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Other clubs' transfers


Greg

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We don't have a lot of money to pay upfront.

 

Why is that? The new stand at Anfield? With the success Liverpool have had in recent years I'd have thought they be loaded.

 

I dont quite understand the details provided here: https://www.empireofthekop.com/2020/09/07/why-liverpool-arent-spending-brilliant-swiss-ramble-thread-reveals-all/

 

FSG has invested quite a bit into the new main stand and is spending 50-60 million on a new training facility. That is a factor. They were also planning to submit paperwork to obtain permission for Anfield Road End Expansion but as of now, they have stopped it.

 

Also, based on my limited understanding, the wages we provide are incentivized by a heavy bonus structure if we win anything big. Last two years, we won the champions league and the premier league. Our wage bill has grown a lot due to that. Mane, Salah, Van Dijk, Alisson all make 150-200K. If we win anything big they make generous bonus. I remember our CEO commenting to one journalist last year that we dont make any additional money as a club by winning the champions league as the win bonuses take care of that. Again, I might be simplifying or misinterpreting these things. 

 

With all of that, we were at an operating profit but it seems COVID-19 has wiped it out.

 

I also believe FSG are being extra cautious due to dual exposure from Liverpool as well as Red Sox. It looks like Red Sox is also projected to experience huge losses this year. FSG are rich but not Abramovich or City rich who can write off losses from two clubs in a year.

 

It is in a way irritating in the sense that I thought this summer we could compete for the truly elite talent. That is not happening. But I dont want to appear as complaining. FSG have been brilliant owners. Everything we make goes right into the club. The club lives within its means and when extra cash is needed - ground expansion, training facility - they have injected cash in the form of zero or low interest loans I believe.

 

I'm a red sox fan, and there have been some questions about Henry and Werner, and if they are losing a lot of money right now.  The Red Sox just cut a lot of scouting positions.

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Also, a lot of transfers have trophy bonuses attached to them too, not just player wages. Barça and Madrid had massive bills this decade with all their CL wins. We had to take a loan to pay all the bonuses during Luís Enrique's treble season.

 

In general for a club winning a trophy is bad for the bottom line, in the short term (growing your stature and commercial appeal outweights it in the long term, of course).

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