$30M profit on Luis Diaz says everything about Liverpool's transfer business

Luis Diaz is closing in on an $88 million (£66 million) move from Liverpool to Bayern Munich after he landed in Germany ahead of completing his medical.

The Colombian was given permission to depart the Reds' Japanese training camp yesterday, with Diaz having flown to join up with his new club. Once he has been checked over by Bayern Munich staff, the final touches will be rubberstamped on the switch.

In total, including all of the add-ons, Liverpool ended up paying FC Porto $58 million (£43 million) for Diaz. If the add-ons included in the deal that is sending him to Germany are triggered, then that will mean a profit of around $30 million (£23 million).

While losing Diaz will be a blow in terms of the quality of the Liverpool squad, it is undoubtedly a good price to have agreed. The Reds would have been happy to keep the player, who scored 17 goals last season, but at that valuation, they were right to cash in.

Diaz, during his time at Anfield, was never a really consistent player in the final third, though he is just coming off his most productive campaign, in which only Mohamed Salah and Cody Gakpo netted more often.

At 28, however, and with two years left on his current contract, Bayern Munich has committed to paying quite a large sum, even in the current market.

Getting a good price for its asset should be no surprise, though. Liverpool has shown itself capable of doing that for some time, not least under new sporting director Richard Hughes.

Since the former Bournemouth chief took over the role last summer, Liverpool has brought in around $240 million (£180 million) from player sales.

Last summer, by selling the likes of Fabio Carvalho and Bobby Clark, the Reds made a profit of around $65 million (£49 million), having only brought in Federico Chiesa during Arne Slot's first window at the helm.

That is exactly why the full context of the summer that Liverpool is having is required to put its big spending into perspective. Though it has spent big, this is no change in approach: the Reds are spending what they have earned.

That is exactly why a British record transfer deal for Newcastle United striker Alexander Isak is financially plausible for Liverpool, even after the capture of Florian Wirtz from Bayer Leverkusen for around $155 million (£116 million).

Though that transfer will depend on Newcastle's not-for-sale stance changing, Liverpool has the funds to complete a move should Isak be allowed to depart. After that, a center-back feels like a must as well.

Thanks to some good dealings when it comes to outgoings, though, it should be more than possible. While others spend much more recklessly, Liverpool — as the Diaz deal shows — is maximizing what it earns.

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