Liverpool: The Giant Awakens with Stellar Signings
Liverpool’s fans made their desire clear. After the vibrant 3-2 victory over Newcastle United, the visiting supporters clamored to “give” a key player. That “him” was Alexander Isak, Newcastle’s forward. A week after that dramatic triumph, Liverpool fans saw their wish fulfilled. Isak sealed a British record transfer of 125 million pounds (169 million dollars) on the last day of the market.This astronomical figure comes in a summer in which the Premier League champions have exhibited their financial power like no other club in the world. Midfielder Florian Wirtz, who arrived from Bayer Leverkusen for 100 million pounds, a figure that could rise to 116 million with add-ons, has not yet debuted and has already been surpassed as the club’s record signing. Liverpool’s total spending this summer is around 450 million pounds, including add-ons.
- Transfer analysis: Liverpool and Arsenal, market winners; Newcastle, the biggest loser.
- The worst transfers of the summer of 2025: from Cunha to Isak, moves that could fail.
- Transfer ratings: Liverpool gets a B- for the record signing of Isak.
Liverpool’s Smart Financial Strategy
The first sign that this wouldn’t be an ordinary summer for Liverpool came in April. After signing a two-year contract extension at Anfield, Mohamed Salah was asked by the club’s media whether he felt his team was ready to continue competing for major honors.The following week, captain Virgil van Dijk sent a message to the owners of the Fenway Sports Group before signing his own contract extension.If I didn’t believe in that, I wouldn’t have signed.
Mohamed Salah
While Salah and Van Dijk surely wouldn’t have imagined that their trust in the club’s hierarchy would be so emphatically rewarded, it’s logical that both players, who are still at the peak of their careers, committed their futures to Liverpool because they received guarantees that their loyalty would be rewarded with a significant display of ambition in the transfer market. Externally, it might seem that Liverpool has deviated from its traditional policy of cautious spending. However, years of smart financial planning have allowed the club to take off the handbrake this summer. According to Dave Powell, Reach PLC’s head of football business, the explanation for Liverpool’s ability to invest so much in Alexander Isak, and in the transfer market in general this summer, is quite simple. They have built a base where their income is among the largest in world football and have reached a summer where they can trade players effectively. Did you know they could face this summer after a solid 2024-25 season, in which they obtained nearly 90 million pounds from the Champions League, including matchday revenue, and obtained additional funds for winning the Premier League. It will be an exceptional year for the Reds and one in which they will likely profit again. Revenue is expected to exceed 700 million pounds for the first time.I believe Liverpool should be able to fight for titles in the coming years. Whatever happens in terms of players leaving, players arriving, I think it should be a great summer. I think [FSG] is planning for it to be a great summer, so we all have to trust the board, as a Liverpool-connected fan, to do the right job.
Virgil van Dijk
While teams like Arsenal, Manchester City, and Chelsea have been active in the last two transfer windows, Liverpool’s only addition last summer was forward Federico Chiesa, for an initial fee of £10 million. In each of the previous two summers, Liverpool chose not to pursue expensive alternatives after missing out on their primary targets in midfield (Moisés Caicedo in 2023; Martín Zubimendi in 2024). That patience, it seems, has been rewarded.
Powell explains that Premier League clubs can lose £105 million over a three-year period, with deductions allowed for investment in infrastructure, the youth academy, the women’s team, and community initiatives. The period from 2021-22 to 2023-24 saw the Reds record a profit of £7 million, a loss of £9 million, and a loss of £57 million in the last three years. In terms of permitted deductions during that period, the club had £33 million, £35 million, and £39 million; that means the club had a positive PSR position of £48 million, which, added to the £105 million allowed, means it had a margin of £153 million. They had no concerns. Given that we are now in the 2025-26 cycle for PSR, the Reds could lose over £200m and still comply. They won’t, and that doesn’t take into account player departures they’ve made this summer, many of whom have been home-grown, meaning guaranteed sums are pure profit, as there is no book value in the accounts that needs to be settled before the accounting profit is made.
Is there a spending limit for Liverpool?
Liverpool’s critics will point to the fact that this summer’s spending spree is at odds with comments made by former Liverpool manager Jurgen Klopp, when, ahead of his team’s clash with Manchester City in October 2022, he admitted that his team could not compete with the financial might of their rivals, the majority of whom are owned by Sheikh Mansour, the vice president of the United Arab Emirates.Klopp also lashed out at Newcastle following their acquisition by Saudi Arabia’s Public Investment Fund, stating that there was no “ceiling” for the club’s spending. But almost three years later, those of Newcastle’s persuasion would be justified in feeling that it is Liverpool, along with the other traditional big six, whose ceiling is much higher due to their historical commercial success. For Liverpool, however, there is a feeling that this summer has offered the opportunity to lay the foundations for a dynasty. While remaining compliant with regulations, the Premier League champions have assembled a squad with the quality needed to compete for the biggest prizes in the game, not just this season, but for the foreseeable future.Nobody can compete with City. You have the best team in the world and you put the best striker on the market. Whatever it costs, you do it. City won’t like it, nobody will like it, but you already know the answer. What does Liverpool do? We can’t act like them. It’s not possible. It’s not possible.
Jurgen Klopp
The Pressure to “Win” the Transfer Market
For the first time, Liverpool has “won” the transfer market. With the exception of Crystal Palace defender Marc Guéhi, whose transfer for 35 million pounds fell through when Palace pulled out of the deal at the last moment, they got all their main targets, all of whom still have their best years ahead of them. (Isak is 25 years old, Wirtz 22, Hugo Ekitiké 23, Jeremie Frimpong 24 and Milos Kerkez only 21. Defender Giovanni Leoni, a longer-term prospect, turned 18 in December.)
Of course, market success doesn’t always translate into success on the pitch. Chelsea have spent over £2 billion in recent years under Todd Boehly’s ownership, but sometimes that has posed more problems than solutions. Even with all the additions, this Liverpool team is not infallible. Despite winning their first three games of the season, Slot’s team has sometimes looked unconvincing, especially in defense, and it will take time for the squad to gel after a summer of so many changes. Even so, Slot has never subscribed to the idea that Liverpool is a team of losers and will not be under any illusions about the expectation that his team will perform this season.For Liverpool’s owners, FSG, who were previously criticized by some fans for their supposed lack of investment, this summer reaffirms their commitment to the club they considered selling in 2022. However, that investment is not without risks. Powell claims that the money that has come back through the door means that Liverpool could well make a profit despite their heavy spending, but the flip side is that there is risk. The club needs to be part of the Champions League elite and do well in the competition for the big money to keep flowing to support spending, and it needs to remain a dominant player in the Premier League for big brands to keep wanting to align themselves with the Reds. Such spending is not without risks, but in a high-stakes game like elite European football, Liverpool will feel that this summer’s investment is about consolidating and strengthening their position on the field so that they can do more important things off it. It goes hand in hand for FSG. By breaking records to sign Isak this summer, Liverpool has further strengthened its position as the team to beat in the Premier League this season. But after spending so much, the champions will expect this to yield immediate rewards.We are Liverpool, the pressure is always there. Even if we bring in 10 players or none, there is always pressure when you put on a Liverpool shirt.
Slot
