Liverpool are in a curious position in the transfer market. The Reds are one of the most attractive sides in world football with players wanting to play under Jürgen Klopp and be a part of this record breaking squad. The club have also just signed a record breaking kit deal with Nike. However, the impact of the global health crisis has thrown the side’s recruitment plans into doubt. Liverpool could see their transfer plans benefit from the change in the Champions League format this season.
New financial reality
Liverpool are currently facing up to a new financial reality. The Reds had previously been in the healthiest financial position they have been in in years, posting record profits and signing monumental kit deals before the global health crisis caused unprecedented losses.
Playing behind closed doors has led to the club missing out on tens of millions in matchday revenue with other income streams impacted also.
These losses have caused the club to adjust their transfer plans for the summer with Jürgen Klopp admitting that they cannot afford any big signings.
Late signings expected
Respected journalist James Pearce recently claimed on The Athletic’s Red Agenda podcast (06/08/20) that ‘what business is done by Liverpool will happen later in the window’.
This delayed transfer business is likely down to the club waiting to see how next season is likely to shape up in terms of fan attendance and how they expect their finances to look as a result.
The club have been cautious in the market prior to this season, the club’s current financial uncertainty will only emphasise this cautious approach.
August Champions League benefits Reds
Given that Liverpool are likely to leave their transfer plans until later in the window the August Champions League benefits the club.
One of the players that Liverpool have been consistently linked with is Thiago Alcantara. The Spaniard’s club, Bayern Munich, are tipped to go the distance in this year’s competition – last night they completed a 7-1 aggregate thrashing of Chelsea.
The German giants are unlikely to sell any of their star players before the end of the Champions League – if they were prepared to sell then the Reds could see themselves gazumped by other interested parties such as PSG.
Munich being in European competition until the end of the month gives the Reds time to plan their move and further assess their financial situation for the coming year without having to worry about rival suitors.