On Thursday, the mess of Liverpool’s finances was revealed to the club and its owners on Thursday. As the Daily Mail reported, the Merseyside club announced an annual loss of £49.4m.
Yet the most alarming figures were the £35m on plans for the creation of a new stadium in Stanley Park (plans which have now been scrapped) alongside £8.4m that the owners paid to remove now England manager Roy Hodgson and his backroom staff.
These devastating financial blows add more pressure onto new owners the Fenway Sports Group as they continue to reassert stability about the club. The £300m purchase of the club in October 2010 also saw a £200m investment to reduce the team’s debts. However, the £35m of wasted money and Hodgson’s payoff were not included.
Such revelations will send shockwaves throughout the entire club. Dalglish looks keen to rebuild his squad this summer, yet with such financial turmoil apparent at the club surely the transfer budget will be reduced to address these debts. Remember, Liverpool have also spent around £130m over the past two years on their squad.
Perhaps it is the time now for Dalglish to step up and do his job of coaching the players, as opposed to simply signing people and hoping they will fill the holes in the team.
Liverpool’s proposed expansion now also seems to have taken a step back. When Hicks and Gillett bought the club in 2007, many were excited about the prospect of a 71,000 seater stadium in Stanley Park. This now seems no more than a pipe dream, as John Henry looks set to either find a cheaper alternative or refurbish Anfield.
Yet stadium development for the club is crucial as they look to make up the distance between themselves and the likes of Manchester United, Manchester City, Arsenal, Chelsea etc.
Such revelations, although not seeming a huge amount of money by today’s football standards, will have serious effects for Liverpool. A reduced transfer budget is likely, forcing Dalglish to use the players he has to improve on Liverpool’s league performance this season. Improvement is essential in the eyes of the fans (Liverpool have only obtained 49 out of a possible 108 points this season) with Europe a sure fire way to get the famous Anfield atmosphere back whilst generating more revenue for the club.
Whilst the situation is manageable at the moment, failure to achieve on pitch improvement may be costly for King Kenny & Co. …Like what the TT have on offer? Sign up for more notifications!