Financial Fair Play regulations are back in the news. The Premier League’s Profit and Sustainability rules (PSR) have already resulted in Everton picking up a points deduction, and the rest of the division is now waiting to hear whether they will face any sanctions.
Eddie Howe has mentioned limitations on his transfer spending several times and Newcastle admitted this week that it might have to cash in on a few players to fund more moves despite the Saudi backing that bankrolls the club. Arsenal, meanwhile, is among the teams restricted by what it has previously spent, with clubs allowed a maximum loss of around $134m (£105m/€122m) over a three-year period.
The argument has been made in some quarters that Newcastle (and everyone else) should be allowed to spend what it likes, but that would only lead to a one-team league. Even Manchester City would be unable to compete with unbound riches. In the long term, that would be a disaster for the Premier League’s competitiveness.
Skeptics of FFP, of course, point to the top of the league, with Liverpool included, being like a ‘cartel’ or a closed shop. But that ignores the fact that several teams have spent big in recent seasons only for that investment to end up wasted, Everton being a case in point.
Chelsea has proven willing to splash the cash and Todd Boehly’s project is yet to click into gear more than $1bn later. That goes to show that spending is not everything, with Liverpool top of the league on a much more meager budget.
Liverpool, under the FSG model, has no concerns over FFP. In fact, the regulations being applied correctly and punishments being handed out for those who break the rules is something that the Reds would encourage. FFP requires clubs to be well-run and careful and Liverpool has usually proven capable of exactly that.
There have been times when the caution has been so extreme that Liverpool has suffered — last season, for instance, even just one more signing ahead of the campaign could have preserved a Champions League place — but FSG’s plan means that Liverpool has room to maneuver. If a deal comes up that Liverpool wants to do this month or in the summer, it will not have to think twice.
The budget is there for a big addition if the right player is available. That was how the late swoop for Colombian forward Luis Díaz came about two years ago and why Liverpool was able to accelerate plans to bring in Cody Gakpo last January when it became clear that PSV was willing to sell. It is also why Jude Bellingham and Moisés Caicedo were affordable.
It is unlikely that the ideal signing would suddenly become available on the market before the end of January, but if it did, then Liverpool would be prepared to pounce and make the most of the opportunity. Other sides might not have the same freedom as they seek to balance the bottom line and avoid the danger of any sanctions.
Arsenal made moves for Jorginho and Leandro Trossard last January in a bid to try and do enough business to get over the line in the title race, ultimately falling short. While there is an argument that Liverpool should similarly try and capitalize on the position it currently finds itself in, those moves show why the Reds will only move for long-term targets.
Costing a combined $48m (£38m/€44m), Jorginho and Trossard are both squad players who have not elevated Mikel Arteta’s squad. At 32 and 29 respectively, neither will have much of a sell-on value.
Liverpool could do with getting a left-sided center-back in at some point during 2024 but if the right one is not available this month, a short-term option that would be expensive will not be signed for the sake of it. It is a gamble, but a risk that — largely thanks to Jarell Quansah’s progression — is likelier than not to pay off.
