Trent Arnold to Real Madrid transfer could cause Liverpool £100m PSR problem

Liverpool could end up taking a significant hit in their plans to comply with the Premier League's profit and sustainability rules should Trent Alexander-Arnold leave for nothing

Liverpool's compliance with the Premier League's spending rules could be jeopardised if Trent Alexander-Arnold departs for Real Madrid on a free transfer.

Premier League clubs are restricted by profit and sustainability rules (PSR), which prevent them from recording losses exceeding £105m over three years, a figure that decreases by £22m for each season spent outside the top flight. The Reds were declared compliant earlier this year, thus avoiding any penalties such as point deductions or financial fines. Keen to stay within the spending regulations, Liverpool began the new year by making a substantial profit in the January transfer window.

They sold Fabio Carvalho to Brentford for £27.5m, netting a £22.5m profit on the compensation fee they paid Fulham in 2022, and Sepp van den Berg for £25m, who was signed from PEC Zwolle for just £1.3m in June 2019. This put Liverpool in a strong position for the new three-year PSR period, but they could miss out on a significant windfall if Alexander-Arnold moves to Real Madrid this summer.

Dave Powell, chief business of football writer for Reach PLC, suggests the club could have demanded up to £100m for the right-back. Instead, Liverpool will only save approximately £10m on their annual wage bill, reports the Liverpool Echo.

The football finance guru has sounded the alarm for Liverpool, warning that Trent Alexander-Arnold's potential move to Real Madrid could leave a gaping hole in the Reds' lineup.

"Should Trent Alexander-Arnold exit Liverpool this summer then there is a pretty big void for the Reds to fill, and one that hasn't had the benefit of a big slice of incoming funds from a sale to aid it," said Powell.

The expert highlighted the full-back's importance, noting, "He is, after all, one of the world's best in his position, has a unique skill set that has been so instrumental in Liverpool's success, and he is 26, meaning he has plenty of road left to travel and in his prime. Pinning down how much a player earns often involves a considerable amount of guesswork."

On the financial side of things, Powell added: "But by using the most widely reported figures, sums of around £180,000 to £200,000 per week seem to be in the ballpark for his weekly wage. That would put him around the £10million mark for the year."

He also pointed out FSG's likely strategy post-Alexander-Arnold, saying, "Given the way that Liverpool owners Fenway Sports Group traditionally operate in the market it is likely that they will look for someone a little younger to come in and fill that void, and that will mean that the wage outlay will likely be significantly cheaper."

The situation is further complicated by the nature of the player's departure, as Powell explained: "However, Alexander-Arnold would be leaving on a free transfer, and being 26 and moving to a club overseas would mean that Liverpool get no compensation for his services, despite the fact that they offered him a new deal and he has been in the Reds system since he was a child.

"Had there been two or three years on his deal then the club would have been looking at a likely £80million to £100million price tag, and that would have been pure profit given the fact he had no book value. But would they have been looking to sell him? I would argue not.

"The club lost leverage by letting it drag on into his final year and to the point where other clubs could speak to him, but what is often overlooked in these matters is the personal preference of the players themselves. If Alexander-Arnold's wish had been to test the market and see if he wanted a move then he has more options as a free agent, and it is more financially beneficial.

"Quite what has transpired behind closed doors we do not know, and it is rumour and conjecture at this point. But for Liverpool, while they may be able to shave £2million or £3million off an annual salary for a right back that can eventually step up to be the man, they will still face the reality that such players are likely to be £35million to £50million in the current market.

"That is a price tag that would add an amortised cost, at the top end, of £10million per year. Liverpool have the financial flexibility to manoeuvre in the summer, and they will have already made headway on this being a potential outcome for the club.

"Replacing Alexander-Arnold won't be cheap, though, and clubs know that Liverpool have a real requirement for this summer and they will feel the need to act. That means the price point might be higher given that clubs know they have pressure, necessity and the money to get a deal done."

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