The frugal Liverpool began to operate for the first time!

Record trading marks a new era

Liverpool's signing of Wilz from Leverkusen is earth-shaking. The basic transfer fee is as high as £100 million, and the total amount of floating clauses can reach £116 million. Wiltz has become the most expensive signing in Liverpool's history, surpassing Van Deck's £75 million transfer fee in 2018, and even exceeding the total price of Nunes including performance terms.

This is by no means a regular operation for Liverpool. As The Athletic's Chris Weatherspoon points out: "Anfield executives don't usually pay a lot of money to buy a well-known superstar, but they are happy to make an exception for the German star." The club's traditionally frugal style under the management of Fenway Sports Group makes such deals extremely rare. Because of this, this signing is even more important. The financial support behind the transfer

Liverpool was able to complete this sky-high transaction due to its thriving financial health. In the 2023-24 season, despite the UEFA Cup, the club's revenue exceeded 600 million pounds. This figure is expected to exceed £700 million last season (2024-25) after regaining the Premier League title and returning to the Champions League.

The specific figures are staggering: winning the Premier League alone brings £181.5 million in revenue to Liverpool; the new TV rights cycle and the upcoming jersey sponsorship agreement with Adidas (replaces Nike's already lucrative contract) all signal further revenue growth. Wetherspoon explained: "Liverpool's business growth momentum is good and is expected to continue."

Control costs and demonstrate ambitions

Although the club reported a pre-tax loss of £57.1 million in the 2023-24 season, this is an abnormality. Wetherspoon expects Liverpool to return to "healthy profit" in the 2024-25 season, and may still achieve a net profit of about £30 million even with salary bills close to £400 million.

Wilz expects a weekly salary of £200,000, which means a total employment cost of at least £12 million a year. However, Arnold's departure from the team with a similar salary has eased the burden.

Importantly, Liverpool's transfer fee amortization cost is relatively low. Wiltz's transfer fee (plus broker commission) is spread to about £21.8 million per season. With Flynnon's signing, Liverpool's amortization costs have increased, but they still lag behind competitors such as Chelsea and Manchester City.

PSR, cash flow and Fenway's smart bets

Profit and Sustainability Rules (PSRs) do not constitute obstacles. Even with the approximately £34 million wages and amortization costs added by Wilz every year, Liverpool is well below the PSR's regulatory redline. As The Athletic outlines: “They (these revenue growth) are not to meet PSR requirements…but they do help balance the team’s roster and financial accounts.” There is no need to worry about cash flow, either. Liverpool has a revolving credit line of 350 million available, and as of May 2024, only 116 million pounds were used, with very abundant liquidity. Their unpaid transfer installments are also minimal compared to other competitors, keeping them financially flexible.

Wetherspoon concluded: "Fenway's ownership is not something that all fans like, but it is precisely its frugality that allows Liverpool to complete the deal when opportunities arise."

Our view

From the perspective of Liverpool fans, this is the dream signing. Wilz is not only a big signing, but also the kind of creativity that Anfield has longed for since Coutinho's era. Wiltz's performance in the Bundesliga is amazing and now he is ready to shine in the Premier League.

Critics often accuse Fenway of being too cautious, but this deal proves that when the right players appear, the owners are willing to provide huge financial support to the team. The timing is also quite symbolic. Just won the league championship and has a young squad with unlimited potential, which feels like a declaration of ambition.

Wilz's £200,000 weekly salary is never cheap, but the deal is sustainable. Even if Nunes needs to be sold to partially raise this reconstruction fund, few fans believe that they will object. The Wiltz era may mark the beginning of a new journey in Liverpool.