverpool in the Champions League, one that has underscored just how important that late-season rally was for Jurgen Klopp’s patched up side last season, and how moments like Alisson Becker’s late winner were able to pave the way to a vital revenue stream.
So far this campaign, through qualification for the group stages and by winning all six of their group stage games and booking a spot in the last 16, Liverpool have banked some £35.5m in prize money.
Progression from the group stage is worth £8.6m, then worth £9.5m for winning in the last 16, £10.8m for the quarter finals, and £13.5m for winning in the semi-final. The winners receive the sum of £3.5m.
But it is not simply the prize money accrued by winning games which is important. The market pool, where television revenue is redistributed based upon the slice of market share each nation competing boasts and the performance of the teams in their domestic leagues the previous season, is very lucrative.
Last season for instance, Liverpool would have pocketed around £19m by virtue of them winning the Premier League in 2019/20. When they won the Champions League in 2019 their market pool share was around £11.8m.
For clubs that go all the way and lift the silverware they can book some £68.5m in revenue, although what gets added to the pot then creates much more head-scratching as UEFA coefficients come into play.
UEFA’s coefficient rankings, where £31.5m are dished out for the teams at the top, are based upon how well a team has fared in Europe over the past 10 years.
Liverpool’s record over more recent seasons has seen them climb the list, likely pocketing around £25.5m for their part.
But without factoring in the revenue streams that arise from TV money and UEFA co-efficients, success in the last 16 would add another £9.5m to the pot from competitive success, raising to total earnings to £45m for this season. Vital money at a crucial time financially.
