Liverpool are projected to make an official £121m transfer announcement, the latest analysis suggests.
Liverpool’s revenue has soared under owners Fenway Sports Group, from less than £200m in the first year of their ownership to nearly £600m last seasons.
That remarkable rise is in thanks part to the increase in Premier League media rights but also FSG‘s growth of commercial and matchday income streams.
Those two sources were worth a combined total of £352m to Liverpool at the last count.
New research from Sports Business Institute Barcelona also shows that Liverpool have more diversified income than any of the other ‘Big Six’ clubs.
Essentially, that means the Reds are less reliant on their ‘big three’ sponsors – kit manufacturer Nike, front-of-shirt sponsor Standard Chartered and sleeve partner Expedia – than any of their peers.
John Henry‘s emphasis on sustainable growth has meant that Liverpool have been required to increase revenue before accelerating spending in the transfer market.
And the latest forecast from one football finance experts illustrates the scale of Liverpool‘s spending in recent years.
Liverpool to announce £121m in player amortisation
In a superb in-depth analysis of Liverpool’s financial landscape, finance expert Gregg Cordell has projected the figures the club will reveal when the time comes to officially release their 2023-24 accounts.
According to Cordell’s analysis, Liverpool will announce player amortisation costs of £121.1m for last season, which is up from £107.5m.
Amortisation refers to the process of spreading the cost of a player’s transfer fee over the length of their contract for accounting purposes.
Liverpool’s annual amortisation cost is also the figure that Liverpool will show the Premier League when it comes to their PSR calculation.
At £121.1m, that figure is also the second highest amortisation bill Liverpool have registered in their history.
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TBR Analysis: Do Liverpool have PSR issues?
Liverpool are one of only a handful of clubs to have posted only small losses in the last three years years.
In any case, a large chunk of their expenses over that period will be PSR-deductible.
Liverpool therefore have more PSR headroom than almost every other team in the Premier League, meaning FSG could theoretically sanction huge spending this summer.
However, Arne Slot should not get his hopes up just yet as that would require the Boston-based investment group to bankroll the losses, which would be atypical for them.