The mystery of Liverpool's INSANE wage bill explained

Liverpool have enjoyed a successful season on the pitch, but when the club’s finances for the 2023-24 season were released some fans were left with questions.

The period saw the club make the biggest loss in its history, £57 million but also saw record revenue of £614m.

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Broadcast revenue fell by almost £40m because the Reds were not in the Champions League, but the club’s wage bill rose by £13.2m – even after missing out on Europe’s top club competition.

Part of this rise can be attributed to the almost £10m that was paid to Jurgen Klopp and his staff when they departed, but some supporters will be questioning how Liverpool have accumulated the second highest wage bill in the Premier League, £386.1 million annually.

Liverpool’s rising wage bill

Only Manchester City have a higher wage bill in the Premier League, but this figure doe not just represent a club’s outlay on player wages.

All staff and officials who are paid a wage by the team are included in this figure, including the over 2,000 matchday staff.

A new report from The Athletic has revealed some of the other factors that are behind Liverpool's monster wage bill.

The report states that the club are one of English footballs biggest employers and points out that although the Reds’ wage bill may be one of the highest in the country, they consistently spend less on transfer fees.

It is also explained that Liverpool’s qualification for this season’s Champions League will have triggered bonuses in player and staff contracts that will have been counted in last season’s wage figure.

Liverpool’s wider financial situation

The club recording the worst loss in their history is of course a shock, but the long-term implications don’t appear to be severe.

The increase in revenue means that the club spent the same proportion of their revenue on wages despite an increased wage bill, and the success of this season on the pitch, combined with a lucrative new kit deal with Adidas, means the Reds are likely to record a profit again this season.

Between 2017 and 2019 the Reds recorded a profit of over £200 million, and supporters will be hoping that the club can once again deliver such returns in the coming seasons.

This summer is set to be a big one in the transfer market with multiple high-profile departures expected, as exclusively revealed by Anfield Watch, and the Reds wage bill could rise once again next year, but success on the pitch and ever-increasing revenue should balance that out.

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