5 Reasons Liverpool  Can Afford Florian Wirtz's Record-Breaking 116 Million Pound Transfer Fee

Florian Wirtz is Liverpool's most expensive signing. Photo: Imago

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Florian Wirtz is Liverpool's most expensive signing. Photo: Imago

5 Reasons Liverpool Can Afford Florian Wirtz's Record-Breaking 116 Million Pound Transfer Fee

Mark Kinyanjui 18:30 - 14.06.2025

Liverpool’s record-breaking £136 million signing of Florian Wirtz is backed by soaring revenues, sustainable spending, and smart financial planning.

Florian Wirtz's move to Liverpool is set to be a new record club transfer, eclipsing previous benchmark.

The five-year deal will see Liverpool pay Bayer Leverkusen a guaranteed £100 million ($135.9 million), with potential add-ons of £16 million.

This surpasses the £75 million paid for Virgil van Dijk in 2018 and potentially even the Darwin Nunez deal, which could reach £85 million with add-ons.

Wirtz joins an exclusive group of footballers commanding £100 million-plus fees. But how can Liverpool afford such an outlay?

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Record Revenues Fueling Liverpool's Spending Power

5 Reasons Liverpool  Can Afford Florian Wirtz's Record-Breaking 116 Million Pound Transfer Fee
Florian Wirtz's move to Liverpool is poised to break three records. Photo || Imago

Liverpool's record signing coincides with record revenues. The club exceeded £600 million in 2023-24, despite playing in the Europa League.

With a return to the Champions League, a Premier League title win, and the expanded Anfield Road End, 2024-25 revenue likely topped £700 million, a figure previously reached only by Manchester City in England.

Further record revenue is anticipated in 2025-26, boosted by increased Premier League TV rights income and a new kit deal with Adidas, potentially surpassing their lucrative Nike partnership.

Managing Costs and Maintaining Profitability

While revenue is booming, Liverpool reported a £57.1 million pre-tax loss in 2023-24. However, this was an anomaly for a club that has generally broken even under Fenway Sports Group (FSG). A return to profitability is expected for 2024-25, potentially reaching £30 million even with a wage bill approaching £400 million.

Wirtz's estimated £200,000 weekly salary, plus employer costs, will cost Liverpool at least £12 million annually. However, the departure of Trent Alexander-Arnold offsets this cost.

5 Reasons Liverpool  Can Afford Florian Wirtz's Record-Breaking 116 Million Pound Transfer Fee
Trent Alexander-Arnold has been presented as a Real Madrid player.

A Departure from Typical Transfer Strategy

Liverpool's spending on Van Dijk and Alisson were outliers in a transfer strategy generally more restrained than their rivals. At the end of 2023-24, Liverpool's squad cost £749.4 million, significantly less than Chelsea, Manchester City, Manchester United, and Arsenal.

Wirtz's transfer, including agent fees, will add around £21 million annually to Liverpool's amortisation bill. While this increases their costs, they will still trail other "Big Six" clubs, potentially excluding Tottenham.

Financial Regulations and Cash Flow

Liverpool's financial position allows them to comfortably accommodate Wirtz's transfer without breaching Premier League Profit and Sustainability Rules (PSR). While player sales are not required for PSR compliance, they could help balance the squad and finances. A high-value departure, possibly Nunez, wouldn't be surprising.

Liverpool has ample access to funds through a refinanced revolving credit facility. Positive operating cash flow and reduced infrastructure spending further strengthen their financial position. Their relatively low net transfer debt, compared to other Premier League clubs, also contributes to their financial stability.

A Significant Investment with Calculated Risks

The total cost of signing and employing Wirtz over five years is estimated at £170.5 million, potentially reaching £200 million with add-ons and bonuses. While substantial, these figures are manageable for a club of Liverpool's financial stature.

FSG's prudent financial management has positioned Liverpool to capitalize on opportunities like this, allowing them to make significant investments while maintaining long-term stability.

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