Advantage Liverpool: Financial constraints risk Chelsea losing £111m Caicedo chase to Reds

With Chelsea facing potentially huge consequences if they match Liverpool's £111 million bid for Moises Caicedo, the Reds may be the favourites to sign him.

According to financial analysis posted on Twitter by Mo Chatra, the delay in Chelsea's move to sign Caicedo is caused by the Blues being financially constrained by the Premier League.

Read the full thread from Mo as it perfectly explains the situation.

In short, Chelsea are already tens of millions of pounds short of breaking even with the Premier League's Profit and Loss Profitability & Sustainability Rules (PSR).

This means that any further infringements with overbidding on Caicedo could lead to sanctions, including a points deduction.

What does this mean for Liverpool's hopes of signing Caicedo?

Liverpool have already agreed an £111 million fee with Brighton to sign the 21-year-old midfielder and so unless Chelsea match or outbid the Reds, he will move to Anfield as Brighton will not lower their new demands.

Caicedo was previously believed to be available for around £100 million but Thursday evening's auction saw Liverpool raise that value with their £111 million bid.

Chelsea were supposed to match Liverpool's offer on Friday but are dragging their feet as they search for a legal way to outbid FSG but the longer the London club goes without reaching an agreement with Brighton, the more increased Liverpool's chances are of signing the midfielder.

Reading between the lines, Liverpool simply need to hold their nerve and hold out. If Chelsea cannot match their bid, he will proceed with his move to Anfield.

Klopp and his players travel to Stamford Bridge tomorrow in what will be a fascinating game amid the behind the scenes antics.

Whoever wins will have brief bragging rights but whoever signs Caicedo will have the last laugh.