Liverpool have reported a record revenue in its annual accounts for the year ending May 31, 2016, but a pre-tax loss of almost £20 million.
After reporting profits for the past two years, the club announced a loss according to the club's official accounts, released on Wednesday.
The overall revenue of the club, which has grown every year since Fenway Sports Group took ownership back in October 2010, increased by £3.9m to £301.8m up from £297.9m the previous year when the club posted a £60m profit in the main thanks to the £75m sale of Luis Suarez to Barcelona.
Liverpool maintain ninth position in the Deloitte Football Money League -- the only club in the top 10 that did not feature in the Champions League last season.
However, the loss before tax was recorded at £19.8m, which the club state was "mainly as a result of further investment and turnover in the first-team squad" after the sacking of Brendan Rodgers, appointment of Jurgen Klopp and the recruitment of 12 new players, including Roberto Firmino, Christian Benteke, James Milner, Marko Grujic, Danny Ings, Nathaniel Clyne and Joe Gomez.
The sale of Raheem Sterling to Manchester City in a £49m deal was also in the same accounting period.
While media and matchday revenue increased, the club say the decrease in commercial revenue -- down £0.7m to £115.7m -- was due to the redevelopment of the Main Stand.
Andy Hughes, chief operating officer for the club, said: "These results demonstrate the solid financial progress that's been made over the past six years under the leadership of FSG with continued investment in the playing squad and the completion of the main stand.
"The increase in the underlying revenue adds further strength to the club's financial position despite the cost of football rising with player transfer fees, wages and agents' costs.
"During this reporting period, we also agreed a new five-year credit facility, which further secures the club's long-term financial stability.
"All three main revenue streams continue to show strength and commercial revenues held firm irrespective of the impact of the Main Stand at Anfield."
Hughes added: "Since this reporting period, which is nearly a year ago, we have continued to make solid financial progress and we expect to see further growth in our revenues following the successful opening of the Main Stand and the new media deal.
"Our commercial operations continue to thrive through new partnerships, global retail growth and developing our international soccer schools, with our newest Academy opening recently in Australia.
"Being able to connect directly with supporters around the world is extremely important and a key part of our digital strategy. We continue to see more and more supporters joining our channels and we are approaching seven million followers on our global Twitter account.
"The investments from this ownership have been a key factor to our financial and global progress. We have seen continued investment in the playing squad; the expanded Main Stand; the new flagship retail store opening later this year; fully refurbished retail stores in Liverpool and Belfast; and we are consulting on a proposed development at our academy in Kirkby to bring together the first team and our young players.
"These investments all contribute to further progress and strengthen the club's financial position which ultimately serves to support all of our football ambitions."