7 Reasons Liverpool Can Still Afford Alexander Isak After £500m Spree on Ekitike, Wirtz And Co

Liverpool have stunned the football world with an audacious summer of transfer activity that’s seen them commit over £500 million on marquee arrivals such as Florian Wirtz, Hugo Ekitike, Jeremie Frimpong, Milos Kerkez, and Giorgi Mamardashvili. 

Even with this unprecedented outlay, the Reds remain strongly linked with a mega-money move for Newcastle United striker Alexander Isak, whose valuation could rise to as much as £150 million.

While this level of spending might raise eyebrows, The Athletic reports that Liverpool remain within Premier League Profit and Sustainability Rules (PSR) and are operating with strategic financial foresight. 

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Here’s a breakdown of how the Merseyside club can still afford Isak — and why the financial structure of their business supports such a move.

Under PSR regulations, clubs are allowed to post a maximum loss of £105 million over three seasons, with several cost categories excluded from this calculation — including spending on youth development, infrastructure, and women’s football.

Despite recording a £57.1 million pre-tax loss in 2023–24, Liverpool’s actual PSR losses are far smaller due to over £40 million in annual exempt costs, according to The Athletic. 

With anticipated profits for 2024–25 and no signs of reckless spending in previous seasons, Liverpool have room to post a controlled loss in 2025–26, giving them leeway to make another major investment this summer.

Liverpool have not just spent wisely — they’ve sold strategically. The club has already generated nearly £100 million in pure player profit from the following summer exits:

Luis Díaz to Bayern Munich – £65.6 million

Jarell Quansah to Bayer Leverkusen – £30 million

Caoimhin Kelleher, Nat Phillips, and Trent Alexander-Arnold – ~£15 million combined

Because most of these players were acquired either cheaply or years ago, their book value was minimal, allowing Liverpool to bank the majority of the transfer fees as immediate profit, which counts directly against PSR losses.

The Athletic estimates these deals contribute £99.5 million in profit for the upcoming PSR cycle — nearly offsetting the amortised impact of all five new signings combined.

Liverpool’s clean balance sheet is a key enabler of their bold summer strategy. According to The Athletic, the Reds owed just £69.9 million in transfer fees as of May 2024 — a figure dwarfed by the likes of Manchester United (£271.6m) and Chelsea (£232.4m).

This relatively low level of deferred payments gives Liverpool a competitive edge. With fewer financial obligations from past deals, they have more flexibility to commit funds toward high-value targets like Isak without violating fiscal sustainability requirements.

In 2024, Liverpool completed the costly Anfield Road End expansion and refinanced their revolving credit facility (RCF), increasing it from £200 million to £350 million.

Only £116 million of that credit line was drawn by the end of the 2023–24 season. This gives Liverpool the liquidity to structure deals with upfront payments while maintaining operational flexibility. Importantly, there’s no indication of creative accounting or controversial internal sales, as seen at some other clubs.

Liverpool posted revenues exceeding £700 million in 2024–25, a record in club history. With Champions League football returning, a fully operational expanded stadium, and strong global partnerships, income is projected to increase again this season.

Crucially, Liverpool remain compliant with UEFA’s Squad Cost Ratio (SCR), which caps football-related expenditure at 70% of club revenue. Even with rising wages and transfer spending, the club is not yet approaching this threshold — another indicator of healthy financial planning.

One of the most important tools in Liverpool’s arsenal is their ability to amortise transfer fees over the length of a player’s contract. A £150 million deal for Isak, on a six-year contract, would result in an amortised annual hit of just £25 million — manageable within PSR limits.

Wages for the Swedish forward, estimated around £14–18 million per year, bring the total annual cost to roughly £43 million — a figure that would be largely offset by the club’s existing player profit for this year.

The combined amortisation cost of Wirtz, Ekitike, Frimpong, Kerkez, and Mamardashvili is estimated at £56.3 million for 2025–26. Add Isak, and Liverpool’s annual transfer-related costs remain within the bounds of financial fair play — especially when paired with rising revenues.

Liverpool’s top earners — notably Mohamed Salah and Virgil van Dijk — have contracts that expire in 2027. Whether or not they remain beyond those dates, the club is well-positioned to reallocate wages or reduce overall payroll if needed.

In the short term, The Athletic reports that Liverpool have already shed £25 million from the wage bill through player exits this summer. That creates breathing room to accommodate incoming salaries without breaching the SCR or PSR guidelines.

Liverpool’s aggressive summer spending is not a case of financial recklessness — it’s a carefully calculated gamble rooted in profit, performance, and structural discipline. With nearly £100 million in player profit, low transfer debt, and rising revenues, the club can afford to chase a deal for Isak and still stay within the rules.

The real challenge will come in future seasons. Unless they continue to grow commercial revenues and maintain strong on-field results, the Reds will need to adjust to avoid long-term financial strain. But for now, a bold move for Isak is both financially feasible and competitively logical.