How did Liverpool afford their £400m summer of spending?

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Midfielder Florian Wirtz -- who joined from Bayer Leverkusen in a £100m deal that could rise to £116m with add-ons back in June -- has barely kicked a ball in anger and yet has already been usurped as the club's record signing, while Liverpool's total expenditure this summer sits at around £450m, inclusive of add-ons.

In a landscape where clubs live and die by their compliance with financial rules, both domestically (Profit and Sustaintability Rules, or PSR) and in Europe (Financial Fair Play), there will understandably be confusion in some quarters about Liverpool's ability to spend so freely this summer.

Only Chelsea have spent more in a single transfer window (almost £600m in 2022-23), and yet Liverpool are not in danger of breaching either the Premier League or UEFA's financial regulations.



So how have they done it?

- Tighe: Liverpool, Arsenal win transfer window; Newcastle biggest losers
- O'Hanlon: Worst 2025 summer transfers: From Cunha to Isak, moves that might fail
- Transfer Grades: Liverpool get a B- for £125m record Isak move

Liverpool's shrewd financial planning set the stageAlexander Isak arrived for a British record £125m fee. Nikki Dyer - LFC/Liverpool FC via Getty Images

The first indication that this would be no ordinary summer for Liverpool arrived back in April.

I think (FSG) are planning to make it a big summer, so we all have to trust the board, as a Liverpool-connected fan, to do the right job."

While Salah and Van Dijk would surely not have imagined their trust in the club's hierarchy would be repaid so emphatically, it stands to reason that both players -- who are still at the very peak of their powers -- committed their futures to Liverpool because they had received assurances their loyalty would be rewarded with a significant show of ambition in the transfer market.

Externally, it might appear that Liverpool have strayed from their traditional policy of spending cautiously; however, years of shrewd financial planning have enabled the club to really take the handbrake off this summer.

"The explanation for Liverpool being able to go so big on Alexander Isak, and in the transfer market in general this summer, is pretty simple," Dave Powell, Chief Business of Football Writer for Reach PLC, tells ESPN.

Revenues are expected to top £700m for the very first time."

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With record revenues having broadened the parameters of Liverpool's financial capabilities, the club's impressive track record of recouping significant fees for departing players has also afforded them further headroom in terms of the Premier League's profit and sustainability rules (PSR).

The exits of first-team stars such as Luis Díaz, Darwin Núñez and Jarell Quansah helped generate around £260m this summer, inclusive of add-ons.

While still abiding by the rules, the Premier League champions have assembled a squad with the quality to challenge for the game's biggest prizes not just this season, but for the foreseeable future.

Pressure is on after 'winning' the transfer windowplay1:45

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Don Hutchison discusses Alexander Isak and Yoane Wissa's lack of professionalism by refusing to play and train for their respective clubs when trying to move clubs.

For perhaps the first time ever, Liverpool have 'won' the transfer window.

"The club needs to be part of the Champions League elite and do well in the competition to keep the big money rolling in to support spending, and they need to keep being a dominant player in the Premier League to keep big brands wanting to align themselves with the Reds.

"Such spending doesn't come without an element of risk, but in such a high stakes game as elite European football, Liverpool will feel that the investment this summer is about solidifying and strengthening their position on the field so that they can do bigger things off it