Liverpool have spent ONLY 2% of revenue earned over last five seasons on transfers
Liverpool are one of the most valuable and profitable clubs in the world, earning over £500m per year on average over the last five seasons in revenue.
It makes sense that if you earn as much as Liverpool does, you will also be spending a lot on players. While that is true in terms of wages, it's not the case in terms of money spent on transfers.
Finance expert and Liverpool fan Mo Chatra explains: "There can be no question that the club went through a stellar purple patch on the recruitment front between the summers of 2016 to 2018; Gini, Mane, Matip, VVD, Mo, Robbo, Alisson and Fabinho proved to be fantastic signings.
"During that period, the club spent close to £400m, though much of the spend on incomings was funded by player sales (£280m).
"Since then, the club has spent relatively modest amounts on incomings- outlay on incomings has been approximately £240m (thus far) with sales of £194m (or a £46m net spend post-2018).
"For the first team squad, that outlay has gone on Elliott, Minamino, Jota, Thiago, Tsimi, Konate, Diaz, Nunez, Carvalho and Ramsay. That is less money than Newcastle will have spent this calendar year by the end of next week, and also, by some distance the least of the Big Six."
Chatra is pointing out that the Reds' transfer business has slowed down since the 2018/19 season began, with very few signings here and there and not enough spent as compared to the teams we are competing with.
Chatra adds: "In simple terms, this analysis shows that of all revenue generated by Liverpool over the past four seasons, just 2% has gone towards funding transfer activity (based on a net spend of £46m)."
For comparison, here is how the rest of the Big Six clubs' fare in terms of transfer spending as a percentage of the total revenue earnt since 2018:
Liverpool: 2%
Man City: 8%
Chelsea: 12%
Spurs: 17%
Man United: 19%
Arsenal: 26%
The detailed table for turnovers, wages and transfer spending can be seen in this tweet:
It also contains net spend information based on figures available from https://t.co/5VtXR5XDMF and percentages covering four seasons since 18/19 and transfer windows from summer 2019 onwards (on the basis income generated in 18/19 then funded transfer spend in summer 2019).
— Mo Chatra (@MoChatra) August 24, 2022
The other Big Six clubs' net spend relative to turnover is significantly greater. Of course, spending money by itself doesn't guarantee success but it's a huge part of winning titles for sure.
Chatra sums up the situation: "I could understand being in this situation [not signing players] had we generated significantly less money; but we’ve made more money this last year than all but a small handful of clubs in the history of the game- and yet we still appear to be leaving ourselves short for the fourth successive summer."
Source: MoChatra @ Twitter
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Henry
just love writing about football and playing video games, love my quiet time also. contact me @ [email protected]
