Manchester United are facing a big summer of transfers, but how much money do the Old Trafford club have to spend amid speculation about financial challenges?
Manchester United are among the clubs teetering on the edge of the Premier League’s Profit and Sustainability Rules (PSR), yet Ruben Amorim’s side have been early in the market by signing Matheus Cunha from Wolves after triggering his €73 million release clause.
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Is this the start of a big investment summer, or have United just managed an early reinforcement with limited opportunities for more signings?
“To buy we need to sell”
After United spent large sums of money on Cunha – who will be the club’s eighth most expensive signing ever – this does not seem to be the case.
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Better financial situation than expected
In fact, the picture for the Red Devils looks far brighter than expected, although it is difficult to determine exactly how much money they have available.
Football finance expert Kieran Maguire shed light on the club’s situation to Sky Sports News:
“When a club signs a player, the cost is spread over the life of the contract. So with Matheus Cunha, it’s £1 million a month – it’s not £60 million that’s deducted in the PSR calculation,” he said.
“We have to remember that this is Manchester United. Sponsors will still associate themselves with them, and fans will still flock to Old Trafford. I think they can look forward to a better Premier League season next year.”
“The third main point is that the focus has been on the financial statements of Manchester United Plc, which is registered in New York. There we saw a loss of £131 million last year. But it is not this company that is used for PSR purposes. Man Utd seem to be using Red Football, where the losses were only £36 million – so they are £100 million better off for PSR purposes.”
Can Man Utd still attract superstars?
The Red Devils remain confident that they can make great strides in the transfer market.
Andy Mitten writes in The Athletic:
“I met with CEO Omar Berrada at Old Trafford last week and asked if it is difficult to attract new players, given the perception of United as a club in decline and with no Champions League football to offer,” he writes.
“He shook his head and added that he was interested in recruiting players who want to join United because they believe in the club, not based on whether they play in Europe’s elite competition. He said this wasn’t difficult and that if someone doesn’t want to come because the team isn’t in the Champions League, United don’t want them anyway.”
This is confirmed by Maguire, who believes that high-profile signings are possible this summer:
“Manchester United remains a dream destination for many players. They want to play at Old Trafford because it’s an iconic stadium, so it can offset some of the financial challenges,” he says.
Manchester United’s transfer market is therefore not without its challenges, but the problems are far less serious than they once appeared to be.
