TA: Liverpool s financial situation has strong support for signings. Slott has met with Cherki

June 3rd News TheAthletic's special summer window column wrote an article about Liverpool's transfer operations this summer.

Wilz

As disclosed last week, Liverpool has made a second offer for Wilz, and the two sides have not reached an agreement yet, but negotiations are still ongoing, and the outside world is optimistic that the deal is expected to be reached. It is widely believed that this week may be a key week to determine the direction of the 22-year-old German international, which has become a one-man show given his tendency to join Liverpool and the two sides are interested in pushing the deal. Wiltz is the most watched player in the transfer market at the moment, with Liverpool’s offer of up to 130 million euros (£109 million including fixed fees and potential additional terms), which may also increase.

Wilz is Liverpool's long-term goal and first choice to sign, and is also the only player they have made a offer at this position. But it was revealed that Slott interrupted his holiday last week and flew to southern France to meet with Lyon player Cherky.

Liverpool remain focused on Wilz's transfer, but this does not prevent them from conducting due diligence on other candidates and preparing for various possibilities. The talks with Cherki are arranged to conduct such conversations before chasing Werz acceleration, without the priority goals yet and multi-line operations. Despite reports that Cherki's contract contains a penalty clause of 22.5 million euros, this is not the case. Although Cherki's contract expires next summer, Lyon still hopes to negotiate for higher transfer fees. The clubs, the club and Chelsky still need to reach an agreement, but the transfer process is progressing, and Manchester City is optimistic about signing the 21-year-old French player.

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Liverpool have spent £29.5 million to sign Flynnon from Leverkusen, and this summer is destined to be busy for the Premier League champions, who are currently seeking to sign an attacking midfielder and a left-back. What is the top priority of the head coach?

Slott once spoke of his hope to add new weapons to the Liverpool lineup. He understood that the Reds need to go further on the basis of winning the championship, and the team needs to evolve and improve. This season, Liverpool was eliminated by Paris Saint-Germain, who won the Champions League in the last 16. Therefore, Slot is determined to ensure that the team becomes a strong contender in the Champions League in the 2025-26 season. He hopes that the team has more speed, vitality, creativity and goals.

In addition to the most important target, Wiltz, Liverpool also targeted Bournemouth left-back Kolkz, whom the Cherries valued him at about £45 million. Further signings after Liverpool signed the two will depend heavily on the current players' sales.

What players does Liverpool plan to sell?

In addition to the 10 million euros (8.4 million pounds) paid by Real Madrid for Arnold, there is also a transfer fee of up to 18 million pounds achieved by Kellehe. Liverpool is expected to raise a lot of money by selling Nunes, and the Saudi league team is interested in him, and Atletico Madrid and AC Milan are also paying attention to his situation. There is also uncertainty about the future of Luis Dias, who has ties to Barcelona and Saudi club Riyadh Crescent, whose contract expires in 2027.

If Kolkz is signed as expected, one of Liverpool's existing left-backs may become redundant, and Zimikas is considered the most likely to leave the team.

Whether players with limited playing time in the 2024-25 season, such as Elliott and Kanssa, will push the transfer and what offer they can receive, remains to be seen. Morton, Nat Phillips and Reese Williams are expected to leave the team for new challenges. Ben Dok and Baychetic also attracted a lot of interest from the team.

Will there be any players being loaned out?

Jaden Dance was loaned to Sunderland in January this year, but returned to the team soon due to a back injury. He and McConnell may be loaned out. Young players such as Irving Baker, Lewis Kumas, Cad Gordon, Calvin Ramsey, Luke Chambers and Luca Stephenson also need to make loan decisions.

In addition, No. 3 goalkeeper Jaroche is eager to gain more first-team experience after staying on the team as a substitute in the 2024-25 season. Harvey Davis may be promoted, the youth training graduate originally had a contract expire this summer but recently signed a contract extension. What is Liverpool’s budget and how is the financial fair competition (PSR) situation?

Fenway Sports Group is still committed to a sustainable operation model, and all revenue will be reinvested into the club. Each potential transaction is based on its own value assessment, rather than Liverpool has a fixed spending limit.

Liverpool's latest 2023-24 season financial report shows that the club lost 57 million pounds before tax. But they have no hidden worries about financial fair competition (PSR), as they make a profit of £7.5 million in 2021-22 and lose £9 million in 2022-23.

This season, Liverpool's financial situation is more optimistic: returning to the Champions League brings rich income, and winning the Premier League championship also brings bonuses. In addition, their new jersey sponsorship agreement with Adidas will take effect this summer, which is significantly higher than the current agreement with Nike (including about £60 million per year after royalties), coupled with the generous income from the Asian preseason (Liverpool will compete in Hong Kong and Japan).

They have the ability to fund a deal like Wiltz, and while the spending on signing three is expected to exceed £180 million, Liverpool may recover most of the money by selling the players.

Did Liverpool's silence last summer give them more budget this season?

According to the latest financial report, Liverpool's net transfer expenses last summer were only £100,000. While winning the Premier League title may trigger some performance-related terms for existing players, it is clear that they spend very little in the 2024-25 season.

The upcoming summer is very different: Flynn has joined for nearly £30 million; they made a club record of £109 million for Wilz on Friday. Obviously, they have the will and the ability to spend money this year.

This is at least partly due to last year's thrift. Based on financial data from 2023 to 24, Liverpool's transfer fee amortization cost is lower than that of the "BIG6" competitor, more than 21 million pounds less than the fifth-ranked Tottenham Hotspur, which is ranking fifth. Low spending last year will only widen the gap further, and their transfer spending space looks broader as Liverpool's 2024-25 revenue surges to over £700 million.

Under the leadership of Fenway Group, Liverpool has been cautious in managing transfer expenses. This is more out of the desire to operate sustainably than fear of violating financial rules or cash flow issues; Liverpool is almost safe in terms of financial fair competition and has increased the revolving credit line (basically equivalent to flexible loans) from £200 million to £350 million in September 2024. Funds are available at any time if needed.

Net transfer expenses under Fenway Group often drop to zero every two years, reflecting the management's hope that the club will basically operate within its own financial resources. After following this trend last summer, Liverpool certainly has the ability to invest this year.