A renowned football finance expert has outlined why Liverpool would still have the scope to break their transfer record for the second time this summer.
The Reds have already surpassed the £170m mark with their spending in this window, the bulk of which went on the £116m acquisition of Florian Wirtz.
Even with that enormous outlay, they’ve made an approach to sign Newcastle striker Alexander Isak (as reported by David Ornstein), with Fabrizio Romano claiming that the Reds are ‘ready to offer’ £120m for the Sweden international.
Maguire: ‘Super smart’ Liverpool have no worries with PSR
Football finance expert Kieran Maguire has explained how Liverpool could afford to sign the 25-year-old this summer despite their considerable expenditure in the current transfer window and still avoid any concerns regarding profitability and sustainability rules (PSR).
He told BBC Sport: “Liverpool are a super smart football club. They’re in an incredibly strong PSR position. Out of the traditional big six clubs, they’ve spent the least in this three-year cycle – only £325m – and that includes their signing of Florian Wirtz.
“They’ve still got plenty of wiggle room with their transfer budget. Plus, a move for a striker is likely to be paid in instalments, meaning the cost can be spread over multiple seasons.
“Liverpool have been outside the top 10 spenders on player signings since 2019, but their model is a classic case of being smarter rather than bigger. Liverpool’s model has been to ignore the noise and only buy a player if they truly improve the squad. It’s a Moneyball, external, more analytical approach.
“Chief executive Michael Edwards does a brilliant job and he never buys players because of external pressure. He doesn’t get jittery when fans call for more signings.
“Wirtz, Milos Kerkez, Jeremie Frimpong and potentially Isak are big signings, but they all improve the Liverpool squad, and the Reds do have an awful lot of PSR headroom.”
Liverpool have struck the ideal balance in the market under FSG
As per BBC Sport, Liverpool have a net spend of just under £125m over the last three years, compared to £442m for Manchester United in the same period.
They’ve also had substantial boosts in income over the past 12 months, receiving £175m for winning the Premier League and reaping the benefit of a full season with Anfield at an expanded 61,000 capacity, and they’re about to enter a money-spinning kit deal with Adidas.
FSG have come in for criticism from many Reds supporters in the past for their perceived frugality, but in truth they’ve managed the club sensibly while not being afraid to roll the dice financially when they believe that it’s warranted, with the nine-figure outlay on Wirtz being a prime example.
Also, as Maguire pointed out, the ability to sign Isak for £120m+ and pay that to Newcastle in instalments would help to balance out that investment over several accounting periods, thus enabling Liverpool to keep on the right side of PSR.
The possibility of player sales would provide a further top-up to the Reds’ bank balance and even more scope to absorb significant spending without straying into dangerous territory.
Rival fans on social media are already spitting fire over the potential capture of Isak, labelling unfair accusations of ‘chequebook manager’ at Arne Slot, but in reality LFC could be rewarded for their astute financial management under FSG’s stewardship if they pull off the signing of the Swedish striker this summer.
