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Liverpool tipped to make £350m announcement that easily covers Florian Wirtz fee and wages
Liverpool have followed up their Premier League title win with a superb start to the summer transfer window.
The Reds quickly wrapped up the signing of Jeremie Frimpong from Bayer Leverkusen to replace Trent Alexander-Arnold.
In addition, Liverpool received around £10million from Real Madrid to enable him to leave earlier and join up with Los Blancos for the Club World Cup.
Now, Liverpool are closing in on a record-breaking deal for Florian Wirtz for around £127million.
With every Premier League club having to be mindful of PSR, some fans have been asking whether the Florian Wirtz deal will have a huge impact on Liverpool.
Adam Williams, TBR Football’s Head of Football Finance and Governance Content, explains how Liverpool will be more than alright on this front.
Liverpool tipped to have earned around £350m in commercial income for 2024/25
Williams has explained how Liverpool aren’t thought to be anywhere near the three-season financial loss limit of up to £105m until the end of 2025-26 – even when factoring the Wirtz deal in.
Indeed, Williams reckons Liverpool could have earned around £350m in commercial income this season, which would easily cover Wirtz’s transfer fee and wages.
“I’ve seen some questions on social media about how Liverpool are able to afford Florian Wirtz and stay within the PSR threshold,” said Williams.
“In truth, regardless of what happens in the coming season, they’re likely to be nowhere near the three-season financial loss limit of up to £105m until the end of 2025-25, even with the Wirtz fee included.
“Remember, the Wirtz fee will be amortised over five years, so only £25m or so will hit Liverpool’s PSR calculation in 2025-26, plus his annual salary.
“Liverpool wash their own face. FSG have never put any money into the club besides when they cleared the debt in 2010 and, more recently, the funds for the expansion of Anfield.
“They have been entirely self-sufficient and will continue to be so. Commercial revenue is a huge part of that.
“Since FSG bought the club, money from sponsorship, retail and other commercial streams has risen from £62m in 2010 to £308m in 2023-24. We don’t have the figures from 2024-25 yet, but I think it’s entirely possible that it will hit £350m for the season.”
READ MORE: £40m player now edges closer to Liverpool move, as club confident of having secured his replacement
How Liverpool are making the most of pre-season on the commercial front
Williams also explained how Liverpool are making the most of pre-season, with the Reds playing AC Milan in Hong Kong before embarking on their first-ever tour of Japan.
He noted how the Reds have just signed a deal with Japanese streetwear brand in Baycrew, which would likely not have happened were it not for their summer trip to the country.
“Pre-season tours might generate £10m-plus per season on face value, which in the grand scheme of things isn’t that much,” began Williams. “However, the benefits are much more manifold than the fee you get from promoters or the cut of ticket sales.
“Liverpool have just signed with a Japanese streetwear brand in Baycrew, for example. That deal wouldn’t have happened unless Liverpool were heading to Japan during their pre-season tour this summer.
“That event gives them the opportunity to launch and promote the partnership and it will give them a retail boost too.
“There are other harder-to-quantify benefits too. Pre-season tours are as much about customer acquisition and retention as they are the basic fee you get for showing up.
“Clubs are focusing on customer acquisition – creating new fans, in layman’s terms – on a global basis because it’s much cheaper to do so outside the UK, where everyone already has a team.
“On top of that, the tour gives you the chance to introduce new signings like Wirtz and nurture the existing support you have in these regions.
“Liverpool have an uber-sophisticated commercial strategy. And make no mistake, FSG’s self-sufficient model means they wouldn’t be able to afford the likes of Wirtz if they were underperforming in this department.”