Liverpool will miss out on a big payday if Trent Alexander-Arnold joins Real Madrid on a free transfer
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Trent Alexander-Arnold of Liverpool looks on during the UEFA Champions League 2024/25 Round of 16 first leg match between Paris Saint-Germain and Liverpool FC at Parc des Princes on March 05, 2025
Trent Alexander-Arnold during Liverpool's clash against Paris Saint-Germain(Image: Photo by Liverpool FC/Liverpool FC via Getty Images)
Trent Alexander-Arnold could dent Liverpool's hopes of complying with the Premier League's spending regulations if he joins Real Madrid on a free transfer. The 26-year-old defender faces an uncertain future at Anfield, with his contract set to expire in the summer.
Under profit and sustainability rules (PSR), clubs in the English top flight are not permitted to record more than £105m in losses over a three-year period; a figure that's reduced by £22m for every season the team isn't in the Premier League.
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Earlier this year, the Reds were declared compliant, avoiding any sort of punishment, such as a point deduction or financial penalty. Eager to remain in line with spending rules, Liverpool kicked off the new year by making a significant profit in the January transfer window.
The Merseyside outfit sold Fabio Carvalho to Brentford for £27.5m – a £22.5m profit on the compensation fee they paid Fulham in 2022 – as well as Sepp van den Berg for £25m – who cost just £1.3m to sign from PEC Zwolle in June 2019. Liverpool made a good start to the new three-year period of PSR, but they're set to miss out on a big payday if Alexander-Arnold joins Real Madrid this summer.
Dave Powell, the chief business of football writer for Reach PLC, believes the club could have demanded up to £100m for the right-back. Instead, Liverpool will only save around £10m on their annual wage bill.
"Should Trent Alexander-Arnold exit Liverpool this summer then there is a pretty big void for the Reds to fill, and one that hasn’t had the benefit of a big slice of incoming funds from a sale to aid it," said the football finance expert. "Alexander-Arnold’s departure to Real Madrid is a blow, and it is no secret that the club and Arne Slot wanted to keep him as part of the team.
"He is, after all, one of the world’s best in his position, has a unique skill set that has been so instrumental in Liverpool’s success, and he is 26, meaning he has plenty of road left to travel and in his prime. Pinning down how much a player earns often involves a considerable amount of guesswork."
Powell added: "But by using the most widely reported figures, sums of around £180,000 to £200,000 per week seem to be in the ballpark for his weekly wage. That would put him around the £10million mark for the year.
"Given the way that Liverpool owners Fenway Sports Group traditionally operate in the market it is likely that they will look for someone a little younger to come in and fill that void, and that will mean that the wage outlay will likely be significantly cheaper.
"However, Alexander-Arnold would be leaving on a free transfer, and being 26 and moving to a club overseas would mean that Liverpool get no compensation for his services, despite the fact that they offered him a new deal and he has been in the Reds system since he was a child.
"Had there been two or three years on his deal then the club would have been looking at a likely £80million to £100million price tag, and that would have been pure profit given the fact he had no book value. But would they have been looking to sell him? I would argue not.
"The club lost leverage by letting it drag on into his final year and to the point where other clubs could speak to him, but what is often overlooked in these matters is the personal preference of the players themselves. If Alexander-Arnold’s wish had been to test the market and see if he wanted a move then he has more options as a free agent, and it is more financially beneficial.
"Quite what has transpired behind closed doors we do not know, and it is rumour and conjecture at this point. But for Liverpool, while they may be able to shave £2million or £3million off an annual salary for a right back that can eventually step up to be the man, they will still face the reality that such players are likely to be £35million to £50million in the current market.
"That is a price tag that would add an amortised cost, at the top end, of £10million per year. Liverpool have the financial flexibility to manoeuvre in the summer, and they will have already made headway on this being a potential outcome for the club.
"Replacing Alexander-Arnold won’t be cheap, though, and clubs know that Liverpool have a real requirement for this summer and they will feel the need to act. That means the price point might be higher given that clubs know they have pressure, necessity and the money to get a deal done."