Liverpool to stay clear of big-money signings

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Liverpool to stay clear of big-money signings in January transfer window

Roy Hodgson will not target any marquee signings in the January transfer window as Liverpool's new owner, New England Sports Ventures, looks to put a stop to the profligate spending which it believes has hampered the club's progress in recent years.

 

By Rory Smith

 

Published: 7:00AM BST 27 Oct 2010

 

NESV is believed to have been concerned by the millions of pounds haemorrhaged on transfer fees and wages by the club in recent years as it examined Liverpool's finances as part of the due diligence process carried out before the £300 million purchase of the Anfield side was completed.

 

Under Rafael Benítez, Liverpool spent more than £230 million in six years on fees alone – though much of that was recouped in sales – while the purchases of the likes of Raul Meireles, Christian Poulsen, Brad Jones and Paul Konchesky totalled £25 million in Hodgson's first summer at the club.

 

Though NESV's takeover freed up £36 million a year of revenue that had previously been used to service Liverpool's £282 million debts to be reinvested into the club, and though its offer did make provision for an immediate injection of funds into the playing staff, the American consortium has made it clear it expects value for money, both from fees and salaries.

 

"We have to be smart," John W Henry, NESV's principal backer, who will assume a place on Liverpool's board, said after the deal was completed.

 

"We have to be more efficient. When we spend a dollar it has to be wisely. We cannot afford player contracts that do not make long-term sense. We have to be smart, bold, aggressive. It's a great challenge."

 

Henry will take an active role in football matters at Anfield, assessing both Hodgson's suggested transfer targets and setting budgets for contract renegotiations of players already at the club.

 

The 61 year-old has already expressed his concern at the wages earned by older players on long-term, high-value contracts.

 

NESV's approach – applied with great success at the Boston Red Sox – is likely to rule Liverpool out of the glamour signings which many fans hoped would follow the eviction of previous owners Tom Hicks and George Gillett.

Instead, the club's recent scouting activity suggests they intend to follow the Arsenal model – for which NESV has been keen to stress its admiration – or, perhaps more pertinently, institute on an informal basis the transfer policy employed at Manchester United, where premium fees are only paid for younger players with resale potential.

 

"At the Boston Red Sox, we invested a lot in management and the scouting system," said NESV chairman Tom Werner.

"We believe the foundation of any good sports club has to be the experience, valuation and understanding of scouting, so we will invest in that as well."

 

Those players assessed by Hodgson and his scouting team in recent weeks include Steven Defour, the Standard Liège captain and a long-term target for the Liverpool manager.

 

At 22, and around £12 million, Defour represents minimum risk for maximum reward.

Likewise Ibrahim Afellay, the PSV Eindhoven winger Liverpool whom have assessed on several occasions.

Already a Dutch international at 24 and heralded for several years as one of the brightest prospects in Europe, Afellay would fall within Liverpool's budget, while his wage demands would remain comparatively modest.

 

More expensive would be Eden Hazard, Defour's Belgian international team-mate, currently with Lille.

The 19 year-old has attracted interest from Barcelona, Real Madrid, Arsenal, Chelsea and United, and could cost as much as £18 million.

 

However, Liverpool believe they can tempt the player – who is likely to be advised by his agent to seek a move to a club where he will play regular first-team football – and Kenny Dalglish was watching when the French side played Levski Sofia in the Europa League last Thursday.

 

Hodgson will not be allowed to add any players, though, without first trimming the squad. Liverpool boast the fourth-highest wage bill in the Premier League – standing at £107 million in 2009, according to football finance analysts Deloitte – but find themselves marooned in 18th place in the table, having finished seventh in Benítez's last campaign.

NESV does not blame Hodgson for that poor performance so far this season, but rather interprets it as evidence that many of the squad do not warrant either their reputations or their earnings.

 

Henry's experience as a futures trader, as well as his noted obsession with both sporting and financial statistics, put him in a perfect position to analyse such information.

