Liverpool's surging wage bill and how it really compares to rivals Man City

While transfer spend may be less than that of their rivals, Liverpool's wage bill continues to rise.

The Reds released their financial statements for the year ending May 2020 on Tuesday, the accounts showing the impact of the first two months of the pandemic and a £46m loss for the club, with overall revenues down £43m.

The 2019 accounts were in much ruder health, with the club seeing the benefits of their success in the Champions League reflected in a £42m pre-tax profit, with revenues at around £533m.

That success continues to be linked to the rise in the wage bill at Anfield, with lucrative bonuses paid out as a reward for their on-field exploits, enough to see wages rise from £310 to £325m in the latest accounts, a figure that puts them behind only Manchester City in the Premier League when it comes to the money paid out on wages to players. City's wage bill currently stands at £351m.

Fenway Sports Group have come under fire for their perceived lack of spend, but their investment in player wages goes some way to explaining their reluctance to break with their model and go big in the market without alleviating the pressure on the wage bill by moving some players on.

The signings of Diogo Jota and Thiago Alcantara won't be included in the accounting figures until next years, for the year ending May 2021, while there could well be further rises in the wage bill into next year as a result of incentivised contracts and bonus payments for winning the Premier League, which concluded outside of the accounting period for the latest statement.

Takumi Minamino was the only notable addition during the 12 month reporting period, while Joel Matip, James Milner and Divock Origi all penned contract extensions at Anfield, pointing to bonus payments being the main driving force for the rise in the wage bill.

Since 2015, Liverpool's wage bill has shot up by 95 per cent, growing at a far steeper rate that the 64 per cent rise in revenues during the same period, with overall revenue standing at £490m for the latest accounts.

In a non-pandemic affected year, Liverpool would have been hoping to have built on the stellar success they enjoyed in the previous reporting period, and they certainly wouldn't have been anticipating a £43m drop in their revenue streams.

But where the wages stand presently, only second to Man City, and with further bonuses linked to the Premier League success to be paid next year, as well as the addition of the likes of Jota and Thiago, there could be a another steep rise to come, while revenue streams will still be shown as a challenge owing to the accounts showing the impact of a full year of the pandemic.