Liverpool FC recorded a pre-tax loss of almost £20m last season despite pulling in record revenues, reveal the club's official accounts.
Revenue in the 12 months to May 2016 increased by £3.9m year-on-year to reach £301.8m, breaking the £300m mark for the first time. It has risen every year since the club was taken over by Fenway Sports Group in 2010.
However, last season was a tumultuous one at Anfield and the Reds recorded a loss because of the cost of assembling the current coaching and playing staff, reports the Daily Telegraph.
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"During the course of the financial year, Liverpool paid off Brendan Rodgers and his backroom team and recruited Jurgen Klopp and his staff," says the paper. "They also bought high-profile players such James Milner, Nathaniel Clyne and Roberto Firmino. However, during the same period Liverpool sold Raheem Sterling to Manchester City for £49m.
"The ongoing costs of rebuilding the Main Stand also contributed – the yields from the new development will not be known until next year's figures are released."
Football magazine FC Business paints a largely positive picture, saying: "Media revenue and matchday revenue increased, mainly as a result of the club reaching two cup finals and a successful pre-season tour in Asia and Australia."
Commercial revenues also "remained strong" with several new partnerships and sponsorship deals, despite construction work at Anfield.
"Digitally, there was an 18 per cent increase in new followers, taking the overall total to over 50 million across the club’s social media platforms. New LFC websites were also launched in Arabic, French and Spanish," the mag adds.
Andy Hughes, Liverpool's chief operating officer, said: "These results demonstrate the solid financial progress that's been made over the past six years under the leadership of FSG with continued investment in the playing squad and the completion of the main stand.
"The increase in the underlying revenue adds further strength to the club's financial position despite the cost of football rising with player transfer fees, wages and agents' costs."