Liverpool have already spent £265m this summer, but with Arne Slot’s squad overhaul ongoing, they are now being strongly linked with a £120m move for Newcastle’s Alexander Isak. The key to affording such a fee lies in amortisation and the book value of sales.
Under PSR rules, clubs must limit losses to £105m over three years. Liverpool’s spending is spread over contract lengths—up to five years—meaning the annual cost of a £120m signing would be £24m. Combined with their other deals, the total amortised cost so far is about £53m per year.
The sales of academy graduates Trent Alexander-Arnold, Caoimhin Kelleher, and Jarell Quansah for a combined £61.5m have provided “pure profit,” as their book value is zero. This offsets the new spending, and further departures—such as Federico Chiesa, Darwin Núñez, or Harvey Elliott—could balance the books for future seasons.
Liverpool’s financial position is further strengthened by rising revenue. Projections show income exceeding £700m for the latest financial year, boosted by their Premier League title win, Champions League progress, TV money, and expanded Anfield. A new TV rights cycle starting next month will add more.
With revenue growth and strategic sales, Liverpool could sign Isak and potentially still add another player, such as Crystal Palace’s Marc Guehi, without breaching PSR constraints.
