Billy Hogan speaks out as Liverpool could spend £173m this summer

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Liverpool CEO Billy Hogan has made comments that illustrate where the club is in terms of its transfer strategy this summer.

In keeping with what we have seen across the Premier League, it has been a fallow transfer window so far for Liverpool.

Thiago Alcantara, Joe Matip and Adrian all left the club on the expiry of their contracts, while 20-year-old right-back Calvin Ramsay has joined Wigan on loan.

But new manager Arne Slot is yet to make a single addition to his squad ahead of the start of the new Premier League season in six weeks time.

There are wider market factors for this.

The Saudi Pro League’s lack of bombastic transfer activity means there is less money in the system, while logistical problems posed by the Euros and concerns around PSR have all had an effect.

But those macroeconomic factors will not do much to ease anxieties of Liverpool supporters who are desperate to see the squad strengthened to improve on last season’s 3rd-place finish.

Ultimately, Liverpool’s window will hinge on how much the owners, Fenway Sports Group, are willing to sanction while ensuring the wider business remains sustainable.

And Hogan’s comments give something of a clue about FSG’s strategy in this department.

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Liverpool CEO Billy Hogan comments on FFP/PSR

The Premier League’s Profit and Sustainability Rules, or PSR (formerly Financial Fair Play, or FFP), limit clubs to losing £105m over a rolling three-year period.

UEFA’s system for 2024-25 meanwhile will next season limit clubs to spending 80 per cent of revenue on wages, transfers and agent fees.

European governing body also has a tighter loss limit than the Premier League, but with more flexibility allowed for clubs who are deemed in good health, which Liverpool irrefutably are.

PSR has become one of the most talked about issues in football following sanctions against Everton and Nottingham Forest and charges against Man City and Chelsea.

As John Henry and FSG have always emphasised self-sufficiency, Liverpool have no issues in this department, and the lucrative redevelopment of Anfield will give them even more headroom.

That might explain Hogan’s remarks, which were reported by The Independent earlier this week.

“I think it is important that the rules have teeth and if clubs fall foul of that then the Premier League has a process to go through. We are supportive of those rules and being sustainable,” he said.

“We think that clubs should be run sustainably, not losing money.

“We are supportive of the new financial regulations and we’re working through those. The new system means changing from PSR to the squad-cost rule. That will come into play after this season.

“We have the most competitive and global league, and it’s important we keep it that way.”

TBR Analysis: Why do Liverpool want strict PSR rules?

While the owners of clubs like Newcastle and Chelsea are prepared to bankroll huge losses to deliver success on the pitch, Hogan and FSG want Liverpool to stand on their own two feet.

It stands to reason then that he would want PSR to reign in the spending of their rivals who otherwise would have far greater spending power than them.

Significantly, analysis from world-renowned football finance expert Swiss Ramble has found that Liverpool had an estimated £173m of PSR headroom at the close of last season.

Essentially, that means that the club could spend that amount and more on new additions without breaching PSR, so long as the owners are prepared to cover the resulting financial losses.