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The truth about FSG not giving Luis Diaz a new Liverpool contract because of FFP

Adam Williams

Thu 19 December 2024 19:00, UK

With Trent Alexander-Arnold, Mohamed Salah and Virgil van Dijk’s still in contract purgatory, a new deal for Luis Diaz ought to be the least of FSG and Liverpool fans’ worries.

The trio, each bona fide Liverpool legends in their own rights, are all out of contract in the summer and, in less than two weeks time, will be allowed to negotiate pre-contract terms with overseas clubs.

The saga has prompted some soul searching for Fenway Sports Group (FSG), Liverpool’s Boston-based owners whose sports empire is worth over £15bn.

In Salah’s case, FSG appear to have backed down in the face of pressure from fans, with the owners having opened talks with the Egyptian king despite reservations about his age.

That is by no means a done deal, but the situation looks far more positive than it did just a few weeks ago when Salah was saying he was yet to have even received a formal proposal.

Incidentally, Van Dijk is also believed to have now been presented with an offer, while the situation involving Alexander-Arnold – who is being courted by Real Madrid – is less clear.

Whatever the outcome of the trio’s respective contract talks, the episode has thrown light on FSG’s model, which gravitates around value – obtaining it, retaining it, and cashing it in.

Their considered, data-led approach is undeniably frustrating for fans, but it is hard to argue that FSGism been successful relative to what some of their rivals have spent to secure the glory that they have.

As Liverpool University football finance expert Kieran Maguire told TBR Football earlier this year, “no owners do more forensic analysis” than FSG.

Why? Because they want to be a self-sufficient business first and a trophy-winning football club second.

This season, they might be both, thanks to the performances of Luis Diaz among other members of Arne Slot’s expectation-defying Liverpool squad.

• READ MORE: Liverpool ‘prepared to spend big’ on one condition as FSG expert outlines £76.5m Man City vision

If Luis Diaz isn’t offered a new Liverpool deal, it won’t be because of FFP

Diaz has been central to Liverpool’s success on the pitch so far in 2024-25, with the most goal contributions after Mohamed Salah.

So it sent alarm bells ringing when reports in the attacker’s native Colombia said he had rejected a low-ball contract offer, even if his current deal doesn’t expire until 2027.

When it emerged that Diaz now effectively has a new agent thanks to the formation of a new super agency, As1, that subsumed his previous intermediary, Raul Costa’s Nomi Sports.

It has been tentatively reported in recent months that the likes of Barcelona, Paris Saint-Germain and AC Milan are eyeing the 27-year-old.

Now, Spanish publication has, in reports relayed by several UK outlets, claimed FSG are reluctant to commit to a bumper new deal for Diaz because of their “delicate situation with financial fair play.”

However, even a cursory glance at Liverpool’s accounts shows that their situation under FFP, now called Profit and Sustainability Rules (PSR) is anything but delicate.

In fact, they have more PSR headroom than almost every other club in the Premier League and throughout Europe, and certainly more than PSG, Milan and Barcelona.

They lost a modest £15m in 2022-23, the last year for which financial data is available. They are expected to be in the red again when they release their 2023-24 accounts, but not by a large amount.

In recent years, they have been one of few teams that have consistently broken even, giving them an advantage in terms of PSR, which limits clubs losses to £105m over a rolling three-year period.

FSG’s cost control meanwhile might draw criticism from fans keen to see more ambition displayed at Liverpool, but it means the club have plenty of room for manoeuvre under UEFA’s squad cost rules too.

If Diaz does not sign a new Liverpool deal, it is not because of PSR. That can be said with complete confidence.

• READ MORE: How much Mohamed Salah will earn every week if he does sign new Liverpool contract

Do Arne Slot and Liverpool have funds to spend in January?

Liverpool certainly have breathing space in terms of PSR, but whether FSG are willing to finance additions in January is a separate consideration.

However, FSG have the liquidity and, given the situation they find themselves in, with a lead that even the most optimistic Red would not have predicted in August, they would be smart to capitalise.

Position	Team	Played MP	Won W	Drawn D	Lost L	For GF	Against GA	Diff GD	Points Pts
1	LiverpoolLiverpool	15	11	3	1	31	13	18	36
2	ChelseaChelsea	16	10	4	2	37	19	18	34
3	ArsenalArsenal	16	8	6	2	29	15	14	30
4	Nottm ForestNottingham Forest	16	8	4	4	21	19	2	28
5	Man CityManchester City	16	8	3	5	28	23	5	27
6	B’mouthBournemouth	16	7	4	5	24	21	3	25

The Salah, Alexander-Arnold and Van Dijk situations will not have a huge net impact on PSR this season, even if all three strike deals with pay rises.

Liverpool have been linked with new signings, albeit not blockbuster ones.

As always with FSG, the focus will be on value.

They want to strike the right deals at the right, not fall into the trap that clubs so often do in January and overpay for players who might deliver a short-term boost but, as long-term assets, are sub-par.