Liverpool has announced a pre-tax loss of £46 million for the financial year ending May 2020, an £88 million drop from their place just over a year ago.
The big gap was attributed to the loss of considerable media sales and match day profits due to Covid-enforced empty grounds, and the PA news agency understands the overall effect of the pandemic would cost the club £120 million by the time fans are able to return.
The club declared a profit of £42 million in March 2020, the fifth time in the previous six years that the club had made a profit, but that profit was washed out as a result of last season being suspended in March and then restarted behind closed doors.
The effect of the pandemic is one of the main reasons why club owners Fenway Sports Group sold a 10% stake to private investment company RedBird Capital for £543 million last month in order to provide continuity and stability in a turbulent economy.
“This financial reporting period was up to May 2020 so approaching a year ago now,” said managing director Andy Hughes.
“It does, however, begin to demonstrate the initial financial impact of the pandemic and the significant reductions in key revenue streams.
“We were in a solid financial position prior to the pandemic and since this reporting period, we have continued to manage our costs effectively and navigate our way through such an unprecedented period.
“We can now look ahead to the conclusion of this season and hopefully a more normal start to next season.
“It’s no secret that supporters have been greatly missed at Anfield over the past year and we look forward to having them back.”
The club, however, received a financial boost from winning their first Premier League title, which did not happen until June 2020, but Jurgen Klopp’s side was on the verge of doing so when lockdown was implemented.