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

Liverpool have arguably been Man City’s nemesis in their era of dominance over the last decade or so, with FSG denied titles with points totals that would ordinarily have been more than enough.

This season, the tables have turned. Liverpool are two points clear atop the Premier League with a game in hand over 2nd-place Chelsea, and nine points clear of Man City in 5th, who have also played one more.

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

Richard Hughes and Arne Slotꦑ, who has bucked the managerial trend in football by succeeding a club legend without the club falling into chaos, is doing so with a much more modest budget than their peers.

🅠In the last financial year on record, 2022-23, Liverpool’s squad cost – annual wage bill plus the amortisation of new signings – was £480m.

🍸A huge figure in isolation, yes, but smaller than Chelsea and the two Manchester clubs. These are official figures, taken from club accounts.

❀Granted, amortisation (how clubs account for the cost of new signings over a period of time) is projected to have risen by the time they release their 2023-24 accounts.

But that will be more than offset by a decline in their wage bill, as projected by football finance expert .

ꦗChelsea’s squad cost will rise thanks to their extraordinary spending under Todd Boehly and Clearlake. City’s, as confirmed in their recently published accounts, has fallen only slightly.

🐼Man United’s squad cost meanwhile is falling, but that is a reflection of the brutal cost-cutting regime implemented by Sir Jim Ratcliffe, which is a response to years of overpaying and underperformance.

So, Liverpool are something of an outlier.

Fenway Sports Group (FSG)🐽, Liverpool’s owners since 2010, are experts in cost control and want their club to be entirely self-sufficient.

𓄧That is partly why they have been so hesitant to give an aging yet still brilliant Mohamed Salah a new long-term deal.

𝓡They are conscious of the risks that come with his inevitable depreciation in value, even if for most Liverpool fans it is a no-brainer given his stunning output this season.

Elsewhere, 🐠FSG offered Juan Soto what would have been a world-record contract for the Boston Red Sox, their MLB franchise.

♏But they are more conservative in football because, unlike US franchise sport, the game is far more volatile financially.

To understand FSG’s player trading strategy, TBR Football spoke to Liverpool University football finance🤡 lecturer Kieran Maguire, who is well connected in the industry.

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

FSG are the ultimate player traders, says finance expert

“The stories you hear from those who work in finance close to Liverpool are fascinating,” said Maguire.

It is well known within football, TBRܫ understands, that FSG have software that track player value over time, relative to their performance on the pitch and the complexities of their contracts.

“Liverpool’s attention to detail in terms of observing and creating value may mean they might appear not to be the biggest of spenders, but you can argue they are the smartest of spenders at that level.

“They make very few mistakes and they have a very successful out-door in terms of player sale profits.“

It’s hard to argue against that logic.

🦩Many fans were in uproar in the summer when Liverpool had one of the lowest net spends in the Premier League, but the league table suggests that not rocking the boat post-Jurgen Klopp was the right move.

“We have seen Man City’s financial results and they show that player sale profits can convert an operation loss into a big pre-tax profit.

“Fans are frustrated because FSG get their business done with a minimum of fuss. But look at the results on the pitch.

“They’re prepared to spend big when it comes to the spine of the team, but they’ll spend big when it’s right.

“They don’t do it to appease the media, they do it because they want to enhance the overall value of the squad.”

⛎Man City’s latest accounts, which document the 2023-24 season, show Premier League-record revenue of £715m and a profit of £76.5m.

🐠However, if it wasn’t for player trading profit, they reigning four-time champions would have ended the year in the red.

• READ MORE: ♑FSG are sitting on ‘goldmine’ from Jurgen Klopp exit as £50m Liverpool deal is key

What is the latest with Mohamed Salah’s contract?

ဣIt is a measure of just how highly regarded Salah is at Liverpool that the contract predicaments of Trent Alexander-Arnold and Virgil van Dijk, two bona fide Anfield legends, haven’t got nearly as much attention.

🍬Like that pair, Salah is just weeks away from being able to sign pre-contract terms with an overseas club.

🀅At this stage, there is no indication that he is set to do so, but the impasse between the Egyptian king and FSG has not yet been broken.

ಌThis week, there have been some tentative suggestions in the media that there has been some progress in talks, although nothing concrete at this stage.

🍌One detail that could be interesting is that, from 2025-26, Liverpool are set to sign with Adidas, Salah’s biggest sponsor.

🌱This is significant. It is these sorts of endorsements that lead to Salah’s £350,000-a-week Liverpool salary being topped up to £1m all told.

𝓀Having one of Adidas’s biggest poster boys would have been leverage that FSG have used in negotiations with the German sportswear giants, which in turn increases the likelihood of his demands being met.