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Mohamed Salah might be leaving for nothing, but his departure sets Liverpool up for a nine-figure FFP boost for next season.
We were all a bit baffled to hear that Salah will leave Liverpool on a free transfer despite having a year remaining on his contract at Anfield. But fans will quickly get over it after hearing just how much space his exit leaves us in the realm of football finances.
To explain more, I chatted to Rousing The Kop’s football finance expert Adam Williams, who lays out the finer details of Salah’s departure with the new Squad Cost Ratio (SCR) regulations kicking in next season.
In a wide-ranging analysis on Liverpool’s finances, Williams has said that Liverpool will have “£100m-plus” in SCR headroom going into 2026-27.
What is your all-time favourite Mohamed Salah moment at Liverpool? ⚽
Credit: Liverpool FC/Getty Images Liverpool’s financial wiggle room heading into next season
Williams began by outlining the changes that are set to be implemented across the Premier League at the start of next season. For a Champions League regular like Liverpool, it won’t catch them off guard.
He begins: “SCR is the Premier League’s new system replacing the old PSR regime. With PSR, losses were capped at £105m over a rolling three-season basis, with allowances for a few different kinds of spending, like academy, women’s team and so on.
“Liverpool never came close to having any issues under PSR because the club so rarely lost money. Since FSG arrived, they have more or less broken even. In layman’s terms, everything Liverpool have spent on transfers, wages and other operating costs, they have earned. The only exception is spending on infrastructure like the stadium and training ground, which was exempt from PSR anyway.
“The new system is different in that it looks at spending on the squad as a percentage of revenue over a single season, rather than profit or loss over three seasons.
“However, Liverpool are already well-versed in this model because a similar one is in place for clubs in UEFA competitions. There, Liverpool are allowed to spend no more than 70 per cent of revenue plus player sale profits.
“So let’s say Liverpool earn £700m plus £100m in player sale profits – they can then spend £560m on wages and amortised transfer costs in a calendar year. And because UEFA’s threshold is 70 per cent whereas the Premier League’s is 85, Liverpool are virtually guaranteed to have no issues with SCR at Premier League level.”
Photo by Billie Weiss/Boston Red Sox/Getty ImagesThe financial impact of losing Mo Salah
Salah’s wages are some of the highest in Europe, so his departure frees up significant space, and his 2017 fee is almost paid off.
Williams explains: “In terms of Salah, he still has some amortised book value remaining, which will have to be written off and recorded as a loss for Liverpool. But that will be a very, very negligible amount because he’s been at the club so long and his amortised value is very close to zero. Agents’ fees are included too, however, so let’s call it £2m. For SCR purposes at UEFA and Premier League level, that would count as player costs.
“But the loss there is offset several times over by his wages, which are probably close to £500,000 per week when you factor in employers’ National Insurance, image rights and so on. So you’re saving the best part of £25m in wages. Take away the write-off and you’ve got a net SCR benefit of £23m. There’s some margin for error there, but that won’t be far off the saving for SCR purposes on this season compared to next.”
That’s a welcome boost, but the Egyptian is one of the most recognised names in the sport, and Liverpool are undeniably going to take a commercial hit.
He continues: “I think one thing that has gone under the radar, however, is how Salah leaving will affect Liverpool commercially. He’s an Adidas athlete, which has synergies with the kit deal.
“And he’s one of the most famous and idolised people in the Arabic-speaking world, which yields massive benefits with sponsors. Those issues are harder to quantify financially, but it is a factor that Liverpool will be considering over the long term.”
Which players should Liverpool target to replace Mohamed Salah this summer? 🤔
A seven-man shortlist has already been reported:
Desire Doue Bradley Barcola Nico Williams Yan Diomande Anthony Gordon Jarrod Bowen Michael Olise
Credit: Izzy Poles/AMA/Getty Images The £100m boost coming Liverpool’s way
Salah’s wages coming off the books will somewhat negate the commercial losses we mentioned, and it positions Liverpool to be very flexible with their squad next season.
Williams estimates that the Reds can expect room of over £100 million in their SCR capacity.
He concludes: “They have loads of room with SCR. Wages were £427m last season and will probably be about the same this term, with lower bonuses for less success off the pitch offset by the signings that they made. Maybe 75 per cent of that is first-team costs, which are the ones you consider for SCR.
“Amortisation meanwhile was £117m. That too will have increased, but so too will profit on player sales, which increases your SCR capacity. Whichever way you cut it, they’ll have £100m-plus in SCR capacity going into next season.”
Salah’s departure will sting, but Liverpool are in a strong position to recruit aggressively in the summer and hopefully go some ways towards filling the void he will inevitably leave behind. Steven Gerrard thinks a top 3 winger is needed, but there is no shortage of elite options.
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