Liverpool s transfer market has been frequent recently. Why are they willing to spend money to buy players?

Liverpool's recent big signings and transfer rumors have aroused my interest. I finished my work yesterday and had nothing to do in the evening to check the 2023/2024 season financial report and found some interesting things.

Financial report is like this.

The revenue on the match day increased by £22 million to £102 million; business revenue increased by £36 million to £308 million, with a total revenue of £614 million.

However, there is a relatively interesting conclusion, which is that the pre-tax loss is 57 million pounds. The total revenue increased, but it was a loss, which was a bit inconsistent with Liverpool's current situation.

The reason is related to excessive management investment, excessive salary of players, and reduced media broadcast income.

As the team reached an agreement with well-known brands such as UPS, Google Pixel, Peloton and Orion Innovation, Liverpool's economic income has improved a bit in the past two years.

In addition, the team's performance is stable, entering the Champions League and winning the league again, starting to control the team's salary costs, and the team's income will gradually increase. If nothing unexpected happens, Liverpool will not lose so much in the 2024/2025 season, and the financial trend will improve.

Perhaps considering the recent improvement in finance and the gradual stability of team operations, the management has also strengthened its confidence and can feel that the club will develop in a long-term positive channel, making them willing to spend a lot of money to attract players.

Flynnpon, Wilz, Zhekelais and others are all on the signing list and they also see their ambitions.

This is a bit of the "achievement theory" proposed by AC Milan Maldini when he was the technical director. When Maldini was in office, his philosophy was to "exchange results for rewards", which was to ensure the team's competitive level, always be stable in the UEFA Champions League qualification zone, make more money when participating in the UEFA Champions League, ensure stability in the league, achieve the practice of making money for a long time and using competition to support the team.

In simple terms, it means "large investment gets high returns". The more investment, the greater the money you make, which is also the essence of investment.

With the premise of stable results and excellent coaching team and players, there is no problem with this kind of operation and planning. As long as you can ensure that you don’t fall behind in your performance and make money every year, the transfer fee for the signing can also bring back the cost.

Besides, your signings are all paid in installments, not in one lump sum. Don’t be scared by the record 120 million. Most teams buy players in installments. For example, if you pay 20 million in the first year, 30 million in the second year, and 35 million in the third year, you will be paid in this way.

Every year, you actually find that there are not so many, and the team can still afford it, and can also do it under the premise of fiscal health and stability.

I think Liverpool's senior management has definitely considered the team's financial structure, which can be stable and the budget can hold on, so there are big moves, which is completely different from the previous actions.

It is also understandable from this perspective.

But that being said, this is not necessarily a worry-free operation. Large investments are used to make high returns, as long as you have to enter the Champions League, and the lineup is stable for a long time and will not cause trouble. It must be based on the team's performance.

If you have poor performance in a certain year and cannot enter the Champions League, your income will be greatly reduced and the team's economic situation will be in short supply. If you sign high salaries with players many times before and your salary level gradually increases, this will also be unsatisfactory for the team's development. There must be risks behind the big deal.

I have been chatting with some Liverpool fans these two days. They are also relatively calm about the team's introduction of Wilz and others, and do not say they are very happy.

Because fans are well aware of the importance of "financial health", after playing so many FM football manager games, many fans are old and know how to manage the team to last forever. If you spend money irrationally, the team will still not be able to live well.

I think based on the current situation, I can keep waiting and watching. Considering the positive factors of the reform of the Champions League, the winning of the league, and the rising revenue of TV broadcasts, occasionally "luxury" is not a big problem.

And when Werz was introduced, he obviously had the idea of ​​replacing Salah. Salah has only been renewing his contract with the team for two years. After a while, he will have to leave the team as he gets older. Wirtz's arrival will also mean to take over.

Considering that there are some factors in competitive aspects, the motivation and reasons are reasonable.

We can give Liverpool a little more patience and see how they will develop in the future.