The financial importance of UEFA Champions League football has been highlighted for Liverpool. The Reds have dropped one place in the annual Deloitte Football Money League.

Liverpool have been leapfrogged by Premier League rivals Arsenal and fall to eighth in the 2025 list after a fifth-placed league finish in 2022/23 meant a 2023/24 campaign without Champions League football, something they rectified last year.

The Reds, who top the Premier League and revamped league stage of the Champions League at present, had to be content with the Europa League last season, a competition that offers significantly smaller financial returns that that of European football’s top tier competition.

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The success of Arsenal in securing a return to Champions League football after several years out of it has provided a significant boost to finances, with the Gunners overtaking not only Liverpool, but also Tottenham Hotspur and Chelsea.

Liverpool’s 2023/24 financial results are expected to be published some time next month, and a loss into the tens of millions is expected, although some way short of £100m-plus that had been reported prior to Christmas.

Deloitte’s Sports Business Group, which advises governments, investors, sport governing bodies and organisations, liaised with clubs ahead of the report’s publication to determine the headline figures, with Liverpool’s total revenue for the 2023/24 financial year, according to the Money League data, sitting around €714.7m (£603.7m), an increase on the previous season, which had stood at £594m.

In the report, matchday income is placed at €132m (£111.5m), which if correct would be the first time the club had broken the £100m barrier, with capacity raised to 61,000 after the completion of the Anfield Road End redevelopment.

A significant rise came from broadcast revenue, with that figure standing at €715m (£604m), albeit not as high as it could have been had they had access to the lucrative pots of broadcast money from the Champions League last season.

Commercial revenue also rose, with €343m (£289.7m) against the 2022/23 figures of £272.5m.

The report also hints at a wage increase on the forthcoming accounts to put the club close on the €450m (£380m) mark per year, with the increase likely due to additions in the market and some contract renegotiations at higher sums.

Tim Bridge, lead partner in the Deloitte Sports Business Group, said: “Money League clubs continue to break records with ongoing growth in commercial and matchday revenues. While on-pitch performance is critical for teams to reach the top echelons of the rankings, high performing clubs are also able to diversify the way they generate revenue through unlocking innovative partnerships and developing the land and stadium space that they own or operate.

“While commercial revenue dominates the income of the top ten Money League clubs, broadcast income remains crucial for teams in the second half of the rankings. As competitions expand and create more broadcast and matchday opportunities, these can further increase the earning potential for clubs. At a time where there is more demand than ever for a greater number of matchdays, this must be balanced with player welfare, as they ultimately bring the on-field success that can earn clubs many further rewards off-field.”

The decision to increase capacity at Anfield further and to raise the standard of the Reds’ home to attract other non-football events during the summer, was part of the investment thesis for Reds owners Fenway Sports Group. Last summer saw the world’s biggest pop star, Taylor Swift, perform three sell-out gigs at Anfield.

Bridge believes that making better use of stadia will be key to clubs being able to push revenues higher as they look for more ways to make money outside of the traditional pillars of revenue.

Bridge said: “Club stadia are increasingly being valued as more than just matchday assets, with a number of clubs converting their grounds into multi-use entertainment venues that attract new visitors, sponsors, and retail opportunities.

“Football clubs are now realising the value of becoming far more than sporting brands, with media and entertainment becoming intertwined with the commercial potential that they have to offer.”