Liverpool set for £144m finance boost thanks to Steven Gerrard

Liverpool have a wealth of marketable stars in their current ranks, but some of the big names from the past are owed some thanks for their latest financial boost.

The Merseysiders earned a club-record £272m in commercial income in 2022-23, the last season for which full financial data is publicly available.

When the club releases its accounts for 2023-24, that figure is expected to have risen sharply, likely past the £300m barrier.

Liverpool‘s commercial appeal is demonstrated by the diversification of their sponsorship portfolio.

Their deals with Nike, Standard Chartered and Expedia (kit, shirt, sleeve) are among the largest of the so-called Big Six, but they account for just 35 per cent of their total commercial income.

For context, Arsenal’s kit, shirt and sleeve deals were 81 per cent of their commercial gross.

Profit and Sustainability Rules (PSR) are almost a non-issue for Liverpool given that owners FSG have set them up to more or less break even financially year on year.

In fact, most analysis suggests that Liverpool have more PSR headroom than every Premier League club besides Man City and Brighton.

UEFA rules are slightly stricter and are moving towards a squad cost ratio model wherein clubs will be allowed to spend a maximum of 70 per cent of turnover on wages, transfers and agent fees.

But here too, Liverpool’s cost control means they will have zero problems.

However, that is not to say that FSG – whose Liverpool side are the only club not to have made any signings so far this summer – will sanction big spending going forward.

The Boston-based group have made it abundantly clear that if Liverpool are to increase expenditure, there needs to be a correlating increase in revenue.

That makes every penny the club generates in commercial income crucial.

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Steven Gerrard cited as Liverpool seal new commercial deal

According to industry experts Sportcal, Liverpool’s sponsorship revenue for 2023-24 is expected to be in the region of £142m.

In 2024-25, that figure will increase as a result of the club’s several new commercial deals.

Japan Airlines is likely to be the biggest of Liverpool’s new tranche of partnerships, but fresh deals with workwear partner STRAUSS and robotic company Husqvarna will also yield an upswing.

Now, British sports drink company Lucozade has become the latest addition to Liverpool’s global sponsorship portfolio, which is now 20 brands strong.

According to finance expert Łukasz Bączek via X, the partnership will be worth £2m per season over its multi-year duration.

That will see Liverpool’s sponsorship income rise to a guaranteed £144m, although in reality the final figure will be far higher.

Interestingly, Liverpool explicitly mentioned the role of their stars in previous Lucozade campaigns.

Steven Gerrard and John Barnes, both of whom were previously ambassadors for the company, were namechecked in the press release, for example.

Clubs are increasingly leveraging former stars like Gerrard in their marketing activity.

Is PSR a factor in Liverpool’s pursuit of Martin Zubimendi?

Commercial income is directly related to PSR, but Liverpool – unlike the likes of Newcastle United and Chelsea – do not necessarily have to boost it to spend in the transfer market.

Liverpool are believed to be close to signing Real Sociedad midfielder Martin Zubimendi, who has a £52m buyout clause which must be paid upfront.

Commercial income from sponsorship deals like the one with Lucozade will provide Liverpool with short-term cash to help finance the Zubimendi deal and, fans will hope, more before the cost of the window.