 

He is acutely aware that figures suggest that, with almost unerring accuracy, a club's league position is defined by their wage bill. That Liverpool's key statistics are so discordant suggests the money is not being spent wisely.

 

He is also a devotee of Sabermetrics, the statistical analysis of the value of baseball players, pioneered by Bill James and which led Henry to appoint Theo Epstein as a general manager of the Boston Red Sox in 2002 at the age of 28.

 

Epstein applied James's principles – which are designed to help poorer teams identify value-for-money acquisitions – to lead the franchise to two World Series with a squad largely composed of bargain purchases.

Initial impressions of his time at Liverpool suggest he retains his faith in the method.

 

Six deals that would not have happened under NESV regime

 

Fernando Morientes

The Spanish international, signed for £6.3 million as a 28 year-old in January 2005, failed miserably at Anfield, scoring just 12 goals in 61 appearances. NESV’s belief in signing young players would have precluded the deal.

 

Robbie Keane

Signed as a 28 year-old for £20.3 million in 2008, the Irish international would also have been judged by NESV to be too old to warrant such a premium fee.

 

Alberto Aquilani

Though the Italian international’s age (26) and pedigree would have still made him a legitimate target, concerns over his injury record would have ruled out a £17 million move for the Roma player, now on loan at Juventus.

 

Jamie Carragher

John W Henry may have been concerned by the sight of a 32 year-old being handed a lucrative two-year contract just before NESV completed its takeover.

 

Maxi Rodríguez

The Argentine international, age 29, came on a free transfer from Atlético Madrid boasting a fine pedigree, but his wages, believed to be around £70,000 a week until June 2013, may have discouraged NESV from such a long contract.

 

Paul Konchesky

A four-year contract for a 29 year-old – as well as a £5 million fee – does not match the profile of deal NESV believes can help Liverpool develop in the long-term.

 

 

I personally quite like this approach and the 3 names highlighted in the article are exactly the sort of players I would like to see Liverpool invest in.

[sh#t waffle]

It's a sensible attitude, and not one I have a problem with in the slightest. I do genuinely feel that we need a different manager to implement such a strategy long term though.

[Best Believe It]

http://www.liverpoolway.co.uk/forum/ff-football-forum/89314-how-many-new-players-do-we-need-areas-squad-need-strengthening-6.html#post2519118

[CWD82]

It's a sensible attitude, and not one I have a problem with in the slightest. I do genuinely feel that we need a different manager to implement such a strategy long term though.

 

It should be a club strategy implemented by the board with football people, like Kenny, having a say in the scouting side of things.

 

That way the manager can change and have input into the players he needs but if he's relieved of his position the club doesn't go into a nose dive and we have to start again.

[goatboy59]

Six deals that would not have happened under NESV regime

 

Fernando Morientes

Robbie Keane

Alberto Aquilani

Jamie Carragher

Maxi Rodríguez

Paul Konchesky

 

An extra year for one of our better modern servants is a concern, Dossena isn't. Or Johnson's wages. Or Voronin's. Or Degen's.

 

Riiiiiiiiiiiiiight.

 

This ain't going away any time soon then.

[Trucker Paddy]

We lost £8m on Robbie Keane in 6 months, £4m on transfer fee and 1 year salary pay off was another £4m.

Degan and Voronin both got 4 year deals worth £10m each that involved £2m each in sign ons, for 2 donkeys. That's £28m wasted on 3 players that conributed nothing to the team. Jamie Carraghers contract is a side issue when you see the money pissed away by the previous regiume

[The Special One]

We lost £8m on Robbie Keane in 6 months, £4m on transfer fee and 1 year salary pay off was another £4m.

Degan and Voronin both got 4 year deals worth £10m each that involved £2m each in sign ons, for 2 donkeys. That's £28m wasted on 3 players that conributed nothing to the team. Jamie Carraghers contract is a side issue when you see the money pissed away by the previous regiume

 

Shhhh! NET SPEND!

