It’s the acronym that has been sending shivers through a number of Premier League clubs for several seasons. But it could provide Liverpool and Fenway Sports Group the chance to rekindle a hard-earned reputation in the transfer market.
Profitability and sustainability rules – or PSR for short – have had a significant impact since their introduction, both in terms of player movement and the league table.
The regulations are a contributory factor to Chelsea handing players eight-year contracts, Newcastle United being unable to fully capitalise on the untold riches of their moneybags Saudi owners, Manchester United not strengthening their flailing squad during the January market and newly-promoted Leicester City having concerns over their position before a ball is even kicked next season.
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And it’s why Nottingham Forest were docked points this season and Everton twice suffered the same punishment, albeit ultimately without thus far compromising the place of either among the Premier League elite.
Put simply, the spending of clubs is being kept in line with their revenue and they can lose a maximum of £35million per season or £105m over three campaigns. As ever, there are the occasional caveats where costs can be deducted. But clubs in danger of overstepping the mark are often unable to splash out on new players and must hastily move on current squad members.
Given the tight ship run by FSG that can irk those who want Liverpool’s owners to loosen the purse strings in the transfer market occasionally, the Reds have no concerns about breaching the limits. They can carry on as normal this summer.
And Liverpool have have demonstrated in the past, particularly when Michael Edwards was sporting director, an ability to capitalise on opportunities that present themselves in the transfer market. Witness the signings of Gini Wijnaldum, Xherdan Shaqiri and Andy Robertson from relegated clubs, or taking Alex Oxlade-Chamberlain from Arsenal at a lower price having entered the final 12 months of his contract.
True, the Reds have stepped away from that slightly in recent years, compelled in some part by the difficulty in maintaining their position among the leading clubs in Europe. It’s one thing to close the gap using a frugal approach, quite another to continue rubbing shoulders with them over an extended period of time.
But there have been signs of a return to such an approach, not least the knowledge of Alexis Mac Allister’s £35m release clause at Brighton and spending just £16.25m on Wataru Endo from Stuttgart. The Reds’ earlier moves for Luis Diaz and Cody Gakpo were examples of being willing to step in before rivals pounced.
Edwards, of course, is now back in the FSG fold having been appointed chief executive of football with the Anfield owners. And with close friend Richard Hughes the new Reds sporting director and Julian Ward returning as FSG technical director, there’s a sense Liverpool will once again look to work smarter in the transfer market as well as continue to extract full bang for their buck.
Liverpool will therefore be monitoring the situation at Forest, with the deadline for the next PSR rules approaching on June 30. A report in the i newspaper has claimed the Midlanders will have to sell players before the end of next month to avoid once again breaching spending limits and risk another points deduction next season.
While Forest will inevitably want to keep their best players, that is realistically unlikely. And that could open the door for the possible exit of highly-rated centre-back Murillo, who impressed during his debut campaign with Forest having joined from hometown club Corinthians in Brazil. Indeed, he was named the club’s player of the season.
With Joel Matip having departed, Virgil van Dijk in his thirties, concerns over the injury record of Ibrahima Konate and Joe Gomez now a hugely effective utility player, Liverpool will look to strengthen their options at the heart of defence this summer. And 21-year-old Murillo fits the long-established profile preferred by FSG..
Forest would want a significant fee but may not be in a position to overly haggle given their need for immediate funds to meet PSR demands. But an auction may not be out of the question given a growing reputation means Murillo, while on Liverpool’s radar, is also attracting the interest of Arsenal, Newcastle, Chelsea, Paris Saint-Germain and Barcelona.
New head coach Arne Slot has some obvious holes to fill in his squad in the coming transfer window. And should the Reds make any interest concrete, it would an introduction for Slot to the opportunistic transfer approach that has served his predecessor Jurgen Klopp so well in the past.