Alexander Isak PSR truth emerges amid Arsenal and Liverpool summer transfer battle

Football finance expert Kieran Maguire has explained how Arsenal and rivals Liverpool would actually be able to afford the £150m-rated summer transfer of Alexander Isak from Newcastle United.

Even before his 23 goals for the Magpies this season - including the one that ended his club's 70-year wait for a trophy last month - Isak had been on Arsenal's radar.

But as the 25-year-old continues to find the net on a regular basis it would appear his list of suitors is only growing, all whilst Newcastle hold the power to increase his value.

Most recently reports have quoted Isak at a price of £150m for a cross-Premier League move this summer, which comes down to Newcastle's desire to price anybody out of a move.

Subsequent rumours would have us believe in this case they have been successful, with the likes of Arsenal and Liverpool becoming tied with other European stars in top form such as Viktor Gyokeres or Hugo Ekitike.

Mikel Arteta's hunt for a striker has yet to come to an end, which has been made blatantly obvious by injuries this season. Isak is the best of those potentially available, now the Gunners can revel in the explanation of how if they saw fit, they could in fact put all their funds into the Sweden international.

Speaking on The Overlap, Maguire said: "Both clubs (Arsenal and Liverpool) are in a very strong position because they are guaranteed Champions League qualification next season, so that is worth a minimum of £30 to £40m just the qualifying, plus the matches you will pick up during the season getting £4-5m per match.

"If you sign a player even for £150m, you spread that across five years it is costing you £30m plus the wages, let's say the wages, even at the top end are £15m [per year], you are talking £45m for one player [per year] - that is your entry fee to the Champions League."

The football finance also explained how in Arsenal and their Premier League title rivals' cases, they have both positioned themselves favourably in regards to Profit and Sustainability Rules (PSR) so that they would truly be able to rock Newcastle with a monster offer.

He continued: "Also we look at what Arsenal have done in recent years, their wage bill went down quite a bit, they had a lot of players who were on big contracts four or five years ago.

"Those players have now moved off and Arsenal have got wiggle room, Liverpool will have wiggle room potentially because Trent [Alexander-Arnold] is no longer going to be there and we could lose one or two players on top of that.

"They have all got scope to spend, but it is a case of he is 26 years old. It is his last big contract, clubs are also looking at potential movings later on in that player's career, that tends not to be the case when you get to 28 or 29."

Amid such interest, Newcastle are said to be keen to tie their No.14 down to improved terms. Unfortunately, their hopes have also reportedly taken a hit with Isak halting contract talks or any thought of his next move until after the season is completed.