[goatboy59]

ps

 

Signing Morientes was absolutely the right thing to do, and few thought otherwise at the time.

 

A 28 yr old can still do amazing things on a football pitch.

[usernameunknown]

So we're not targetting big money signings but are convinced we can sign Lille's £18m Eden Hazard? Oookk.

[Major Tom]

ps

 

Signing Morientes was absolutely the right thing to do, and few thought otherwise at the time.

 

A 28 yr old can still do amazing things on a football pitch.

 

Maybe it's the money and length of contract that is the problem and less the age.

[Trucker Paddy]

ps

 

Signing Morientes was absolutely the right thing to do, and few thought otherwise at the time.

 

A 28 yr old can still do amazing things on a football pitch.

 

Was over the moon when he signed as I'm sure most of us where

[Trucker Paddy]

So we're not targetting big money signings but are convinced we can sign Lille's £18m Eden Hazard? Oookk.

 

It never once said that, the author implied it but no quotes, I'm sure there's £20m available in January but they want value, £2m for Arbeloa against £18m for Johnson been an example, or £10m for Alonso top class while £17m for aqualani, enough said

[goatboy59]

Maybe it's the money and length of contract that is the problem and less the age.

 

Let's hope so.

 

NESV’s belief in signing young players would have precluded the deal.

 

sounds a bit sweeping though.

[usernameunknown]

the author implied it

 

Obviously. Hence why I asked the question.

 

Jesus christ.

[Anny Road]

About time we stopped pissing money away on shite.

[Trucker Paddy]

 

Obviously. Hence why I asked the question.

 

Jesus christ.

 

My point is he's using quotes from an interview 10 days ago and putting a spin on it, nothing wrong there, but people are taken it as gospel

[goatboy59]

Gary McAllister and Markus Babbel were unavailable for comment.

[FidelMurphy]

If the standard of player we will be going for is Affelay and Defour I wouldn't have any problem with that. We really do need strengthening in January though at the very minimum a first choice standard striker.

[VladimirIlyich]

I think this approach is very sensible IMO and targetting young players is exactly the way to go.

 

I also think the title is misleading and value for money would have been a more accurate description.

[Hermes]

Looks like we may finally end the revolving door of mediocrity out/average in. Aurelio, Babel, Lucas, Ngog, Maxi - your days are numbered.

[TommyW]

question is who is going to make the decisions on what players are value or not? the manager or the owners?

 

Im sure Roy thought Konchesky was worth a 4 year deal, are the owners going to have a line set at 28 and say noone signs above that age? not workable in my opinion

[manchego]

Wasnt Carragher lucky to just get that deal through in time ?

[TheResonator]

It's good news if it's true, although I'd like to see us strike a balance with the way Arsenal operate. They've suffered in recent years for not spending big on a couple of occasions when maybe they should have - e.g they'd be a much better team with a top keeper and maybe a marquee holding mid.

 

I fully support going after young players, but I think you need a bit of age and experience in the squad as well. Having a 34 year old Carragher around won't be the worst thing as long as he isn't playing every week. If we can strike the right balance -- spending big on youngsters and using experienced players wisely -- I think that would be a very positive move.

[JohnnyH]

I think that article was designed to cause a little bit of worry, whereas it's actually filled me with confidence., This is exactly the type of club I want us to be. I always thought Arsenals league truimphs held much more respect then Utd or Chelsea buying the league.

[goatboy59]

It's blend and balance. By all means have a 'sliding scale' re fees and wages when it comes to the older players, but not ignore their impact and influence completely.

 

Sell-on value can be important but not compulsory. Someone like McAllister can do more than play, they can influence and be held up as a fantastic example to younger players in how to live as well as play.

 

At the risk of unleashing the usual shitstorm of snidiness, that could also apply to Carragher and maybe even Gerrard (it's always assumed he won't be here forever, I don't know why).