Liverpool’s summer transfer resources have become a little clearer following the publication of the club’s latest annual financial statement.
The Reds posted mixed results on Friday, with the 2023/24 annual figures showing an overall increase in revenue offset by rising administrative costs and falling media income due to a season playing in the Champions League. It means Liverpool posted a pre-tax loss of $72m.
Despite that, the Reds are comfortably within the framework of the Premier League ’s Profit and Sustainability Rules (PSR) which allows a club to lose a maximum of $132m over a three-year period. Given Liverpool made an $10m profit and a $11.3m loss in the previous two years, there are no worries about even coming close to breaching the rules.
What does pose a tad more concern is that the $72m loss will be factored into next summer’s spending. It will essentially mark year one of Liverpool’s PSR picture at the end of the 2025/26 season, meaning it can only make a $60m loss over the following two years.
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That shouldn’t be a problem this season with Liverpool spending the lowest transfer fees in the Premier League in 2024/25 and making an overall profit thanks to the sales of Sepp van den Berg and Fabio Carvalho, plus getting the wages of Adrian, Joel Matip and Thiago off the books last summer.
That in turn, will improve the PSR picture heading into the summer and the club should have rough figures in mind for the current season’s finances when budgeting ahead of Arne Slot's second campaign in charge. It could also be the final season of PSR - which earlier this month the Premier League opted to continue for another year - with Squad Cost Ratio (SCR) rules expected to be implemented at some point.
It goes without saying that player arrivals and sales will change the financial landscape for Liverpool - should Mohamed Salah earn a lucrative new, Darwin Nunez be sold for an exorbitant price or the club secure a new financial partner, then the fees available for transfers will change.
But the return of Champions League football and the added home games (at least five) will provide an immediate income boost compared to last season - as would finishing top of the Premier League.
It’s difficult to get an accurate estimation of the club’s financial figures ahead of the summer, but, while the $72m will definitely enter into Richard Hughes’ thinking during the window, the Reds appear to be in a relatively healthy position.
That said, there were fresh hints in the recently released financial figures that Liverpool still doesn’t feel it can compete with the lavish spending of its rivals in the markets. “Operating a financially sustainable club continues to be our priority,” s aid chief financial officer, Jenny Beacham.
“We will continue to operate in accordance with football’s financial rules and regulations while maintaining investment opportunities in our operations, infrastructure and players,” she added. “Our focus right now is to finish this season as strong as possible, both on and off the pitch, to fulfil our collective ambitions for success.”
That success could also help Liverpool when it comes to attracting signings next summer. Slot might not have to work particularly hard to convince possible arrivals to join a team many consider to be the world’s best at present.
