Xia Chuanghao spent more than 400 million pounds! TA: Liverpool’s financial situation is far more stable than it appears on the surface

October 13th TA reported that although Liverpool spent more than 400 million pounds on signings in the summer window, its financial situation is far more stable and complex than the superficial figures appear.

First of all, the club recovered approximately 200 million pounds through the sale of players (including Luis Dias and Nunez). Since the profits from player sales are immediately recorded in the accounts, this greatly improves the financial situation in the 2025-26 fiscal year. In fact, before signing Isaac at the end of the summer window, Liverpool's transfer operations were even profitable on paper.

From a more macro level, Liverpool's operating model is basically self-sufficient. While the 2023-24 season saw a record loss, this is seen as an exception; the club is expected to generate over £700m in the following 2024-25 season - in which transfer spending will be minimal - and return to healthy profitability.

However, potential financial risks may arise in the future. Clubs may face problems when they do not have the profits from large player sales to offset the ongoing and high annual costs (amortization charges and wages) of players signed during the previous summer.

However, the club's profitability in recent seasons has provided a cushion for this, and it is likely that "significant changes" will be made to the squad to balance the books should the need arise in the future. A specific example is that the huge contracts of Van Dijk and Salah will expire in 2027. If they leave the team by then, it will save the club a lot of salary expenses.