Liverpool FC Forum

I asked ChatGPT how much Liverpool could spend this summer and still remain compliant

Here’s a detailed breakdown of how much Liverpool can spend this summer under current Premier League financial rules:

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Current PSR (Profitability & Sustainability Rules)
1. £105 million maximum allowable loss over any rolling three-year period
– This can include up to £35 million per season of owner “secure funding” 
2. Liverpool has strong recent finances
– For 2023–24 they posted a pre-tax loss of £57 million
– However, Champions League qualification in 2024–25 boosted income and likely brought them close to or of breakeven, resetting the three-year rolling total  .
3. **Amortisation helps unlock transfer budget**
– Transfer fees are amortised over the length of player contracts (capped at five years).
– In theory, Liverpool could register up to £525 million of new signings (5 × £105 million) before hitting the £105 million loss cap 
– But this excludes wages and other costs, which also count toward the limit.

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Squad Cost Ratio (SCR) - Trial Phase

While still under PSR, the PL is trialing a Squad Cost Ratio (SCR) limit, capping combined wages, amortised transfer fees, and agent fees at 85% of club revenue 
• Liverpool’s most recent revenue was £614 million, potentially rising toward £700 million 
• 85% of £614 million = ~£522 million
• If revenue hits £700 million, the cap could be ~£595 million

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UEFA Benchmark for Context

UEFA’s 70% rule (applying to European clubs) would allow Liverpool to spend approximately:
• Average turnover ~£650 million → 70% = ~£455 million on wages, transfers, agent fees 

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Summary: What Liverpool Can Spend
• £105 million over 3 years loss cap: still plenty of headroom.
• Amortisation budget: up to ~£525 million new signings (transfer fees only).
• SCR cap: combined wage + fee + agent costs can’t exceed ~£520–595 million, depending on turnover.

So realistically, Liverpool could invest heavily this summer — potentially £200–300 million+ — and remain compliant:
• Despite large transfer spend, smoother amortisation across 3–5 years helps manage annual books.
• Still within 85% SCR limit, given robust revenue and prudent wage structure.
• And comfortably under the £105 million three-year loss ceiling.

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Key Caveats & Risks
• Future SCR rules may become binding, not just trial. Once formalized, Liverpool would face stricter annual limits.
• “Anchoring” proposal: caps spending based on broadcasts (~5× revenue of lowest club), though not yet approved
• Owner investment limits: Only up to £35 million/year can count toward PSR via injections; any excess increases the loss and eats into the £105 million allowance.

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Final Take

Liverpool are well-positioned under current PSR:
• Full £105 million three-year loss cushion remains available,
• Huge amortisation capacity (~£525m),
• And SCR headroom (~£520–600 million combined spend).

They could feasibly spend several hundred million pounds this summer on transfers and wages without breaching rules — though long-term planning remains essential to respect evolving financial regulations.