So far, Liverpool has had a disappointing summer, with fans’ discontent heightened by the collapse of the bid to recruit Martin Zubimendi at the last minute.
Zubimendi chose against joining Liverpool from Real Sociedad in a move worth more than £50 million, the Merseysiders’ first of the window.
A tough start at Anfield for new manager Arne Slot, as well as CEO Michael Edwards, who returned this summer after quitting his position as Liverpool’s sporting director two years ago.
However, Liverpool’s transfer market mentality under owners Fenway Sports Group has always been to secure the proper deals rather than seek quick fixes.
This attitude pervades all departments at Liverpool, including the commercial department, which, in the era of FFP and PSR, decides Slot and Edwards’ budget.
The Reds’ most lucrative commercial deals are their uniform, front-of-shirt, and sleeve contracts with Nike, Standard Chartered, and Expedia, which total approximately £110 million every season.
Liverpool are set to switch to Adidas after this season, while the other two will last until the end of the 2026-27 season.
However, commercial money in the modern game is not limited to the ‘big three’ sponsorships.
FSG is fully aware of this; Liverpool’s sponsorship portfolio is the least dependent on kit, front-of-shirt, and sleeve partnerships of any of the so-called Big Six.
TBR Football spoke exclusively with Liverpool University football finance lecturer Kieran Maguire to discuss the club’s commercial landscape, how it influences Slot’s capacity to act in the transfer market, and other topics.
Liverpool to bank £20 million thanks to a new business partnership.
Football documentaries are currently popular, maybe influenced by the success of Formula One’s Drive to Survive campaign.
However, former Liverpool manager Jurgen Klopp previously refused to allow cameras behind the scenes at the club in order to safeguard the sanctity of the dressing room.
However, the German did reach an agreement early this year, and Amazon is now leading the bid for the rights to a documentary about Klopp’s final months at Liverpool.
How much is this endeavor alone worth to Liverpool? Maguire’s forecasts included past Amazon-packaged series involving Tottenham and Newcastle.
“Klopp possesses intelligence, wit, and charisma.
“Any documentary about his final few months is likely to draw a large audience, not just in the UK, but around the world.”
“Given that the Newcastle and Spurs films were thought to be worth £10 million, there’s no reason Liverpool shouldn’t be seeking for at least double that amount.
“If Klopp is interviewed as part of the process, as I am confident he will be, he will be open about his choice to move on.
“This will create significant watching figures for Amazon Prime, and Liverpool will set their prices accordingly during talks.
FSG wants Liverpool to be more than just a football club.
FSG sees Liverpool as a long-term capital appreciation project that they will eventually sell for a profit.
If they sold Liverpool tomorrow, they would easily receive a 10x return on the £300 million they paid in 2010.
However, they, like the majority of US sports investors, think that football has significantly more untapped revenue potential and will not exit the club anytime soon.
Maguire believes that the ultimate long-term goal is to expand Liverpool’s brand in order to make it the most profitable asset conceivable.
“FSG wants Liverpool to be recognized as more than a football brand.
“They want them to be a sports and leisure brand that non-football fans would be interested in.
“They will capitalize on the fact that Liverpool is known not only for football but also for music.
“The city was formerly named the European Capital of Culture, and it is a popular tourist destination. A trip to Anfield would be the cherry on top if you were visiting the city.
“There is no reason why Liverpool can’t enter all of these other areas rather than waiting for those markets to come to them.
“That can be accomplished by making the Liverpool brand something that influencers and celebrities want to associate with.
How will Arne Slot strike a balance between business and sports interests at Liverpool?
Few clubs in the world have as much commercial appeal as Liverpool.
With an additional £20 million from the Klopp documentary, Liverpool will easily break the £150 million level for non-merchandise commercial revenue in 2024-25, according to a UEFA report released earlier this year.
How would Slot, whose only managerial experience is in the Netherlands, deal with the sometimes conflicting needs of the business department and his coaching?
“The commercial department is there to generate revenues and relationships with brands,” Maguire told me.
“This enables the team to recruit and keep players who have demonstrated success.
“The two have a symbiotic relationship.
“There may be frustration between the two departments over player recuperation and wellness due to the demands that pre-season tours and other activities make on players; yet, managers reluctantly acknowledge that it is a part of the modern game.
“If the commercial department helps them sign that one player who can make a difference next season, Arne Slot will go along with it.
“He is a fairly pragmatic character and will just have to get on with and recognise that net plusses are, broadly, better than the minuses.”
