Liverpool are right not to invest heavily in transfers this season as their revenues are set to dip below £500million and continue to fall in 2021.
That is according to finance guru and Football Insider columnist Kieran Maguire, speaking exclusively after Jurgen Klopp warned of the financial implications of not finishing in the top-four this season.
Quoted in The Daily Mirror, the 53-year-old said: “The main reason for qualifying for the Champions League was always for financial reasons. For the club, it’s about finances and this year is no different. Of course, it will be very important, absolutely.”
This site also broke news in February that the club are expected to announce that annual revenues have dropped below £500m.
Liverpool have faced staunch criticism for failing to capitalise on last season’s title triumph by investing significantly in new players.
Maguire claims Liverpool’s prudent approach is absolutely the right one to take amid his forecast that their finances will get worse before they get better.
He told Football Insider correspondent Adam Williams: “In a non-Covid year, the owners would have invested more. If you take a look at Liverpool, they have broken even on a day-to-day basis on five out of the last six years.
“In 2020, they will have made operational losses as a result of Covid. In 2021, those losses are going to be amplified and that’s when they haven’t sold players of a significant value.
“But it’s not just Liverpool. Every club has cut back on expenditure with the exception of Abramovich at Chelsea. And they were coming out of a transfer ban.
“So what Liverpool have done in the market makes sense. It’s a logical business decision.”
Thiago and Diogo Jota were the two headline arrivals in the summer but injuries have prevented either from making a significant impact.
Hopes for the season now rest on the Champions League and Liverpool will net a £150million windfall if they win the competition, as revealed by Football Insider.