Use your head like Sadio and subscribe to the Liverpool FC newsletter Sign me up Thank you for subscribing We have more newsletters Show me See our privacy notice Invalid Email

Liverpool's latest accounts show that the club reported a profit after tax of £39million.

The Reds' overall revenue for the financial year to May 31 2017 increased by £62million to £364million – a sharp rise of 20.5%.

Of the three main revenue streams, media went up by £30million to £154million, commercial climbed by £20million to £136million and matchday received a £12million boost to £74million.

A year ago Liverpool announced an overall loss of £21million but now they are back in the black and the latest set of results are all the more impressive considering that they cover the 2016/17 season when the Reds weren't competing in Europe.

Andy Hughes, the club's chief operating officer, told the ECHO: “We are really happy and I think it reflects a continuation in the trend established since Fenway Sports Group's takeover in 2010.

“There's been a complete transformation financially. From being on the brink of bankruptcy, we've now seen seven years of consistent revenue growth. It's a significant turnaround.

Video Loading Video Unavailable Click to play Tap to play The video will start in 8 Cancel Play now

“We have negotiated our financing deals multiple times and we have invested large amounts of money in the infrastructure of the club and the playing squad.

“We have improved profitability and created a healthy cash flow. With profits being reinvested back into the club and into players, long-term stability has become a reality.

“You're now looking at a completely different organisation compared to when FSG took over the club.”

Media revenue increased by £30million largely as a result of the new Premier League TV deal. Liverpool's absence from Europe cost them but they did benefit from having a record 29 league matches picked for live TV coverage – up from 23 the year before.

It was a successful year for the Reds commercially as they generated an extra £20million by securing 12 new partnerships including Malaysia Airlines, Konami and Joie. They also signed a training kit sponsorship deal with Bet Victor.

Three existing partners – including Carlsberg - renewed their contracts, while new wholesale retail businesses were established in USA, Hong Kong, Canada and Holland. The new home kit to mark the club's 125 anniversary yielded record-breaking sales.

The £12million lift in matchday revenues was largely down to the extra hospitality provided by the new Main Stand, which opened its doors in September 2016 and increased capacity to around 54,000.

The figure would have been higher but for the lack of European football. Liverpool only played 24 home games in 2016/17 – seven fewer than the previous season.

“The Main Stand has delivered against all of our key objectives,” Hughes said.

“It has sold out and we are really pleased with the project from start to finish. The really strong commercial growth is just as pleasing.”

Liverpool maintained ninth position in the Deloitte Football Money League.

Cash generated from operations leapt from £37million to £71million, while the net cash investment on players and infrastructure was £91million compared to £95million the year before.

Video Loading Video Unavailable Click to play Tap to play The video will start in 8 Cancel Play now

Around £52million of that £91million figure was spent on infrastructure projects. Having completed the Main Stand, the new retail store and the new pitch and other improvements at Anfield, Liverpool will this summer begin work on their new £50million training complex at the Kirkby Academy. It should be completed by the summer of 2020.

In total it will take the overall commitment to investing in infrastructure to around £200million.

The Main Stand was built courtesy of a low interest £109million inter-company loan provided by FSG. It isn't over a fixed period and Liverpool have yet to start paying it back.

Liverpool signed six players during this financial period - Sadio Mane, Gini Wijnaldum, Loris Karius, Joel Matip, Ragnar Klavan and Alex Manninger. There were also instalments paid to clubs for players Liverpool had bought in previous years such as Roberto Firmino.

Eleven first-team players left the club, seven signed new contracts and 11 Academy players penned professional deals.

The wage bill climbed by around 8% overall with the club now employing in excess of 700 staff.

As a result of the £91million investment in players and infrastructure, net bank debt increased by £22million to £67million, but Hughes insists that isn't cause for concern.

Video Loading Video Unavailable Click to play Tap to play The video will start in 8 Cancel Play now

“No, the levels we are talking about are absolutely sustainable,” he said. "Given the financial growth we're talking about, those numbers aren't significant.”

The timing of instalments on player transfers has a big impact on the balance sheet as there's a difference between profit and cash flow.

For example, when Liverpool sell a player the profit is recorded but the club will actually receive that money in a number of payments over four or five years.

"Performance on the pitch and the reinvestment in our squad is always a priority and following the club’s record signing (of Virgil van Dijk) last month we will look to invest again in the summer," Hughes added.

“Progress on and off the pitch is critical to the growth of this football club. We all want success and everything we’re doing is geared toward fulfilling our football ambitions.

"We must also continue to manage our finances and cash flow effectively that we have worked so very hard to secure since FSG took charge of the club.”