Liverpool FC is operating at a profit, the club has confirmed.
The Merseyside team announced a pre-tax of £0.9 million in the year to May 31st 2014. It is the first time Liverpool has entered the black in seven years and is a stark contrast to the £49.8 million loss recorded a year earlier. Revenue was up by 19 per cent to £255.6 million while there was a five per cent rise in its commercial activity to £103.8 million as it secured a raft of new sponsorship deals.
One of the driving forces behind Liverpool's ability to return to profit is the Premier League's recent bumper TV deal. Between 2013 and 2016, broadcasters will pay a combined £3.018 billion to screen top flight football. In the three years after, the figure will go up to £5.136 billion; an increase of 71 per cent.
Sky has been the main benefactor of the latest deal, paying £4.2 billion for five of the seven TV packages while BT picked up the other two for £960 million. This huge surge in revenue has allowed a number of top flight clubs to improve their financial performance.
Liverpool chief executive Ian Ayre said: "We continue to make good financial progress. Although these results are nearly 12 months old, they demonstrate that the transitional period we've been through over the past four years have stabilised the club and provided a platform for growth."
Avoided FFP fine
Liverpool was recently cleared of a breach of financial fair play (FFP) by UEFA. The Club Financial Control Body (CFCB) confirmed that the Merseyside club, along with Czech team Sparta Prague, had satisfied to meet the FFP requirements and would not face any further investigation.
Mr Ayre described the review by the CFCB had been a "difficult" time for the club but was pleased it had been resolved.
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