Liverpool transfer link continues PSR masterplan after £48m deals completed

Liverpool transfer link continues PSR masterplan after £48m deals completed

Liverpool midfielder Tyler Morton is reportedly attracting from several clubs in Europe

Arne Slot and Richard Hughes during a Liverpool press conference. (Image: Andrew Powell/Liverpool FC via Getty Images )

Liverpool's ability to manoeuvre in the transfer market will be boosted by the continued sales of homegrown players after Tyler Morton became the latest academy graduate to be linked with a move away from Anfield.

The Times reports that Morton is attracting interest from several clubs across Europe after helping England's under-21s win the European Championships last weekend.

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It is claimed that West Ham United, Braga and Ajax are some of the sides interested in the 22-year-old, who was limited to a bit-part role at Anfield last season as Liverpool won the Premier League.

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After back-to-back seasons with Blackburn Rovers and Hull City, Morton, who was valued at around £20m, was denied the opportunity to join Bundesliga champions Bayern Leverkusen on loan last summer.

Twelve months on, however, the midfielder is expected to leave the Premier League champions and, in doing so, boost Liverpool's coffers further.

According to Reach PLC's Business of Football Writer Dave Powell, the potential sale of the England under-21 international will only strengthen the Reds' standing in adhering to the Premier League's Profit and Sustainability rules.

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“Liverpool have no issues with complying with the Premier League’s PSR rules, even after the additions of Florian Wirtz, Milos Kerkez and Jeremie Frimpong," said Powell.

"In fact, they have the flexibility to absorb business of that kind again now that they have moved into a new financial year.

“For 2023/24 the club posted a £57m loss. The reason for that was almost entirely due to the club’s lack of competitive success, where they spent a season out of the Champions League and in the Europa League, where prize money and broadcast fees are massively diminished.

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“They returned to the Champions League last season, reaching the last 16 before losing to Paris Saint-Germain, but their league phase performance, allied with five additional matchdays, means that the club will have booked around £90m in attributed revenues.

"That bump, when put alongside minimal spend, reduced amortisation costs for 2024/25 and bigger commercial revenues, means that it is likely £700m will be passed in total revenue for the first time, with the club returning to profitability.

“That profitability, when allowable deductions or PSR are taken into consideration such as investments in infrastructure, the women’s team, the academy and community initiatives, means that the club will be net PSR positive, which they already were to the tune of £20m for 2022/23 and 2023/24.

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"A loss is not anticipated, meaning that they could, on the basis of the allowable deductions of £48m from last year, be around £90m PSR positive if they turned a profit of just over £20m, which seems feasible.

"That, alongside the £105m PSR threshold, means that the club are well clear of having to be concerned.

“Wirtz, Kerkez and Frimpong’s arrivals add around £34m per year in amortised costs to the balance sheet per year.

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“Looking at the sales of Jarell Quansah and Caoimhin Kelleher, whose combined sale fee was £48m, albeit with a percentage heading back to former club Ringmahon Rovers in Kelleher’s case, the fact that they are academy graduates allows the club to book that cost as pure profit in an accounting year, with Quansah’s falling in 2025/26, another year where the competitive success could bring profitability despite heavier spending."

Powell added: “Potential exits of Tyler Morton and Harvey Elliott would account for almost pure profit, with Elliott a slight outlier, and it wouldn’t be unrealistic to assume that they would combine £50m as a pair. Nearly all profit.

“That’s handy for accounting purposes, and how willing Liverpool would be to do a deal may rest on how much clubs pay up front, as transfers, no matter how they are amortised on the balance sheet, still need to be paid in cold, hard cash, and that requires cash flow, which sales can bring.

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“Liverpool would also need to replace them, but as their PSR position shows, they have no problem absorbing that cost as the sales of Quansah and Kelleher alone are more than the annual cost of signing Wirtz, Kerkez and Frimpong.

“FSG don’t like piling too much risk, and it’s unlikely that they’d be willing to let amortisation costs reach Chelsea levels of more than £200m, but there is flexibility, and there are saleable assets if its felt a change of personnel would improve the chances of solidifying their position as a dominant force domestically and enhance their Champions League prospects.

“Long story short, they have no financial reasons to not be able to continue to add from the position of strength where they find themselves.”

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