Liverpool may pay a penalty for their return to the Champions League in the form of financial fair play sanctions. They are expecting £7m in prize money next month, but the payment would be withheld if they are referred to Uefa’s Club Financial Control Body.
Liverpool may pay a penalty for their return to the Champions League in the form of financial fair play sanctions. They are expecting £7m in prize money next month, but the payment would be withheld if they are referred to Uefa’s Club Financial Control Body.
Because they have not played in either the Champions League or the Europa League in the last two seasons, they have not been required to submit accounts, but now they have to do so. Clubs are required to limit losses to £35.4m over the two seasons. Liverpool lost £49.8m in the 2012-13 financial year, after a loss of £41m in the preceding ten months.
However, expenditure on infrastructure and youth development can be deducted from what would otherwise be a headline loss of £90m. Projections of future revenue can also be take into account. Even so, Liverpool could be placed in an ‘at risk’ category and investigated. Last year 76 clubs were found to be ‘at risk’, but only nine were eventually sanctioned. If they were investigated, the prize money would be held back and this could have a short-term impact on their cash flow.