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big deal Liverpool's transfer position is revealed after gloomy financial report

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Jurgen Klopp said he was determined to help put things right at Liverpool (Lee Smith/PA)

Jurgen Klopp said he was determined to help put things right at Liverpool (Lee Smith/PA)

Jurgen Klopp said he was determined to help put things right at Liverpool (Lee Smith/PA)

Liverpool announced some grim financial figures on Tuesday as the cost of the coronavirus pandemic was revealed, but they are still expected to press forward with plans to sign RB Leipzig defender Ibrahima Konate.

The Sunday World broke the news that Liverpool had made French defender Konate their top transfer target in March, with a deal now believed to be close for the 21-year-old to seal a £34million move to Anfield.

Liverpool should also be in a position to finance the £18million signing of Schalke defender Ozan Kabak, after he has impressed during his loan spell at the club in recent weeks.

Those two deals could be financed by departures at Liverpool, with Joel Matip, Xherdan Shaqiri, Naby Keita, Divock Origi and Takumi Minamino all facing uncertain futures at Liverpool.

Manager Jurgen Klopp's spending power is certain to be impacted by his side's push to secure a top four finish in the Premier League and the Champions League qualification that comes with it, yet that target may well be missed given Liverpool's uncertain current form.

On Tuesday, the club reported a £46million pre-tax loss for the financial year ending May 2020 – which equates to an £88m negative swing from their position just over 12 months ago.

The loss of significant media revenue and match day income due to Covid-enforced empty grounds contributed to the huge difference, and the PA news agency understands the total impact of the pandemic will hit the club to the tune of £120m by the time supporters are allowed to return.

In March 2020 the club announced a profit of £42m, the fifth time in the previous six years Liverpool had been in the black, but that surplus was wiped out as a result of last season initially being suspended in March and then restarted behind closed doors.

The impact of the pandemic is largely why club owners Fenway Sports Group last month sold a 10 per cent share for £543m to private investment firm RedBird Capital in order to provide continuity and stability in a volatile economy.

There was a financial boost from the club winning their first Premier League title as, although that did not happen until June 2020, Jurgen Klopp’s side were on the verge of being crowned champions when lockdown was imposed.

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Ibrahima Konate of RB Leipzig. (Photo by Ahmad Mora/DeFodi Images via Getty Images)

Ibrahima Konate of RB Leipzig. (Photo by Ahmad Mora/DeFodi Images via Getty Images)

Ibrahima Konate of RB Leipzig. (Photo by Ahmad Mora/DeFodi Images via Getty Images)

Also included in their income for the year was about £3.4m for winning the 2019 Champions League final as it fell just outside the previous financial reporting period, which benefited from the huge amount of revenue for reaching the final, and £3.8m for winning the UEFA Super Cup in August 2019.

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Eight new partnerships were announced during this period while Carlsberg renewed their existing long-term association.

As a result commercial revenue rose by £29m to £217m but that could not compensate for media revenue dropping by £59m to £202m and matchday revenue was down £13m to £71m. Wages across the club also rose to £325m from £310m.

LFC Retail experienced a significant increase in growth with the Premier League champions’ new Nike home kit breaking record sales while international expansion plans also added growth via new retail stores in Thailand, Singapore and Vietnam.

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