Explained: How Liverpool can afford record deal for Alexander Isak without breaching PSR rules even after spending over £100m on Florian Wirtz

Liverpool have already been among the most active Premier League clubs in the transfer market. The Reds have brought in several high-profile signings, including German sensation Florian Wirtz, Hungarian left-back Milos Kerkez and versatile wing-back Jeremie Frimpong. These additions have cost an estimated £185m ($248m), underlining their intent to build a squad capable of competing on all fronts.

Despite this significant outlay, reports suggest Liverpool are still in a strong position financially, with room to make another blockbuster signing, such as Isak, without breaching spending limits. Arne Slot is ready to make him the focal point of their attack as they continue an aggressive summer rebuild. Moreover, the likely departure of Darwin Nunez will help them recoup a significant portion of their investment on the Swedish striker.

Speaking to TBR Football, football finance specialist Kieran Maguire provided clarity on Liverpool’s financial footing. According to Maguire, Liverpool are well-positioned to make further investments thanks to a combination of previous frugality, smart player trading, and healthy financial results.

"Liverpool are in a position of strength," said Maguire. "They were quiet in the market last year, and they have sold one or two peripheral players – others are likely to leave.

"There’s talk about Luis Diaz going too, so it would be a one out, one in basis. I think most people would regard that as an upgrade if Isak comes in. Liverpool are an extremely well-run organisation from top to bottom. They have both funds and PSR/squad cost rules capacity to spend a lot more money this summer. Isak would clearly be one area that they want to address."

Liverpool posted a positive PSR margin of £48m ($64m) for the previous financial year, ending May 31. When this figure is combined with the £105m ($140.5m) permitted in cumulative losses over a three-year period, it gives the Merseyside giants an effective headroom of £153m ($205m) under league rules. Furthermore, club revenues are reported to have topped £700m ($937m) for the year, driven by increased commercial earnings and deep Champions League runs. These figures indicate that Liverpool could theoretically spend up to £200m ($267m) more this summer and still remain compliant with PSR requirements.

Isak’s potential move to Anfield is seen as the finishing touch to Slot’s reshaping of Liverpool’s frontline. With questions surrounding the futures of Nunez and Diaz, the arrival of a clinical, technically gifted No. 9 could give the Reds a fresh edge in the Premier League title race. While Newcastle are believed to be reluctant to sell one of their most valuable assets, the £120m fee being floated could prove too tempting, especially as the Magpies manage their own PSR obligations.