Liverpool to smash £159m record as new off-pitch deal confirmed

Liverpool are on course to set a new club-record, with a £159m pay-off imminent.

While their approach may have at times frustrated Liverpool fans wanting to see more ambition in the transfer market, Fenway Sports Group are considered among the best owners in world football.

They bought a controlling stake in the club for £300m in 2010 – and 14 years later, they would recoup at least 10 times that if they were to sell the club tomorrow.

Broadcast income has soared thanks to the Premier League’s world-beating domestic and overseas TV deals.

But FSG-driven projects like the redevelopment of Anfield and a total rethink of the club’s commercial strategy have been the biggest financial drivers.

And in an era when spending in the transfer market, and therefore success on the pitch, is linked directly to revenue, FSG’s self-sufficient approach will pay dividends in future.

With their latest commercial deal, Liverpool are once again breaking new ground.

• READ MORE LIVERPOOL FINANCE NEWS: Official update on £44m Liverpool deal as off-pitch statement issued

Liverpool sign ‘first-of-its-kind’ deal with German brand

Liverpool’s commercial income in 2022-23, the last financial year on record, stood at a remarkable £272m, which was behind only Man City in the Premier League.

The biggest individual contributors to that figure are Nike, Standard Chartered and Expedia, club’s kit, front-of-shirt and sleeve partners, who pay a total of around £110m per year.

However, new data from Sports Business Institute Barcelona have shown that Liverpool’s sponsorship portfolio is more diverse than any other Premier League team.

Just 35 per cent of their commercial income comes from the ‘big three’ sponsors.

For context, Arsenal’s income over the same three categories was 81 per cent of their commercial total.

Their broad sponsorship base includes 21 partners in total.

The newest edition is German workwear company STRAUSS, who Liverpool announced as a partner in a “first of its kind deal earlier this week.”

That deal will help Liverpool easily surpass the £159m of sponsorship income they made in 2022-23, the last financial year on record.

“As a family-owned business, with hard work and innovation at its core, STRAUSS aligns perfectly with our values as a club,” said Liverpool’s chief commercial officer Ben Latty.

“We also both take great pride in our heritage, our communities and the knowledge that success is built on teamwork.

“This new partnership is a real natural fit and we’re thrilled to welcome STRAUSS as the newest member of the LFC partner family.”

Meanwhile, STRAUSS CEO Henning Strauss said: “Liverpool FC is one of the biggest names in sports, with the fanbase to match.

“This LFC partnership moves STRAUSS into the Premier League and underscores our global ambition.

“Over the coming years, we will continue building our portfolio of partnerships across the globe with organisations that, like Liverpool, share an emotional connection to the hard-working people who make up STRAUSS’ customer base. We couldn’t be happier.”

TBR Analysis: Commercial income directly affects Arne Slot’s transfer budget

In his first season at the helm, new manager Arne Slot is yet to add to his squad in the transfer market.

Liverpool have been linked with the likes of Newcastle’s Anthony Gordon, while Wolves star Pedro Neto is also reportedly a target at Anfield.

Unlike the owners of Man City, Chelsea and Newcastle, FSG will not bankroll big losses at Liverpool but instead emphasises that every signing must be costed against revenue.

For that reason, commercial income from the likes of STRAUSS and others is integral to the playing budget.