Financial breakdown of our title earnings - not everything can be spent on transfers!
Alright reds. This will be truly short, well, short for one of my blogs! We reported the payments from the Premier league yesterday. I just want to break the payment down so we all know what it actually is. As it's not as cut and dry as it may seem.
So to start, yes we've won the league at long last, and yes we won the Club World Cup! Two wonderful things we've never had before and they're both quite nice and shiny too. A word of warning though, these tournaments aren't worth as much as you may think.
Okay, so we've seen that LFC are to receive £175m from the PL. This often gets reported as winnings by mainstream media. Let's get this straight, they're not winnings, they're contractual earnings that the PL must pay to all clubs.
Each club gets an equal share, facilities payments, merit shares, domestic and international TV money and a commercial revenue payment. Once you add these together and then subtract them from our PL payment, we have our actual winnings.
So here's the non emotional breakdown that hopefully prevents fans from having a full scale emotional meltdown. The equal shares payments is as suggests and is an equal payment of £34m to each club, we receive the 2nd highest facilities payments of £33m, our merit share payment this season is £38m, TV money is £43m and our commercial revenue payment is £5m. All this equates to an initial payment of £153m.
So that means our winnings this season are actually only £22m*. Now this would usually be larger but it was reported at the start of the season that the actual winnings would be less this season for some reason or another. I can't remember why but I certainly read about it. But the international TV deal kicked in this season so has balanced it all back out again.
The Club World Cup is pretty much the same sort of layout as the PL but not with such significant sums. Off the top of my head, the CWC was, after our expenses, was worth somewhere in the region of £15m.
So reds, the numbers aren't as big as it may seem, we have only earned £30m in winnings this season and it's not the big bonanza some papers and news outlets are leading us to believe. And if we take those winnings and our loss of revenue, in the region of £200m and growing each week fans aren't allowed back in the stadiums, it's not very exciting reading at all. So now's the time to look after our penny's, keep our hands on our wallets and not get carried away. There is money but not to the extent that fans may think, we've one bit of business done. A CB and Thiago looks like we'll be done for the summer but then we may be perfectly placed to spend next year.
Anyway, sorry for pissing on everyone's cornflakes but I thought this was worth pointing out so as to avoid WWIII on the chats and comments.
Simply put - we do get the money from playing in, and winning the league, but we cannot spend all of that on players or in one go as some would have you believe.
Later Reds
PS. These are projected breakdowns, I've sourced them from a few different reliable sites and simply used an average. So the winnings could be higher or lower but still won't be £175m, I don't imagine the prize money itself to be much more than £35m but using the average it comes in much lower. So don't everyone attack me if it's higher than what I've stated in the blog!
Comments
Fantastic article ! Hopefully stop a lot of people on here whinging about spending cash.
thanks for adding some common sense, I have been trying to point this out for weeks
well said if they are losing money how can they spend money they cant its a business with bills to pay .