Liverpool has invested over £170 million in new players this summer and is reportedly interested in acquiring Newcastle United's Alexander Isak. The potential deal for Isak is estimated to cost up to £130 million, which would bring Liverpool's total summer spending to £300 million.
This marks a significant increase from last year's summer window, where they spent only £10 million on Italy winger Federico Chiesa and £25 million on Georgia goalkeeper Giorgi Mamardashvili. BBC Sport reports that while Liverpool has considered other center-forward targets, they are actively pursuing a deal for Isak.
Among Liverpool's summer acquisitions are midfielder Florian Wirtz for a potential British record of £116 million, and full-backs Milos Kerkez and Jeremie Frimpong for £40 million and £30 million respectively. The question arises: How can Liverpool afford such expenditure, and do they have the budget to continue spending?
Can Liverpool Afford Isak?
Liverpool's financial position has been strengthened this year due to several key factors. They earned £175 million in prize money for winning the Premier League. Additionally, last season was the first full campaign with an expanded Anfield Road End, increasing stadium capacity. Furthermore, starting from August 1, Liverpool has a new kit deal with Adidas, reportedly worth £60 million per season, surpassing their previous partnership with Nike.
These factors, coupled with relatively low transfer spending in previous windows, ensure Liverpool remains well within the Premier League's profit and sustainability rules (PSR), which permit losses of up to £105 million over three years.
"Liverpool is a remarkably smart football club," commented football finance expert Kieran Maguire to BBC Sport. "They are in a robust PSR position. Among the top six clubs, they've spent the least in this three-year cycle—only £325 million—including the signing of Florian Wirtz."
"They have considerable flexibility in their transfer budget. Moreover, a deal for a striker is likely to be structured in installments, allowing the cost to be distributed across multiple seasons."
'Liverpool's Model Has Been to Ignore the Noise'
Over the past three seasons, Liverpool's net transfer spending has been -£4 million, £96 million, and £53 million, according to Transfermarkt. In comparison, Manchester United's net spend for the same period has been £119 million, £133 million, and £190 million.
"Liverpool has not been among the top-10 spenders on player signings since 2019, but their approach exemplifies being smarter rather than bigger," said Maguire. "Their model focuses on ignoring external pressures and acquiring players only if they genuinely enhance the squad. It’s a Moneyball, more analytical approach."
"Chief executive Michael Edwards excels in his role and avoids making signings due to external pressure. He remains composed even when fans demand more acquisitions."
"While Wirtz, Milos Kerkez, Jeremie Frimpong, and potentially Isak are significant signings, they all strengthen the Liverpool squad, and the club possesses substantial PSR headroom."
Who Else Could Be Interested in Isak?
Newcastle has maintained throughout the summer that its top players, including Isak, are not for sale. Like Liverpool, Newcastle, owned by Saudi Arabia's Public Investment Fund (PIF), enjoys a comfortable PSR position.
Isak has three years remaining on his contract, so he would likely need to push for a move actively. Besides Liverpool, few clubs in the market for a striker could afford Isak's reported £130 million price tag.
"As the most profitable club in Premier League history, Arsenal could easily spend over £200 million in the window without PSR concerns," said Maguire. Despite being linked to Isak, Arsenal is expected to finalize a deal with Sporting for striker Viktor Gyokeres, valued at 73.5 million euros (£63.5 million).
Manchester City is unlikely to pursue a striker, with Erling Haaland and Omar Marmoush under long-term contracts. It seems doubtful that United could afford Isak's fee without significant player sales, especially after missing out on Champions League football next season. Chelsea has acquired strikers Liam Delap and Joao Pedro this window.
"In theory, Tottenham could also afford Isak," said Maguire. "But whether the player would want to move from a team that finished fifth to one that finished 17th is a whole other story."
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