Liverpool chiefs are bracing themselves for a £42 million hit to operating profits as a result of steep drops in matchday income and broadcasting revenues due to covid.

According to a new market-leading report, Liverpool is set for a £42 million blow as a result of the Coronavirus outbreak. Moreover, the Reds will publish their financial reports in the coming months after a glittering 2020 that saw them and their 30-year wait for a league title in style.

But Jurgen Klopp is still yet to celebrate the triumph with his side’s fans, as the Covid-19 outbreak has sent the country into numerous lockdowns and taken a huge financial toll and Premier League clubs.

Liverpool’s rivals Manchester United suffered a huge revenue hit, while Tottenham announced massive losses and warned of further “irrecoverable” blows in 2021.

The lack of matchday income across the league means Liverpool are set to share in the hard-hitting financial impact of coronavirus.

Accounting and consultancy firm KPMG has assembled a report which will make for bleak reading for Anfield chiefs.

Assessing the finances of six league champions across Europe, KPMG found Liverpool’s operating profit down €47.6million (£42.1m) – an eight percent drop on a total figure of €557million (£502m).

Given Liverpool are yet to publish their financial statements, KPMG obtained the figures from the club’s hierarchy. They found the Reds’ operating profit to be made up of €82.5million (£74.5m) matchday revenue, €231.9million (£209.5million) broadcasting revenue, and €242.6million (£219m) commercial and other revenue streams.

Operating profit refers to the club’s income subtract the day-to-day running costs of the business before tax.

The other teams investigated by KPMG were Real Madrid, Paris Saint-Germain, Bayern Munich, Juventus, and Porto, with some of these clubs already releasing their financial figures.

Portuguese champions Porto were by far the hardest hit by the pandemic, with an eye-watering 50 percent drop in operating profit. Ligue 1’s PSG and Serie A’s Juventus saw 15 percent and 13 percent drops respectively.

Four of the six clubs saw their biggest slumps come in matchday revenue, but Liverpool and Porto have been hit hardest by a decrease in broadcasting revenue.

For the Reds, this was attributed to their failure to progress from the Champions League last 16, while Porto was eliminated in the pre-group stage qualifying rounds.

Andrea Sartori, KPMG’s Global Head of Sports, said: “While recent pre-COVID-19 seasons demonstrated constant and stable growth for almost all the champions of Europe’s top leagues, the past season has been distressing for all, albeit to various extents.

“The coronavirus crisis has questioned the financial sustainability of the football ecosystem as a whole and further exposed its fragility”.

“Even prior to the pandemic, inflated players’ salary, coupled with growing transfer and agent fees, placed a significant strain on clubs’ finances. The crisis has magnified these flaws in the current business model.

“Football clubs suddenly had to deal with liquidity concerns with all of their income streams affected by the absence of gate receipts, in addition to the renegotiation, suspension or cancellation of payments from media and commercial agreements.”