Liverpool have announced a pre-tax loss of £19.8 million despite posting record revenues.
Figures for the financial year ending May 31, 2016 revealed the cost of the Reds’ turnover as Jurgen Klopp replaced Brendan Rodgers as the club’s manager.
Extended runs to the finals of the League Cup and Europa League helped boost revenues with match day income rise by £23.6m and TV fees by £3.4m.
However the redevelopment of Anfield’s Main Stand restricted access on non-match days which saw Liverpool’s commercial revenues drop by £700,000.
Overall revenue broke the £300m barrier for the first time in the club’s history and continued the year-on-year increase under current owners Fenway Sports Group.
But a sizeable recruitment process, which included the £32.5m signing of Christian Benteke and Roberto Firmino’s £29m capture, contributed the pre-tax deficit.
Andy Hughes, Liverpool’s chief operating officer, said: “These results demonstrate the solid financial progress that’s been made over the past six years under the leadership of FSG with continued investment in the playing squad and the completion of the Main Stand.
“The increase in the underlying revenue adds further strength to the club’s financial position despite the cost of football rising with player transfer fees, wages and agents’ costs.
“During this reporting period, we also agreed a new five-year credit facility which further secures the club’s long-term financial stability.
“All three main revenue streams continue to show strength and commercial revenues held firm irrespective of the impact of the main stand at Anfield.”