How Liverpool can afford £120m Alexander Isak after Newcastle star asks to leave

Liverpool have already spent £265m on new signings this summer but smart business will enable them to continue spending and target a deal for Newcastle’s Alexander Isak

Liverpool may have already spent £265m in the summer transfer window, not including performance related add-ons, but the Premier League champions are now being linked more strongly than ever with a deal for Alexander Isak that could cost £120m.

So in the era of PSR, where clubs are evaluated on not posting losses of £105m across a three-year cycle, how can they continue to spend as they attempt to equip Arne Slot with a squad capable of retaining their title?

That they only signed Federico Chiesa, one of several players now up for sale, last summer has certainly helped but the key to their splurge is amoritisation and the book value of sales outweighing fees paid out that are spread across several seasons.

The sales of Trent Alexander-Arnold, Caoimhin Kelleher and Jarell Quansah for a combined £61.5m, with more departures destined to follow, means the Reds could sign Isak and still add another player amid continued links with Crystal Palace captain Marc Guehi. And here is how things could look on the balance sheet.

READ MORE: Transfer news LIVE: Alexander Isak bombshell, Arsenal break transfer rule, Liverpool star talks up exitREAD MORE: Liverpool handed clear run at Alexander Isak transfer as Arsenal and Chelsea stance emerges

How much have Liverpool spent so far this summer?

The spend on seven new signings is £265m with about £30m extra in add-ons to be factored in before considering various levies and agent fees.

Transfer fees paid so far

• Hugo Ekitike (Eintracht Frankfurt) £69m
• Milos Kerkez (Bournemouth) £40m
• Florian Wirtz (Bayer Leverkusen) £100m
• Jeremie Frimpong (Bayer Leverkusen) £29.5m
• Giorgi Mamardashvili (Valencia) £25m
• Armin Pecsi (Puskas Akademia) £1.5m
• Freddie Woodman (Preston) free transfer

How does amoritisation work?

Deals can be spread across a period up to five years – this rule was changed recently, around the same time Chelsea started committing players to seven and eight year deals – meaning the fee for Wirtz, for instance, could be included in the next five years’ accounts at £20m a pop.

The same applies to everyone else – Kerkez for £8m, Mamardashvili for £5m – meaning an approximate total of £53m on fees so far. Were they to add Isak for £120m, that would add another £24m.

Estimated amoritised fees

• Hugo Ekitike £13.8m
• Milos Kerkez £8m
• Florian Wirtz £20m
• Jeremie Frimpong £5.9m
• Giorgi Mamardashvili £5m
• Armin Pecsi £300,000

But the full price of sales are factored in?

Yes and that is why the term “pure profit” is also so vitally attached to the likes of Quansah, who came through the academy, Kelleher’s schoolboy team in Ireland, Ringmahon Rangers, did pocket a significant sell-on fee following his departure to Brentford but it does not move the dial hugely in terms of Liverpool’s spending power.

The only issue with this is it is a one off, meaning the outlay above will still be in next season’s accounts and that places an emphasis on Liverpool to keep on selling to ensure the books remain balanced.

A host of players, from Chiesa to Darwin Nunez and talented young midfielder Harvey Elliott, could depart Merseyside before the end of the transfer window to ease any concerns about moving on players next summer.

What about the club’s off-field earnings?

Very, very healthy. All projections point to revenue exceeding £700m for the latest financial year thanks to their title win, performances in the Champions League and TV money. Anfield’s expansion will have boosted matchday revenue, new commercial partnerships have been unveiled. And the income generated will continue to rise with a new TV rights cycle starting next month.

Join our new WhatsApp community and receive your daily dose of Mirror Football content. We also treat our community members to special offers, promotions, and adverts from us and our partners. If you don’t like our community, you can check out any time you like. If you’re curious, you can read our Privacy Notice.

Sky Sports discounted Premier League and EFL package

This article contains affiliate links, we will receive a commission on any sales we generate from it. Learn more

£43

£35

Sky

Get the deal here

Sky has slashed the price of its Essential TV and Sky Sports bundle ahead of the 2025/26 season, saving members £192 and offering more than 1,400 live matches across the Premier League, EFL and more.

Sky will show at least 215 live Premier League games next season, an increase of up to 100 more.