Liverpool doesn't yet know exactly what version of 'Financial Fair Play' it will be governed by in the coming seasons, with the Premier League set to vote on a change. But whatever system of regulation is in play, the significant wage reduction the club has made is bound to give it more transfer headroom in Arne Slot's first summer.

The league has agreed in principle to a new approach which caps spending on transfers, wages and agent fees at 70 per cent of a club's revenue. There's also a backstop measure of 'anchoring', which means nobody can spend above a certain multiplier of the least lucrative team's broadcast revenues.

That will be formally voted through at the AGM, which should also determine when the new regulations come into force. Up to now, Liverpool has simply had to avoid making a specific amount of loss over a rolling three-year period, with Everton and Nottingham Forest falling foul of those rules.

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Whichever version of the rules governs 2024/25, Slot has been handed something of a boost. Liverpool has made significant salary savings through the releases of Joël Matip and Thiago Alcântara.

Of course, that also means Slot will not have two world-class players at his disposal. But both are notoriously injury-prone, and combined for one appearance in 2024. Liverpool should be able to reinvest some of the money in younger, more reliable options.

Per Spotrac, Liverpool will be saving in the region of $382k (£300k/€352k) per week. Thiago has been earning an eye-watering $256k (£200k/€235k), placing him among the club's top earners, while Matip has allegedly been on around half that amount.

Based on 2022/23 figures, Liverpool would have been comfortably within the anchoring measure, had it been in force at the time. However, the limit of spending 70 per cent of revenue is expected to be the bigger constraint in practice — Slot will benefit from Champions League income, which will alleviate a lot of the pressure, and the departures of Matip and Thiago will make things even easier.

It has to be said that a return to Europe's top table is also likely to trigger performance bonuses. But while that will somewhat eat into the savings, Liverpool has certainly trimmed its wage bill ahead of Slot's arrival.

Liverpool.com says: It's hard to anticipate what Arne Slot's first transfer window could look like. Jürgen Klopp has left behind an accomplished squad, and a warning not to forget the young talent coming through the ranks.

At the same time, Liverpool did ultimately fall just short of challenging for the top prizes. A new recruitment structure assembled by Michael Edwards will no doubt be looking to make some tweaks, and while it's difficult to imagine anyone coming in on the kind of wages Thiago earned, there should now be significant wiggle room.