Ian Ayre defends Liverpool despite huge losses

The club’s debt rose by £21.8m to £87.2m in the 10 months between August 1 2011 to May 31 2012 — a restructured period designed to bring alignment with the football season.

However the loss was less than the £49.3m made the previous year and came against the backdrop of no European football, although Liverpool did get to two cup finals, winning one.

Some of the deficit resulted from heavy investment in the transfer market and the costs associated with bringing in the likes of Stewart Downing (£20m) and Jordan Henderson (£16m) in the weeks preceding the accounting period — while offloading other players at a loss.

But with the club’s owners Fenway Sports Group firmly focused on the impending arrival of Financial Fair Play Ayre stressed there was necessary work to be undertaken.

“The key message for me is that we are continuing to transition to the point we have been working on for several years under this ownership, which is to continue to improve revenues and manage our cost base effectively,” he said.

“The biggest cost base without doubt is player trading and player wages, but these accounts demonstrate that we are still working hard to improve that.

“I take comfort in the fact that the work we have done, some of which costs us a lot of money in this period and beyond, looks pretty painful at the time.

“But as long as you invest in it and manage it in the right way, then hopefully it bears fruit as we go forward and gives us a better platform to exist on in a different environment and in a world where we are expected to break even.

“You never take comfort from any business that makes a loss, but I am pleased that we’re making the progress we are making.”