Liverpool Football Club’s Strategic (PESTLE) Analysis


The European government has established a ceiling price on football tickets, causing their cost to increase by two times more than the Consumer Price Index. Subsequently, each Liverpool FC ticket costs between £165 and £185 (Millar et al., 2021). Liverpool management has frozen the prices for nearly seven years to ensure their fans can afford the games (Millar et al., 2021). Ukraine and Russia’s conflict could exacerbate global war, hindering sports activities.


The war between Ukraine and Russia has caused fuel prices to rise, increasing the cost of living. The European inflation rate is nearly 7.5% from its previous 5.9% recently (Millar et al., 2021). Liverpool FC’s expenditure is likely to increase due to salary increments and overhead costs. The British Pound has been declining over the years in comparison to the Dollar. During the nineteenth century, the British Pound was five times worth more than the Dollar, but currently, it is less than two Dollars (Millar et al., 2021). The currency’s diminishing strength causes investors to opt to invest in Dollars, limiting the club’s capacity to access funding.


The global economy is recovering rapidly from the Covid-19 adverse effects, widening consumer engagement in football matches. Liverpool has more tourists streaming into its squares, and it is among the top five most frequented cities in Europe (Millar et al., 2021). Lifting of Movement restrictions in adherence to the Covid-19 protocol has enabled people to access areas they would not previously like the stadium. Social media platforms enhance consumers’ connectivity and help the football club get the necessary input for product improvement.


The world has become a global village with the advent of social media. Twitter, Instagram, and Facebook, among other platforms, enable a firm to communicate with its clients and promote its products. 5G network connectivity is slowly cropping in every nation, allowing football fans to stream matches uninterruptedly (Millar et al., 2021). The decrease in the price of smartphones has increased their access, making it convenient for fans to stream matches without necessarily using personal computers. As a result, the number of online streaming has risen steadily.

The UEFA and FA have set the Financial Fair Play (FFP) regulations that govern football clubs within their jurisdiction to promote their long-term feasibility. Numerous clubs have gone bankrupt due to mismanagement of resources and the high salaries they pay their players (Millar et al., 2021). The FFP provides the maximum wages that a football can pay its players. Copyrighting is another important legal issue, especially in the digital viewing of matches (Millar et al., 2021). The legal rights ensure that the Premier League maximizes its income by selling the right to broadcast the games to television networks.


Liverpool City has been facing financial woes due to the Covid-19 pandemic. Municipal leaders embraced privatization to keep the city afloat and formulated obligatory buying orders in Anfield (Millar et al., 2021). Liverpool football club has to enlarge its stadium to make productive use of the areas left unutilized by the failed housing projects (Millar et al., 2021). Sports have been an avenue for promoting the green movement by adopting sustainable practices. The cups, plates, and decorating materials used in the stadium should be recyclable and biodegradable.


Liverpool FC must understand various factors influencing its performance to formulate sustainable and competitive strategies. Governments can affect ticket prices by setting caps and policies that clubs must meet. Vaccines and cures for Covid-19 infections have opened the economy, and businesses will pick up in due time. Football clubs require regulations to safeguard them from insolvency and huge losses. Firms can enhance environmental conservation by adopting sustainable packaging materials.


Millar, S. R., Power, M. J., Widdop, P., Parnell, D., & Carr, J. (2021). Football and popular culture: Singing out from the stands. Routledge.