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Prior to the summer reshuffle in Liverpool’s backroom staff, the club had already undergone several changes at the executive level, bringing in Michael Edwards and Richard Hughes to lead the club and oversee its next chapter as they looked to build “Liverpool 2.0.”

One of the biggest decisions facing Edwards and Hughes was replacing the charismatic Jurgen Klopp.

Klopp had cemented his place among the clubs greatest managers, restoring Liverpool to the upper echelons of European football and winning every trophy available.

Ending the 30-year wait for a Premier League title was likely the cherry on top, but the manager also took Liverpool to three Champions League finals during his tenure.

Replacing Klopp was always going to be one of footballs toughest challenges, but Liverpool turned to Dutch manager Arne Slot, who has, so far, proved to be the perfect fit.

Slot has taken Liverpool to the top of both the Premier League and Champions League tables.

Slot joined the club in the summer with his own backroom staff, but Liverpool were modest in the transfer market.

Having revamped their squad the previous season under Klopp, the Reds only signed Italian forward Federico Chiesa.

Sticking with the current squad has, so far, proven to be an inspired choice, but with Liverpool still in the running for all competitions, it is likely they will look to strengthen in January.

How Much Can Liverpool Spend in January?

According to TBR Football, who spoke to Kieran Maguire, a football finance lecturer at Liverpool University, the Reds have enough room under the Profit and Sustainability Rules (PSR).

PSR, formerly known as Financial Fair Play (FFP), allows clubs to lose up to £105 million over a rolling three-year period.

The report also notes that Liverpool have been one of the few clubs to remain profitable over the last decade, meaning they have ample PSR room and can enter the transfer market without fear of breaching FFP regulations.

Speaking to TBR Football, Maguire said: “Liverpool are run extremely well both on and off the pitch.”

“It could be that there are other offers being made to players that could significantly increase the overall wage bill, so a deal with Diaz is on the backburner.”

“But in my view, they are not in a delicate PSR situation?

They are far too well-run for that to be the case.”

“One of the central tenets of FSG is that they don’t put themselves in a position where they have to do something; they want to take advantage of opportunities when they arise.”

“They have a great deal of latitude in terms of their total payroll cost.”

“They have a net loss of £18 million over the last three seasons, with one of those years affected by Covid.”

“If you look at infrastructure costs, they were £38 million.”

“Then you add back their academy costs, which for a club like Liverpool are probably £15-20 million per year, plus the costs of the women’s team.”

“They are in PSR profit and have the capacity for a 105 million pounds loss, so they have a lot of headroom—around £145 million based on those figures.”

Therefore, should Arne Slot and Liverpool decide to enter the transfer market this January, the Dutch manager would have roughly £145 million to spend without the club breaching PSR or FFP rules.

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