FSG’s and jürgen klopp next move could boost Jude Bellingham’s hopes despite Real Madrid threat

FSG’s and jürgen klopp next move could boost Jude Bellingham’s hopes despite Real Madrid threat

Dave Powell assesses prospects after Real Madrid reportedly edge out Liverpool in race for Jude Bellingham

This summer will likely see the completion of one of the most talked about transfers in recent years.

Jude Bellingham, long a Liverpool target and the player seen as central to a needed Anfield rebuild, is set to make a decision on where to play his football from 2023/24, with some number of options on the table.

Liverpool were the team most linked with the 19-year-old England international, who shone in the Bundesliga for Borussia Dortmund for £25million after leaving Birmingham City for Germany in 2020.

But they weren’t the only ones interested in Bellingham, as Real Madrid are set to play for the central midfielder and Manchester City and Manchester United are considering their own options for a move.

On Monday, Athletic reported that Liverpool were “looking increasingly unlikely” to land Bellingham in the summer. While the report noted the club remained in contention, the suggestion that the Reds would fall behind in pursuit of the Dortmund ace stemmed from an unwillingness to engage in a bidding war which could escalate. step up and one that the current Bellingham Employers would do. love to see – and could trigger – provided they have their assets tied to a contract through 2025. Estimates of between £120m and £150m have made the rounds when determining how much it would cost to land the midfielder, although numerous outlets have suggested in recent months that Bellingham favors Liverpool. But given the potentially huge price tag and the fact that the Reds have no guarantee he can offer him Champions League football next season, it could be a decision that will end up being made for him.

Liverpool can afford to put on a big game for Bellingham. One of the key factors for Fenway Sports Group to seek investment in the club and recapitalize the business is that they can free up funds to support a transfer push this summer to avoid a major drop in cash flow.

Liverpool’s amortization costs (booking a transfer fee over the duration of the player’s contract) in their 2021/22 accounts for the year ending May 2022 show a value of £104m. That’s a figure around £4m less than last year and puts them fifth in the Premier League table. The difference between the Reds and third-placed Manchester City, whose 2021/22 amortization costs were £141m, is £38m. That £38m, for example, equates to a transfer fee of £190m on a five-year deal.

Liverpool’s model under FSG is to compete at the highest level while at least breaking even. Record sales of £594m for 2021/22 have generated a pre-tax profit of just £7.5m, showing the challenge football clubs face to make a profit and why the true value of the he increasing valuation of teams from year to year resides for owners, which is realized when they sell all or part of their stake in the club. FSG is looking to sell part of its stake in the club and has identified potential investors who could help, according to principal owner John W. Henry in an exclusive interview with ECHO earlier this month.

But this summer will require more than just Bellingham at Liverpool. In reality they need a minimum of two midfielders and a centre-back – and without the luxury of salable assets that will bring in a hefty fee, probably saying goodbye to the likes of Naby Keita and Alex Oxlade-Chamberlain on a free transfer, it will be a cost rebuild. significant.

Liverpool will need to be capped on where to go when it comes to landing Bellingham, as they have other needs to meet. The problem is that, especially for Real Madrid, without having to disperse so much next summer, and with the almost ingrained demand from fans to bring in world-class talent, they will be more willing to bow to what Dortmund wants, and this could prove the difference in the end.

Even Real can do it. In their latest published accounts for the 2021/22 financial year, the Spanish giants reported revenue of €721.5m (£631m), with pre-tax profit of €12.9m (£11. 3 million pounds). This fiscal year (2022/23) Actual budget revenue of €769.6m (£673.2m) of revenue.

It is the capital pile that the club is on that can make all the difference and that they can confidently rely on Champions League football next season to support not only their financial performance but also their competitive pitch that they can make use of. Bellingham. The club’s cash reserves fell from €122m (£106.7m) in 2021 to €425m (£371.7m) in 2022. This was largely due to the conclusion of a deal with US investment fund Sixth Street im May last year, which was signed worth around €360m (£314.9m) related to funding of the ongoing renovation of the club’s pitch at the Santiago Bernabeu.

Real also has an unused €354m (£309.6m) credit facility. Madrid’s improved outlook after a gloomy picture painted at the start of the pandemic comes from the fact that they were able to pull some ‘economic levers’ where they sold parts of the business to third parties and sold some future rights related to the Bernabeu to clear certain off-balance sheet debt securities.