Finance guru delivers ‘huge’ Liverpool reveal after £325m-plus news
Liverpool will only pay tax if they turn a profit in their next set of accounts – but their players will shell out “huge sums” regardless.
So says finance guru Doctor Dan Plumley, speaking exclusively to Football Insider about the findings of a recent report published by EY.
The Premier League paid in around £7.6billion to the UK economy in 2019-20, the financial services firm revealed on Tuesday (18 January).
Top-flight players contributed £1.4bn out of their salaries towards that figure.
Liverpool spent £325m on player wages in the last recorded financial year.
The Liverpool Echo reported on Tuesday (25 January) that the club’s wage bill will almost certainly rise again when they release their next accounts.
Plumley explains that Liverpool superstars’ tax contributions will rise in step with the annual figures.
“Most of what we see is players who are contributing to the tax picture,” the Sheffield Hallam University expert told Football Insider‘s Adam Williams.
“You can link that to the clubs, with the more the players are paid, the more tax they pay. With the best-paid players, we’re obviously talking huge sums.
“In terms of the club themselves, they will reveal how much tax they pay because it’s in the accounts.
“But the thing to remember is that the club only pay taxes on profits and not on losses. So it does go a bit up and down.
“They made a loss in 2020 and a lot of clubs are showing deterred tax payments as a result.
“But if we look a the season before, they paid £8.5m in tax on profits of £42m.
“You can isolate the individual club figures, but a lot of what is driving the tax money is the players themselves.”
Liverpool are currently involved in a contract stand-off with Egyptian superstar Mohamed Salah.
The 29-year-old is into the final 18 months of his Anfield deal.
In other news, pundit suggest Liverpool have advantage over Leeds United and West Ham in race to sign Fabio Carvalho.