How can Liverpool afford Isak after spending so much?

Liverpool have spent more than £170m on players this summer yet are interested in adding Newcastle United’s Alexander Isak to their ranks.

With a package to sign Isak thought to cost up to £130m, it would take their summer spending to £300m.

The Premier League champions’ spending is a significant jump up from last year, when they shelled out only £10m on Italy winger Federico Chiesa and £25m on Georgia goalkeeper Giorgi Mamardashvili in the summer window.

BBC Sport understands that, while Liverpool have explored other centre-forward targets, they have made a move towards a deal for Isak in recent days.

Liverpool have signed midfielder Florian Wirtz in a potential British record £116m deal this summer and paid £40m and £30m respectively for full-backs Milos Kerkez and Jeremie Frimpong.

Liverpool’s income has been boosted this year thanks to several key factors.

They received £175m in prize money for winning the Premier League; last season was the club’s first full campaign with an expanded Anfield Road End and a higher capacity; and from 1 August they have a new kit deal with Adidas which some reports value at £60m per season, more than their current partnership with Nike.

Those factors, combined with comparatively low transfer spending in previous windows, mean Liverpool find themselves well within the Premier League’s profit and sustainability rules (PSR) which limit clubs to losses of £105m over three years.

“Liverpool are a super smart football club,” football finance expert Kieran Maguire told BBC Sport.

“They’re in an incredibly strong PSR position. Out of the top six clubs, they’ve spent the least in this three-year cycle – only £325m – and that includes their signing of Florian Wirtz.

Over the past three seasons Liverpool have had a net transfer spend of -£4m, £96m and £53m respectively according to Transfmarkt.

For context, Manchester United have had a net spend of £119m, £133m and £190m over their past three campaigns.

“Liverpool have been outside the top-10 spenders on player signings since 2019, but their model is a classic case of being smarter rather than bigger,” said Maguire.

“Liverpool’s model has been to ignore the noise and only buy a player if they truly improve the squad. It’s a Moneyball, more analytical approach.

“Chief executive Michael Edwards does a brilliant job and he never buys players because of external pressure. He doesn’t get jittery when fans call for more signings.

Newcastle have maintained throughout the summer that their top players – and Isak is certainly one of those – are not for sale.

Indeed, like Liverpool, Newcastle – who are owned by Saudi Arabia’s Public Investment Fund (PIF) – are in a comfortable PSR position.

Isak has three years left on his contract, so the Swede would most likely have to actively push for a move.

Apart from Liverpool, few other clubs in the market for a striker could afford Isak’s reported £130m price tag.

“As the most profitable club in Premier League history, Arsenal could easily spend over £200m in the window and have no PSR concerns,” said Maguire.

Despite Isak having been linked with a move to Arsenal, the Gunners are instead expected to reach a full agreement with Sporting for the 73.5m euros (£63.5m) signing of striker Viktor Gyokeres this summer.

Manchester City are unlikely to be in the market for a striker, with Erling Haaland and Omar Marmoush under lengthy contracts.

It seems doubtful that United would be able to afford Isak’s fee without significant player sales, having missed out on Champions League football next season.

Chelsea have bought strikers Liam Delap and Joao Pedro this window.