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The Premier League champions have been flexing their muscles financially.

The British record signing of 22-year-old German ace Florian Wirtz from Bayer Leverkusen for a £116m sum, the signing of another Leverkusen player in right back Jeremie Frimpong for £29.6m, and the soon-to-be new left back of Milos Kerkez from Bournemouth for £40m means the club’s outlay so far this summer stands at £185.6m.

The Reds are likely not done in this window, especially given the impending exit of Jarell Quansah and potential departure of Darwin Nunez, but they still have plenty of financial flexibility to work with if they do choose to enter into the market again before the start of next season.



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Liverpool’s aggressive spending so far in the window has see some questions raised around just how the Reds are able to afford all of this, especially if they follow up on interest in the likes of Marc Guehi and Alexander Isak.

The reason is very simple.

Liverpool’s amortisation stood at £114.5m, but even with the added Chiesa impact, the sales of players who held book value, and the annual decline in book value on some squad members, means that the actual cost will likely have fallen for the last financial year.

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It was a financial year when the Reds were back in the Champions League, banking more than £85m for their trip to the last 16 thanks to a superb league phase, greater broadcast sums and attributed matchday revenue, with five home games.

Add into that the fact they won the Premier League, delivering merit payments, equal share payments and facilities fees from both domestic and international markets that will be around the £185m mark and you can see the financial confidence.

The wage bill will be going up due to new deals and bonus payments for Premier League success, and that could soon breach the £400m mark.

They haven’t been active participants in each and every window, and that has allowed them to what some of their rivals have not been able to do.

Only Manchester City and Arsenal could have made a Wirtz deal work this summer when it comes to the Premier League, taking into account PSR positions and transfer debt that already needs to be serviced.

Premier League clubs can lose £105m over a three-year period, with allowable deductions for investment in infrastructure, the academy, the womens team and community initiatives.

The period from 2021/22 to 2023/24 saw the Reds post a profit of £7m, a loss of £9m and a loss of £57m for the last three years.

They had absolutely no worries.

The 2024/25 period is likely to see Liverpool swing back to profit with revenues almost certain to be above £700m.

Factoring such a profit into the three-year cycle from 2022/23 to 2024/25, assuming similar allowable deductions, would see that net positive PSR position grow even further, up to some £100m before taking into account the £105m figure that is permitted.

Amortising the £185.6m over five years will add £37.1m to their amortisation costs, but those costs will have decreased anyway.

The signing of Giorgi Mamardashvili last summer, which counts for this year, of £25m, will add another £5m in amortisation costs.

The club are making the moves to solidify their position coming off their title win, looking to ensure that they follow up success and don’t miss out on Champions League football for the years to come, something which was chiefly responsible for the losses seen in 2023/24 when the club spent a campaign in the Europa League.

Liverpool’s amortisation costs are more than £90m lower than Chelsea’s.
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