David Maddock of the Daily Mirror is reporting the Dutch midfielder would be demanding close to £240,000 a week should he sign with the Reds.
With the position it's in, there's no way Liverpool could afford those massive wages. There's a certain wage structure in place at the club, and Sneijder is not the kind of player who should break that.
Even in when they had Champions League football, the Reds would have been foolish to shell out that kind of money for a player who has been declining over the past few years.
It was massive wages that helped the club get where it is today. When you look at some of the recent contracts given out to players, it's ridiculous.
Neither of those players contributed much at all to Liverpool, and the club couldn't even give them away for free because their wages were so high.
The club has already made the mistake of overpaying a midfielder already this year when it brought Nuri Sahin in on loan. He hardly ever played and moved back to Borussia Dortmund because Liverpool no longer wanted to pay his wages.
Sneijder, 28 years old, is no longer one of the top midfielders in the world. Back in 2009-10, he was one of the best players in the world. Ever since that season, his form has slowly declined.
It's telling that Galatasaray looks to be his only option right now, unless he takes a wage cut (h/t Andy Hunter of The Guardian). Rightfully so, nobody seems willing to take on such a massive contract for a player who's unworthy of it.
If wages were no issue, you have to wonder where Sneijder would fit tactically in this team.
Sure he would be an improvement over those who currently patrol the Reds midfield, however, Liverpool needs to focus on the players who will contribute in the future.
Sneijder has maybe two or three seasons where he can contribute at a level somewhere near to his best, and that's not even a guarantee.
On the other hand, the likes of Jonjo Shelvey, Suso, Joe Allen and Jordan Henderson will all be entering their primes during that same time frame.
Since the club is rebuilding, it makes more sense to build around the players already at Anfield and let them build the kind of rapport with each other that is essential in a system like Brendan Rodgers'.
Liverpool could use improvements to get back into the Champions League. Some of that improvement is going to come naturally as the young players continue to develop.
That development is not going to happen if midfielders in their late 20s are going to be brought in.
If this were 2010, Sneijder would be a good target for Liverpool. That simply isn't the case anymore.