Sensible, but will it put off potential signings at Liverpool?

Liverpool's director of football Damien ComolliRoma goalkeeper Doni has revealed why he won’t be joining Liverpool this summer. He told Il Tempo:

“I have only received an official offer from Liverpool, but I could not accept those conditions. I would have had my salary cut by 60 per cent. After signing a five-year contract extension with Roma in 2008 and having given a knee for Roma’s cause I am unwilling to give away money.”

Doni is believed to be on €4m a year, meaning he would be on £28K a week at Liverpool. A reasonable amount for a reserve team goalkeeper you might think, but it shows that Fenway Sports Group will not pay over the odds for any player coming to the football club.

John W Henry expressed his concern when FSG first took over the club that the wage bill didn’t reflect the quality of players at the club, and now he is seemingly putting his principles into practice on new signings.

Over the full term of a contract, wages can cost just as much, if not more, than the transfer fee for a player, and if sources are to believed, the £1.5million agreed for Doni would have cost the club 10 times that over a three year contract.

It is a sensible strategy no doubt. Investing in players, in terms of transfer fees and wages, which can be compensated through shirt sales, success on the pitch and perhaps to sell on to another club, is a good way to go, but having such a strict wage structure will mean the Reds will miss out on players.

If it comes to a straight fight between Manchester City, Chelsea and Liverpool for a player in the future, the other two’s financial clout in regards to wages will blow the Reds out of the water, but it is something you will have to accept if you buy into Liverpool’s long term financial strategy.

Of course UEFA’s Financial Fair Play rules are having a big influence on FSG ’s thinking and Man City and Chelsea will surely struggle under these new regulations if they are enforced properly. FSG are certainly sticking to what they know in this area. In American sports, salary caps are used to make sure that no franchise gets an overly unfair advantage, and Henry stated that UEFA’s new rules were a big influence on them buying the club, as they believe it could level the playing field substantially.

It seems that they maybe going along the same lines as Spurs who have a cap of 70K a week on wages. It certainly hasn’t stopped Spurs getting into the top four, but there is uncertainty about how effective this will be when trying to compete with the likes of Manchester United, City and Chelsea in the transfer market in the future.

Living within our means is a good strategy and hopefully with a redeveloped/new stadium, greater commercial and TV revenues, the gap between the Reds and the top clubs will close in regards to revenue, and hopefully we can compete without a need from outside investment in the not too distant future.

Read more of David’s articles at Live4Liverpool
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