On the face of it it seems like very bad business for the Championship club, but there are two reasons why Liverpool won the race to sign the centre-back.
The first is that once Davies new the Premier League champions required his services he only had eyes for Jurgen Klopp's side.
Celtic were also said to have been interested in snapping up the centre-back, and are reportedly gutted at missing out on doing so.
The second reason is that a 20 per cent sell on clause will be included in the deal.
This means that whenever Liverpool part company with the defender in the future, Preston are entitled to 20 per cent of this transfer fee.
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