How much Man United have left to spend explained after £200m transfer blitz

How much Man United have left to spend explained after £200m transfer blitz

Manchester United have been active in the transfer window and Ruben Amorim's side will be looking to complete more deals with Carlos Baleba linked

Manchester United will be looking to complete more transfers before the end of the summer window (Image: Ash Donelon/Manchester United via Getty Images)

There are two Premier League clubs who haven’t recouped anything in transfer fees this summer.

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For one of them, Crystal Palace, keeping that figure low across this window will be seen as a success and they have managed to keep hold of prized assets such as Eberechi Eze, for now at least. Palace have only spent £2 million, however.

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For the other, Manchester United, the lack of summer sales is something that has to be addressed, with the club having spent £197m ahead of the new season. To put that into some context, United’s net spend is that figure right right now, £197m, while Liverpool, who have spent £252m, and Chelsea, who’ve dropped £240m on new additions, have net spends of £83m and £34m.

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Now, it’s important to stress from the outset here that United are not unduly concerned about breaching the Premier League’s profit and sustainability rules (PSR) for the current period. Sales will be an important part of that confidence and so close to the start of the new season the clock is ticking.

In terms of PSR, the reported loss for the three-year monitoring period to 2023/24 - the most recently published full set of accounts - was £313m, a sum significantly higher than the £105m maximum allowed loss.

The accounts submitted for PSR assessment for United are from Red Football Limited as opposed to Manchester United Plc. This drops the losses a little as it strips out some of the expenditure on the Plc reports, such as the charges from the minority stake sale to Sir Jim Ratcliffe at the end of 2023.

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According to football finance expert Swiss Ramble, based on the allowable deductions that had been seen over the last reporting period, United could afford to lose £129m for 2024/25 and still be PSR compliant.

Revenue guidance for the quarter three Plc reports stated that revenue expectations were at £670m, £10m more than in the previous year despite the club finishing in 15th position in the Premier League. But wages and amortisation costs remain high, which means that another heavy loss is likely to be posted, especially with no major European pot of cash to rely on from the Champions League like their main rivals. They also have a lot of transfer debt that is required to be paid by way of instalments, and that requires some cash to be handed over. The club do have a revolving credit facility with multiple lenders that totals £300m, with around half of that still able to be drawn down, although it will come with interest charges so cashflowing deals through player sales would be the preferred option.

United are now working on the 2025/26 financial year which means that it is a three-year cycle that begins in 2023/24, which sees the £33m loss from 2022/23 drop off, although losses of £131m and £129m for 2023/24 and 2024/25 mean that keeping losses down is important.

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That is why the transfer outlay so far, which has added just shy of £40m to the balance sheet in terms of amortisation costs, needs to be offset through sales.

The good news is that United have saleable assets. Marcus Rashford’s loan deal saves more than £10m for the current financial year in wages and gives them a loan fee, although Jadon Sancho’s return eats into that saving. An Alejandro Garnacho exit would represent pure profit, with the figure for Chelsea's interest reported to be around the £50m mark.

Then there is Rasmus Hojlund with the club looking to recoup his remaining book value, which is more than £30m, which would provide some savings on the balance sheet. Other potential exits of big earners no longer in Ruben Amorim’s plans is likely.

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Before any additional spending, United are now likely to try and get some financial security by selling assets as the sale of players and the profit made can be booked in its entirety immediately. The fact that United bargained so long on the Bryan Mbeumo deal should be instructive as to how they need to be mindful around overspending.

United still have the ability to spend, they are one of the world’s biggest sporting institutions that can rely on huge revenues globally. But in terms of ensuring compliance for this current year, up to the end of the fiscal year in 2026, then they know they need sales and to reduce the wage burden. That will likely now be the focus after addressing their attacking deficiencies.

The interest in Brighton & Hove Albion's £112m-rated Carlos Baleba has been widely reported. Tthey don't appear to be in a sensible spot to push for that immediately, though.

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