Liverpool PSR status explained after breaking transfer record twice last summer

All Premier League clubs have avoided breaching profit and sustainability rules for last season, with Everton and Aston Villa selling women's teams to ensure compliance

Florian Wirtz is unveiled as a Liverpool player (Image: Liverpool FC/Liverpool FC via Getty Images)

Every Premier League club has managed to avoid falling foul of the league's profit and sustainability rules for the most recent season including Liverpool despite a huge outlay on new signings

Premier League sides were required to submit their accounts for 2024/25 by 31st December. Clubs are permitted to record losses of up to £105million across a rolling three-year period.

According to The Times, the Premier League's financial team has confirmed that all clubs have adhered to PSR regulations. They appeared to manage this without the frantic flurry of transfers witnessed in June 2024, when clubs scrambled to meet the previous year's requirements.

Some clubs found themselves in a markedly different position. Having signed only Federico Chiesa before clinching the league title in 2024/25, Liverpool embarked on a busy summer of recruitment.

Jeremie Frimpong, Milos Kerkez, Armin Pesci and Florian Wirtz all made their way to Anfield as the Reds shattered their transfer record. The Merseyside club had the financial flexibility to act following a period of considerable restraint.

Similarly, Manchester United had room to manoeuvre with deals immediately after the Premier League season concluded. The agreement to sign Matheus Cunha fell within the 2024/25 financial year for accounting purposes.

That means last season's expenditure on players exceeded £340million despite their Premier League struggles. The sum represents the third-largest single-season outlay in the division's history.

United's PSR flexibility stems from the Premier League's calculation being based on the financial results of Red Football Limited, rather than Manchester United PLC.

Everton and Aston Villa both offloaded their women's teams ahead of last year's June deadline in order to bolster their finances and ensure compliance.

Certain substantial costs unrelated to football operations could be excluded. Losses were considerably lower than initially expected, and The Athletic reported that United could post losses exceeding £140m in 2024/25 whilst remaining PSR compliant.

Whilst Aston Villa look set to satisfy Premier League regulations, they may face a fine from UEFA. The European governing body also has the power to impose financial sanctions.

A substantial fine is anticipated after the club violated UEFA's squad cost regulation. Financial sanctions are levied if a club's expenditure on player salaries, transfers and agents exceeds 70 per cent of its revenue.