Liverpool are on track to break a new club record, with a £159 million pay-off nearing.
While their strategy has occasionally frustrated Liverpool fans who wish to see more ambition in the transfer market, Fenway Sports Group is widely regarded as one of the best owners in the world of sport.
They paid £300 million for a controlling stake in the club in 2010; 14 years later, if they sold the club tomorrow, they would recoup at least ten times that amount.
The Premier League’s world-class local and international TV deals have increased broadcast revenue significantly.
However, FSG-driven projects such as the redevelopment of Anfield and a complete overhaul of the club’s commercial strategy have been the primary financial drivers.
And, in an era when spending in the transfer market, and thus performance on the pitch, is closely related to revenue, FSG’s self-sufficient approach will pay off in the future.
Liverpool is breaking new ground once more with their latest commercial deal.
Liverpool signs ‘first-of-its-kind’ agreement with German brand.
Liverpool’s commercial income in 2022-23, the last financial year on record, was a phenomenal £272 million, trailing only Manchester City in the Premier League.
Nike, Standard Chartered, and Expedia, the club’s kit, front-of-shirt, and sleeve sponsors, contribute the most to that sum, paying a total of approximately £110 million every year.
However, fresh figures from the Sports Business Institute Barcelona demonstrate that Liverpool’s sponsorship portfolio is the most diverse of any Premier League side.
Only 35% of their commercial income comes from the ‘big three’ sponsors.
For reference, Arsenal’s income in the same three categories accounted for 81% of their commercial total.
Their vast sponsorship base consists of 21 partners in total.
The most recent addition is STRAUSS, a German workwear business that Liverpool revealed as a partner in a “first of its kind deal earlier this week.”
That agreement will allow Liverpool to easily surpass the £159 million in sponsorship revenue generated in 2022-23, the most recent fiscal 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 has a direct impact on Arne Slot’s transfer budget
In his first season in charge, new manager Arne Slot is yet to add to his roster through the transfer market.
Liverpool has been connected with Newcastle’s Anthony Gordon, and Wolves’ Pedro Neto is also apparently a target at Anfield.
Unlike the owners of Manchester City, Chelsea, and Newcastle, FSG will not underwrite large losses at Liverpool, insisting that every signing be costed against income.
As a result, commercial revenue from STRAUSS and others is critical to the playing budget.
