By Steven Northover

Despite unprecedented  investment into the squad last summer - to varying degrees of success - Liverpool have not broken any Profit and Sustainability Rules (or PSR). 

PSR began at the start of the 2015-16 season, and followed a similar format as to UEFA's Financial Sustainability Regulations that had started four years earlier, in essence to curtail excessive spending amongst the League's largest teams, where in clubs would have to submit their finances at end of the the calendar year, and make a loss no greater than £105 million over a rolling three year period. 

FSG's Safe Approach

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Notable breaches of PSR in the past have saw Leicester City, Everton and Nottingham Forest fall victim, with all three clubs ordered to pay a fine, and/or face a point deductions.

The idea of a set of rules that would become PSR has been around for a while - certainly since the early 2000s - and Liverpool's owners, Fenway Sports Group, were running the club on a ‘self sustaining' model that reflected the club's League and European success. 

As a result, Liverpool have never been in real danger of breaking any sustainability rules since PSR introduction. 

Comfort Despite Splashing Out

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Indeed, the Reds ‘’frugal’ strategy in the transfer market is the main reason that the club are in such rude financial health, not to mention consistent performances both in the league and Europe. 

So, even though Liverpool have spent over half a billion pounds in the Summer, with Hugo Ekitike and Florian Wirtz coming in for a combined £270 million as well as Alexander Isak for £125 million on Deadline Day, the club is still in a comfortable financial state - and are likely to spend more in the Summer, and replacements for a number of players (notably Virgil Van Dijk and Mohammed Salah) needing to be sourced in the near future, Liverpool remain in strong position to find those players, if and when they are needed.