Liam Manning to get £41.5m spending limit as Norwich City’s PSR and ‘do-or-die’ dilemma explained

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It seems Liam Manning is poised to become the next Norwich City manager, so we’ve taken a deep dive into the financial situation at Carrow Road to see what kind of budget he will be working with.

It has now been close to two months since Norwich parted ways with Johannes Hoff Thorup, and the club has been on a rollercoaster ride in their pursuit of a new manager.

Jack Wilshere looked set for the role, before interviews with Gary O’Neil and Pep Lijnders in recent days, but now, Liam Manning looks destined to depart Bristol City and return to his native Norfolk.

As we await the official announcement, Norwich fans are likely looking ahead to the summer transfer window and what kind of business Manning will be able to carry out for the Canaries.

So, EFL Analysis spoke to finance expert Adam Williams about the situation there, and how it compares to Bristol City’s finances.

• READ MORE: Bristol City must end 45-year issue in 2025/26, but Wrexham will be even more desperate for Championship success

Comparing Bristol City and Norwich’s financial situations

We are led to believe that Manning views Norwich as better-equipped to challenge for promotion compared to Bristol City.

According to Adam Williams, though, Manning may have misjudged things. He said: “For my money, Bristol City are a bit of a sleeping giant in the Championship. They’ve got the biggest revenue outside the non-parachute payment clubs.

“The rise in their commercial income in recent years in particular is pretty remarkable. At £25m, it was the highest in the Championship by some distance in the last financial year and £10m higher than Norwich’s.

“That’s accommodated a wage bill which has been above £30m for six seasons in a row now. At £35m, they pay players and staff more than other non-parachute payment club based on the figures we’ve got to hand.”

As for what Manning could expect if he were to stay at Ashton Gate, Williams believes Bristol City could and would back him in the transfer market.

He added: “They have had to cut back in terms of their net transfer spending in a few recent seasons because of FFP. But they only lost £3m last year, which will give them leeway to spend again this summer if the owner sanctions it.”

“I think they have maybe underperformed when looking at the financial figures alone. Had Manning stayed, I imagine he’d have got a relatively healthy budget. But what he’s been offered at Norwich may well give him more leeway to start his own squad cycle.”

• READ MORE: Jack Wilshere breaks silence after leaving Norwich City and reveals reason behind his decision

Norwich City should be comfortably within PSR limits for 2025/26

So, what can Liam Manning expect at Carrow Road, then? Well, it sounds like there is definitely going to be room for the incoming manager to spend in the market, though just how much will depend on the imminent sales of Borja Sainz and Josh Sargent.

Williams said: “At Norwich, parachute payments ran out in 2024-25. That’s partly why we saw a lot of big earners leave and more use made of the international market, where there are bargains to be had. They’ve done a pretty good job at reducing the wage bill in the last two financial years and they’ve kept their financial losses relatively modest with player trading.

“In terms of PSR, they will be back at the £41.5m limit for Championship clubs by now as they’re in their fourth season post-relegation. There won’t be much trouble there. I don’t think that is going to stop them spending, especially if the likes of Sainz and Sargent leave for decent fees.

“I’m fairly confident they’ll end the window with a positive net spend with the sales, but I also think they’ll be able to reinvest a decent chunk of that cash. But the long and short of it is that the budget is going to come from sales primarily.”

In many ways, sporting director Ben Knapper and the rest of the Norwich City hierarchy really need to get things right this time. The appointment of Thorup didn’t work, for one reason or another, and if things go wrong again in 2025/26, the Canaries risk being left behind.

The positive for those at the top of the club is that we forecast they won’t even have to dip their hands in their pockets this summer.

Williams added: “They’ve got relatively modest transfer debt and strong revenues. If they have managed to make decent cuts to the wage bill this season then they can spend without the ownership needing to put any extra money in. The player trading will give them the necessary liquidity to do that.

“I don’t think it’s necessarily do-or-die for Norwich in 2025-26. Ultimately, how much they spend is down to the whims of the ownership, but if they want to go up without them needing to front much more of their own money, this is the season.”