Its funny as the penny is starting to drop for some of their fans, that they are not actually a very sustainably run football club.
That "going concern" thing essentially states the owner can't/wont put the funding in to guarentee the clubs existence if there is a financial shock akin to the season being delayed on its start date. Even West Hams owners provided far better assurances.
I actually though these accounts would be slightly worse (though next years will be a lot worse). FSG taking on the Covid related debt as opposed to LFC has helped cover up to 200m worth of debt so far (so it could have easily been another 50-60m this season onto their loss of nearly 50m in real terms). Their debt is now officially 200m, it will grow substantially more in next years accounts as you have a whole year of Covid as opposed to 2 months. There is also owners debt on top of that that will not be counted, but FSG are owed at least 200m for taking on LFC debt that at this point they don't count but if/when they want to sell it will be factored back in. So you are taling 2-400m worth of debt with thise likely to be 4-600m by the time the next set of accounts are announced.
How have they got into this trouble? Theyve done a Leeds. Warren Buffet also says crashes are good, because its like the tide going out- you get to see who has been swimming with no clothes on. That is very much LFC. When Euro-pounds are converted they have got the 3rd highest wage bill in world football. They are only behind Barcelona (1billion in debt) and City (who have heavy shareholder investment). They are above PSG, Bayern, Manchester United and are completely blowing out the water the likes of Chelsea, Arsenal etc. Chelsea are also massively backed, and they are absolutely miles ahead of them.
It doesn't take a genius to work out, that unless your ownership have huge reserves and a huge willingness to throw good money after bad (which FSG don't) or the business is able to cope with debt levels rising to up to 1bn (which they cant support) something has to give. They are spending well beyond their means and its catching up with them.
Another couple of things to note, from some digging around. The £325m wage bill DOES NOT include bonuses for winning the league, which were paid in July. So any hefty bonus payments will be added to next years accounts (in fairness, these will not be as big as some people suggest, but even if they are the 10% mark, you are looking at £355m wage bill and 2nd only to Barcelona). There is also some concern that some of the increments u.pwards are 1 off payments, but some are increases that then stick in, so tmhey are stuck with that wage moving forwards.
They also lead the way for agents fees, sign on fees etc. None of these get counted as wages, normally put into "other expenses". So in essence the "real" wage value if you added in then premiums they payon both of those is likely to be very close to 400m and amongst the biggest in world football.
It doesnt take into account the Nike deal, but given it was a pandemic the Nike deal will be nowhere near as big as they forecast, and now they are nowhere near the title and not in the CL it won't be moving forward.
In essence not only can they not support that wage spend, but it is highly reckless. It is starting to dawn on a few of the smarter ones, who can read balance sheets and financial statements the level of mess their reckless spending has got them into. The hole idea of "net spend" is ridiculous as well, as it really contributes very little to the running of a football club. Wage spend is far more significant, and like Leeds before they have gambled massively and failed.
As a final aside, selling their players for their intrinsic value (note a lot less than LFC's value and a lot less than their idiotic supporters value) will be very difficult. Salah might have an intrinsic value of say 70-80m, but given the financial difficulties I can't see anyone paying close to that for a 29 year old. The likes of Firmino and Mane, given the wages they are on, they will probably have to accept loan agreements if they were to go after the poor seasons they've both had. VVD has come back from a huge injury so nobody is spending more than they did on him.
So lets enjoy watching this car crash unfold.
This is Champions League money 
and compared to the Europa League money 
