Featured Image Credit: Alamy/Transfers
Topics: Manchester United, Football
Nasir Jabbar
Football finance expert Kieran Maguire has explained why Manchester United are having to manage their summer spending against Financial Fair Play (FFP) rules.
Man United are closing in on their first signing of the summer as they're set to complete the transfer of Mason Mount, who has undergone his medical at Carrington.
The transfer of the 24-year-old will cost the Red Devils £55 million plus an additional £5 million in add-ons.
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The imminent transfer of the England international could cause issues in Erik ten Hag's pursuit of a new goalkeeper and forward.
The Glazers have reportedly set a limit of £100 million in net spend to comply with FFP regulations.
So, the club will need to offload players or look for cheaper alternatives, having spent a big portion of that budget on Mount.
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Football finance expert Maguire has also provided an insight into why the Premier League giants are having to manage their spending this summer.
"Some have contacted me re why Manchester United FFP issues given PL limit is £105m loss over 3 years. That's not quite the case, the limit is £15m PLUS up to £90m in equity investment by owners. The Glazer family have only put in £0m in those 3 years so allowable loss still £15m," he wrote on Twitter, accompanied with a set of revealing figures.
Maguire added: "Manchester United LBO model also means the club is paying out interest (which is not exempt from FFP) and so this further constrains spending limits. Having said that the club does still have capacity to buy this summer."
In another tweet, he said: "One area where Manchester United have a poor record is player sales, where profits go directly into FFP calcs. Chelsea have generated £5.3m for every £1m of player sales made by #MUFC over last decade."
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Man United remain in the market for new talent, with Andre Onana and Rasmus Hojlund linked with a move to Old Trafford.
But the club may not be able to meet the requirements to sign Onana and Hojlund, which could see Ten Hag pursue cheaper alternatives.