Finance guru: Liverpool perfectly placed to ‘take advantage’ amid Chelsea update
Liverpool are perfectly placed to “take advantage” of the new financial fair play model because of FSG’s historic break-even policy.
So says finance expert Doctor Dan Plumley, speaking exclusively to Football Insider about Uefa’s overhaul of the profit and sustainability system.
Clubs will soon be allowed to lose £50million over a rolling three-year assessment period, compared to £25m under the current model.
But spending on transfers, wages and agent fees must now total no more than 70 per cent of a club’s turnover over the same period.
Before the start of the pandemic, Liverpool had made a profit in all but one financial year since FSG’s takeover in 2010.
Per The Athletic last Monday (28 March), FSG’s approach has won ardent admirers from some of the parties interested in taking over at Chelsea.
Plumley explains why the Boston-based firm’s model is the envy of other investors and lends itself well to the profit and sustainability framework.
“Pre-Covid they were already there or thereabouts in terms of the new framework,” he told Football Insider‘s Adam Williams.
“The current version of financial fair play is based on a break-even principle.
“This new one is based on wages in relation to turnover and acceptable losses are actually going to increase slightly, so they can take advantage of that.
“They are already set up to comply with the current regulations, so I can’t see them having any issues with the new rules when they do come in.“
Clubs competing in Uefa competitions have three years to adapt to the current regulations, which will be phased in from next season.
Liverpool face Benfica in the Champions League quarter-final first leg tonight (5 April).
In other news, pundit suggests Trent Alexander-Arnold could be snubbed by Liverpool after confirmed team news.